Legal Cannabis Sales in New Jersey Expected Imminently

Legal Cannabis Sales in New Jersey - GCI Content Hub - Global Cannabis Intelligence

Legal cannabis sales are expected imminently in New Jersey, as Governor Phil Murphy’s budget brief shows tax revenues due to be generated in the current fiscal year ending on June 30, reports NJ.com.

With a legal adult-use market voted for by New Jersey citizens in November 2020, this will come as welcome news to consumers and operators alike.

It is thought that legal cannabis sales are set to generate $4m in just a few months for the state in tax revenue, with the figure set to be exponentially higher for the upcoming fiscal year.

The 2022-2023 budget projects that New Jersey will receive $19m in tax revenue, highlighting the 6% tax rate on all legal cannabis sales.

This seems perhaps conservative, with some analysts projecting that the New Jersey cannabis market could be worth up to $2bn in just a matter of years. That said, Murphy is most likely keen to under-promise and over-deliver, a strategy that comes directly out of the proverbial political handbook and something that the governor would be keen to promote within a future re-election campaign.

Is New Jersey Ready for Legal Cannabis?

The budgeted tax revenue for the current fiscal year highlights a notable shift by Murphy, whose spending plan signed in June 2021 had no indication of legal cannabis sales in New Jersey by mid-2022.

It is thought that the governor’s office is scrambling to bolster the ranks of the Cannabis Regulatory Commission (CRC) who, like many similar bodies across US states, are chronically understaffed.

Assessing the suitability and viability of licence applications is no mean feat, and one that needs careful consideration. As of the CRC committee’s hearing on February 24, it was noted that hundreds of license applications had been received and have joined the queue for reviewal, adding to the applications previously received by treatment centres hoping to expand into the recreational cannabis market.

It is possible that in the upcoming CRC committee meeting on March 24, an announcement could be made stating the first license holders and the timeframe for legal cannabis sales in New Jersey.

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