New Jersey Governor’s Cannabis Tax Hike Sparks Debate
Gov. Phil Murphy‘s proposal to raise New Jersey’s cannabis excise tax from $2.50 to $15 per ounce has ignited a fierce debate among lawmakers and industry leaders. Billed as a strategy to fund social programs, the sixfold increase has raised concerns about its potential impact on the state’s legal cannabis market.
This policy shift comes just as cannabis professionals prepare to gather at Benzinga’s Cannabis Market Spotlight: New Jersey event on March 4, where Murphy’s tax plan is expected to be a topic of discussion.
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Governor Proposes Major Cannabis Tax Increase
According to the New Jersey Monitor, Murphy introduced the tax hike during his Feb. 25 budget address, describing it as a way to reinvest in communities harmed by past drug policies. The proposed increase would apply to New Jersey’s social equity excise fee, a tax imposed on cannabis cultivators, raising it from $2.50 per ounce to $15 per ounce. Murphy argued that cannabis, once used to penalize individuals through harsh criminal sentencing, is now serving as a financial resource for rebuilding communities.
“In just five years, cannabis has gone from destroying lives—in the form of excessive criminal sentences—to helping save lives,” Murphy said during his address, as reported by the Green Market Report. The tax revenue, which state officials estimate could generate $70 million annually, would be allocated to social equity programs, including violence prevention and youth outreach …