Buying medical marijuana in New Jersey is now tax-free — here’s why

Through Jelena Martinovic

Beginning July 1, purchasing cannabis through New Jersey’s Medicinal Cannabis Program will be tax-free, the result of a three-phase process passed in 2019 when regulations to eliminate the tax were signed into law by Gov. Phil Murphy.

After years of paying above-average prices for medicinal cannabis, MMJ patients in New Jersey can now purchase medicinal cannabis products at a licensed dispensary at lower prices, New Jersey 101.5 reported.

Photo by Ivan Balvan/Getty

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“The elimination of the state sales tax on medicinal cannabis is consistent with Governor Murphy and the Legislature’s intention to prioritize patients and improve affordability,” said Jeff Brown, executive director of the New Jersey Cannabis Regulatory Commission. “With the sales tax being reduced from 4% to 2% and now to 0%, patients have been able to spend less on their medications, further ensuring that patients are prioritized over recreational users.”

Named after a 7-year-old boy who used cannabis to relieve cancer symptoms, the Jake Honig Compassionate Use Medical Cannabis Act applies only to medical cannabis and does not affect the sale of recreational marijuana, which began in the Garden State in 2017 April.

Originally available from dispensaries operated by seven marijuana operators, recreational cannabis was embraced by New Jersey residents.

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The NJ Cannabis Regulatory Commission announced in May that consumers bought $24 million worth of cannabis in the first month of sales, or about $5 million per week, after a record-breaking first day of spending of $2 million .