As we barrel toward 2019, more legalizations in the U.S. could be on the docket, with the Garden State, New Jersey, looking to have a very good chance to legalize adult-use cannabis.
Back on Nov. 26, both the state's Senate and Assembly overwhelmingly voted in favor of three bills that would legalize recreational weed within the state, expand the medical pot program, and speed up criminal expungements of low-level cannabis offenses. Although this vote didn't legalize recreational marijuana, it does signal genuine support among state legislators for such a move.
Governor Phil Murphy, a Democrat, has also signaled support for legalization, although trying to hash out an exact tax rate on recreational pot sales has been perhaps the biggest stumbling block. Legislators have called for a low combined tax rate of 14%, whereas Murphy has opined that New Jersey should implement a tax rate that at least matches Nevada at 25%. The danger of placing a high tax rate on recreational sales is that it could drive on-the-fence buyers back to the black market. If legalized, New Jersey's marijuana market could hit $850 million in annual sales by 2022.