Reduced sales tax on medical cannabis in NJ

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Reduced sales tax on medical cannabis in NJ 

 

Karen Berger, PharmD, Medical Writer

Do you find that medical cannabis provides you with incredible relief from your symptoms, but that you have trouble affording the hefty price tag every month? Many patients we have talked to, like Andrea, find that medical cannabis is a critical part of their treatment plan. However, the price is so steep that many patients have to take on several jobs just to afford their monthly allotment. 

Hopefully, some changes could ease patients’ finances a little bit. On July 1st, the New Jersey sales tax on medical cannabis decreased from 6.625% to 4%. This is the first step in a plan to phase out NJ state taxes on the purchase of medical cannabis from a dispensary. 

Next year, on July 1, 2021, the sales tax will be reduced to 2%, and in 2022, no sales tax will be charged. 

Politicians supported the bill – Senator Robert Singer, who voted for the bill, said, “How dare we use the term ‘medical’ and charge poor people and working people and families sales tax on something that helps them feel better.”

The Jake Honig Compassionate Use Medical Cannabis Act 

Phasing out sales tax was one part of the Jake Honig Compassionate Use Medical Cannabis Act. The law was named after a seven-year old boy, Jake Honig, from Howell, New Jersey. He suffered from a brain tumor, and medical cannabis provided his only relief. He died in 2018. The bill, which outlined the elimination of sales tax, also legalized edibles for adults (edibles were already legal for minors), increased the monthly medical cannabis allowance to 3 ounces (the previous amount was 2 ounces), allowed home delivery, and changed recertification to once a year (it was previously every 90 days), among other changes. 

Looking to the future

In November, New Jersey residents will vote to legalize recreational cannabis and permit recreational dispensaries. Some legislators hope to pass a bill to decriminalize cannabis. 

MyCureAll’s take

Eliminating sales tax on medical cannabis is a small step in the right direction – there is no sales tax on over-the-counter or prescription medication. Cannabis is medicine, and patients should not pay sales tax on it. 

However, eliminating sales tax alone does not make medical cannabis affordable. Patients will still struggle to pay for medical cannabis – a few dollars of sales tax won’t make much of a difference. This is why MyCureAll is working to get medical cannabis covered by all insurance companies. Medical cannabis is medicine! It is safe and effective, and does not cause hundreds of thousands of deaths (like prescription opioids). Sign our petition to get medical cannabis covered by insurance. 

MyCureAll – What we are doing right now

CBD Products

In addition to working with insurance companies to get medical cannabis covered, MyCureAll is working on a number of projects. We offer pharmacist-formulated CBD products such as CBD oils and topicals in our Shopify store. Our products are extensively tested for purity, and to ensure there is no contamination.

Canna-Measure

Canna-Measure is a fun and interactive artificial technology for medical cannabis consumers to rate symptoms based on their qualifying condition(s) and cannabinoid/terpene profiles. The patient enters the strain and mode of ingestion to assess the appropriate protocols.

Canna-Meter

Our Canna-Meter helps medical providers and budtenders find or prescribe strains based on each patient’s cannabinoid/terpene profiles and qualifying condition(s).

References

  1. Davis, M. Your NJ medical marijuana is about to get cheaper. Here’s why. Asbury Park Press. June 29, 2020.
  2. Governor Murphy Signs Legislation to Dramatically Reform New Jersey’s Medical Marijuana Program, Expand Patient Access. State of New Jersey website (nj.gov)
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