Due to a tax rate reduction from 2 percent to zero effective July 1, medical cannabis patients can now purchase their medication tax-free.
According to the Jake Honig Compassionate Use Medicinal Cannabis Act, which went into effect on July 2, 2019, this was the third and final tax reduction for medical cannabis in New Jersey.
Honig, a 7-year-old New Jersey resident with brain cancer, had some relief from his symptoms after using medical marijuana. After a five-year cancer fight, he passed away in 2018, but his legacy lives on in the state’s medicinal cannabis laws. After his death, Honig’s family frequently advocated for an expansion of the state’s medical cannabis program in speeches before the state legislature.
Prior to July 1, 2020, the state’s sales tax of 6.625 percent applied to medical cannabis in New Jersey. Jake’s Law lowered the percentage to 4% on July 1, 2020; to 2% on July 1, 2021; and to 0% on July 1, 2022.
Medical cannabis was the only medication in New Jersey that was taxed before the final reduction.
The tax break does not apply to cannabis used for adult usage.
