As marijuana bills shape the nation, New Jersey joined the party. The recent push to legalize recreational marijuana in New Jersey will include a “social equity” tax according to recent reports. That means that the tax will benefit communities of color disproportionately affected by drug laws. The report states that bills by the Senate and Assembly will allow the Cannabis Regulatory Commission to levy “an optional social equity excise fee” for programs geared towards alleviating racial disparities.
Since the spring, Black Lives Matter movements have shaped the nation and have called for change. While this may not be a large step, it’s a short step towards proactive action.
Social Equity Further Explained
While New Jersey is formally known for Caesars Sportsbook and the Jersey Shore, the state will now join a long list of states that legalize recreational weed. New Jersey will hit marijuana sales with a 6.625-percent sales tax, and it could grow as high as seven percent. According to the Senate, 70% of the sales tax revenue, plus all of the social equity fees, will be used towards funding community programs. By making the fee mandatory, it gives more funding to these programs with more distribution.
The Hold Ups
Last month, the voters in New Jersey overwhelmingly voted to legalize marijuan for adults 21 and older. However, the legislature has been stalling over the fine details, including the amount of license to give out to weed growers. While the Senate has passed the bill, the Assembly has been holding it up. The Assembly and the Senate must pass identical versions before the January 1 deadline. If this is not done, then Governor Phil Murphy won’t be able to sign it.
The sides have also been feuding over an amendment, including the decriminalizing of possession of up to six ounces of marijuana. The Senate has done away with the limits completely, while the Assembly believes that the state can issue only 37 licenses to grow during the first two years of legalization. The New Jersey sports betting platform took off when it was first introduced, and it’s easy to believe that cultivators would too if given the opportunity. The back and forth conflict for this is puzzling.
The main question is that the marketplace would create an oversupply and marijuana would devalue over time. By keeping the growers small in quantity, it would spur more competition in the licensing process, but it would likely keep prices too high. At that point, we would be back to where we started: Finding marijuana on the illegal market.
If the two sides cannot come up with an agreement soon, it could derail years of progressive movement. Take a look at what Illinois did after they legalized marijuana in 2020. The state was going to award 80 licenses, 40 for craft growing and 40 for infuser, but Governor J.B. Pritzker delayed that motion. The delay has significantly hurt the industry. If New Jersey doesn’t take note, the state could be in the same boat.
In other words….
The skim gets sent to Paterson and whatever corrupt liberal scumbag that’s on duty gets a taste along with all the other dogs and ponies on the Paterson dime.
Welcome to New Jersey.
Murphy ran on legal weed within 90 days. How did that go? Ill hold my breath. Too many “considerations” in New Jersey. My weed guy is a person of color and is worried what will happen to his livlihood. I suspect any legal licenses will go to politically connected hangers on – mostly white people, leaving guys like Leroy in the lurch.
Leroy it’s going to get interesting.
Colt 45
Yes.
Focus on legalizing marijuana.
Let the people get high so they don’t notice how oppressive and failed are all of the other NJ policies.
It’s a philosophy of distract from the problems, not fix the problems and distract from noticing implementation of corrupt and oppressive policies.
Dopes smoke dope…the “Devil Weed” is no freaking good!
So let’s tax the sale of lite beer and those proceeds can go to overweight drunks, bourbon tax for those with missing teeth, and white wine tax for sissy Cowboy fans.
Again, the Dems display the fact that they have no idea about human nature.
“The main question is that the marketplace would create an oversupply and marijuana would devalue over time. ”
With proper lighting, that parking garage might be put to profitable use.
“I suspect any legal licenses will go to politically connected hangers on”
Only after an extensive nationwide search.
It’s things like this that will never make legal marijuana sales viable. Make drugs legal, they said. Get it out of the hands of criminals they said. The black market street sellers will always be able to do it cheaper and with far lower overhead than any government-approved outlets.
You know the cops don’t like this, they’re losing control.
Buy overpriced and overtaxed weed, but grow some of your own and party with a neighbor and you’re screwed. It’s all about tax and political patronage.