The measure eventually discontinues the sales tax for medical marijuana, but it does allow towns to apply a transfer tax of up to 2% on dispensed cannabis.
Democratic Gov. Phil Murphy hasn't weighed in specifically on the bill, but has said he has mixed views on lawmakers' efforts now to focus on expanding medical marijuana. Murphy himself has taken regulatory action to expand the number of illnesses treatable under the program, among other changes.
What's next for adult-use marijuana is uncertain, but Democratic Senate President Steve Sweeney said he'll pursue a 2020 ballot question to legalize the drug. Murphy and Coughlin haven't endorsed or opposed the notion.
New Jersey is one of more than nearly three dozen states with a medical marijuana program. Ten states and Washington, D.C., have legalized adult-use marijuana.