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.
What is clear at this point is that New Jersey's residents, its governor, and apparently its legislators appear to favor the idea of legalizing adult-use pot. This suggests it's only a matter of time before the Garden State goes fully green and becomes yet another opportunity for the marijuana industry and investors.
What publicly traded pot stocks might benefit if New Jersey goes green? Let's take a closer look.