NJ To Phase Out Sales Tax On Medical Pot, Allow Local Tax
New Jersey will phase out the state sales tax on medical cannabis by 2022 and allow towns that host dispensaries to impose up to a 2% local transfer tax as part of a bill Gov. Phil Murphy signed Tuesday.
Murphy, a Democrat, signed A.B. 10, which includes a gradual exemption for medical cannabis from the state's regular sales tax rate of 6.625%. The sales tax rate would decrease to 4% on July 1, 2020, drop to 2% on July 1, 2021, and be eliminated on July 1, 2022.