Perhaps the best opportunity since the end of Prohibition – legalization of recreational use marijuana in New Jersey.
By 2025 recreational use marijuana sales in New Jersey will reach $1.2 billion and surpass the $1 billion in sales during the first two years as declared by G-101, the foremost algorithm of forecasting economic events.
New Jersey became the 12th state to legalize recreational marijuana, with the support of 67% of the voters. The measure allows for the possession, sale, and use of marijuana by adults 21 and older. Now lawmakers must set the rules and hand-off the ball to the Cannabis Regulatory Commission.
PLAYBOOK: Two days ago, the PLAN was introduced with a 219-page bill after the November election and advanced after debate on Thursday in the Assembly Appropriations and Senate budget committees. The bill creates the Cannabis Regulatory, Enforcement Assistance & Marketplace Modernization Act, or CREAMM Act. The full Senate and Assembly each need to pass an identical bill, sending it to Governor Paul Murphy to sign into law.
Growers’ licenses: The bill originally limited the number of licenses for cannabis growers to 28 in the first 18 months after legal sales begin. The latest Assembly version raises the cap on growers’ licenses to 37 in the first 2 years after-sales minority-owned begin, without limiting such licenses to marijuana microbusinesses – those with 10 or fewer employees. The Senate version does not include any cap. An official in Murphy’s administration said the governor supports eliminating caps to allow the industry to grow more quickly and be more accessible to women-and minority owned businesses.
Tax rate: The constitutional amendment passed by the voters on election day taxed legal marijuana at the state’s sales tax rate of 6.625% and allowed municipalities to charge an additional 2%. However, Murphy and leaders of the Legislature, which can levy additional taxes, disagreed about whether additional fees should be added on. The latest version of the bill gives the regulatory commission power to pass a .33% fee on cultivators, making the total tax 7%, when marijuana goes on sale. Then after nine months, the regulatory commission can decide whether to charge an additional fee depending on the average price of one ounce of marijuana. The higher the sale price, the smaller the fee.
Revenue dedications: The above-stated fees and revenues from the small tax increase would be split among police departments, the regulatory commission, and social equality programs, like reentry for people leaving prisons, food assistance, legal aid, healthcare, literacy, and others. Initially, the bill dedicated revenue only to the regulatory commission and police officers with training to detect impaired drivers, drawing concern from social justice groups. The Senate version of the bill also dedicates 70% of the total sales tax revenue to social justice programs and police departments.
By creating a legislative pathway to reach proponents’ goals, the intent is to establish New Jersey as the dominant East Coast marijuana market.
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YOU ARE INVITED TO JOIN US IN THE EMERGING RECREATIONAL MARIJUANA BUSINESS.
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