NY Medical Cannabis Tax Lowered

According to the NJ Herald, The New Jersey sales tax on medical marijuana will be cut to 4% on July 1, down from 6.625%. The tax cut is the first step in a three-year tax phase-out plan that was a key part of last year’s Jake Honig Compassionate Use Medical Cannabis Act.  Officials who support the new tax plan predict that by July 1, 2021, the state sales tax will be reduced even more to 2% and by 2022, it will be completely erased. However, that doesn’t mean medical weed will be completely tax-free as municipalities are still permitted to levy a 2% “transfer tax”. Also, many cannabis activist are against policies that institute any tax on medical marijuana purchases, since over-the-counter and prescription medicines at traditional pharmacies are exempt from New Jersey sales tax.