The New Jersey gross sales tax on medical marijuana can be lower to 4% on July 1, down from 6.625%, step one in a three-year plan to part out state taxes on medicinal hashish purchases.
On July 1, 2021, the state gross sales tax can be diminished much more — to 2%. In 2022, it is going to be fully erased.
That doesn’t imply medical weed can be fully tax-free: Municipalities are nonetheless permitted to levy a 2% “transfer tax” on purchases inside their borders, although no city has instituted such a tax but.
The gross sales tax phaseout was a key a part of final 12 months’s Jake Honig Compassionate Use Medical Cannabis Act, which additionally legalized medical marijuana edibles, raised the month-to-month allowance to three ounces per affected person and required them to re-certify simply every year.
The regulation was named after Jake Honig, a 7-year-old from Howell for whom medical marijuana supplied the one aid from an inoperable mind tumor. Honig died in 2018.
Activists have decried the coverage of instituting any tax on medical marijuana purchases as “criminal,” since over-the-counter and prescription medicines at conventional pharmacies are exempt from New Jersey gross sales tax. [Read more at New Jersey Herald]