What’s In The ‘Partial Remedy’ Legislation?
For the purposes of New Jersey’s tax code, a licensed cannabis company's gross income “shall be determined without regard to section 280E of the [federal] Internal Revenue Code," reads the legislation. And continued “shall apply to taxable years beginning on or after January 1 following enactment.”
Sponsored by Assemblymember Annette Quijano (D), the bill "was approved by the Senate in a vote of 32-3 following no debate or discussion on the floor," as first reported by Marijuana Moment.
Last year, the measure was amended in the Assembly Oversight, Reform, and Federal Relations Committee. At that time, its members agreed to remove a previous provision that would have made only cannabis license holders with gross receipts less than $15 million eligible for state tax deductions.
According to the Office of Legislative Services (OLS), “providing access to these deductions and credits may also help generate more economic activity by cannabis businesses,” and so “the State and local governments that tax cannabis businesses might indirectly realize an indeterminate amount of additional annual revenue.”