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Medical cannabis is now tax free in NJ
Gabrielle Saulsbery//July 6, 2022
Medical cannabis patients can now obtain their medicine tax free, due to a July 1 rate reduction from 2% to zero.
This was the third and final tax cut on medical cannabis in New Jersey as legislated by the Jake Honig Compassionate Use Medical Cannabis Act, enacted July 2, 2019.
Honig was a 7-year-old New Jerseyan with brain cancer whose symptoms were partially relieved with the use of medical cannabis. He passed away in 2018 after a five-year cancer battle, but his legacy is immortalized in the state’s medical cannabis legislation. After his passing, Honig’s family spoke before the state Legislature several times urging an expansion of New Jersey’s medical cannabis program.
Before July 1, 2020, medical cannabis in New Jersey was subject to a 6.625% levy, the state’s sales tax. Jake’s Law reduced that figure to 4% on July 1, 2020; 2% on July 1, 2021; and eliminated the tax on July 1, 2022.
Prior to the final reduction, medical cannabis was the only medicine in New Jersey subject to tax.
Adult-use cannabis is not affected by the tax reduction.
