High Times in New Jersey: Medical Cannabis Now Tax Free

Hey there, New Jersey cannabis enthusiasts! We’ve got some dank news for you that’s sure to light up your day. The Garden State just became a little greener, and we’re not talking about the grass in your backyard.

As of July 1, under the high-flying banner of the Jake Honig Compassionate Use Medical Cannabis Act, medical cannabis taxes have officially been smoked out in New Jersey. Yes, you heard it right, folks! The tax on your favorite herb has been rolled up and puffed away.

Before you start wondering, let’s clear the haze. Up until this summer, medical cannabis had a 6.625% tax hanging over it, like a rain cloud at a picnic. But Jake’s Law came cruising in like a cool breeze, reducing the tax to just 4% on July 1, 2020. It didn’t stop there, though. The tax then shrunk to 2% on July 1, 2021, and finally, on July 1, 2022, it disappeared faster than a bag of munchies at a 420 party.

So, who’s this Jake we owe our tax-free tokes to? Jake Honig was a brave 7-year-old New Jersey boy who battled brain cancer. Medical cannabis helped ease his symptoms, and even though he sadly passed away in 2018, his legacy lives on. State lawmakers passed the bill named in his honor on July 2, 2019. Here’s to you, Jake!

Now, don’t get too excited, recreational users. Jake’s Law doesn’t apply to adult-use cannabis taxes. Sorry, party people. But hey, at least medical cannabis is no longer the only medicine in the state that’s taxed.

And for those of you wondering how New Jersey stacks up against other states, well, you’re not alone. Several states, including the likes of Alaska, Delaware, Louisiana, Maryland, Massachusetts, Minnesota, New Hampshire, Oregon, Pennsylvania, Utah, Vermont, and Washington, don’t charge sales taxes on medical cannabis. Meanwhile, a whole bunch of other states either apply state taxes, excise taxes, or a mix of both. Some even require businesses to pay gross receipts taxes, which could be passed on to patients.

So, New Jersey, it seems like you’re in pretty good company. Keep on toking, and remember, always use responsibly!