The New Jersey Cannabis Trade Association, a representative body for many cultivators and dispensaries in the state, has issued a report expressing concern over the sluggish progress of New Jersey’s legal cannabis industry, which has been hindered by slow licensing and inadequate enforcement. The report primarily targets the New Jersey Cannabis Regulatory Commission (CRC), the agency responsible for regulating and overseeing the legal marijuana market. The Association blames the CRC for hampering the industry’s potential growth due to a lengthy licensing process, leading to delayed retail store openings.
The report suggests that the state could be losing substantial tax revenue, potentially up to $1.8 million per location annually, due to these delays. It also highlights the prevalence of unregulated hemp-derived cannabinoids and the state’s lenient stance against illicit operators as factors contributing to the industry’s sluggish expansion.
Recreational cannabis sales in New Jersey have amassed approximately $306 million in revenue and yielded $18.8 million in sales tax during the initial two financial quarters of 2023. However, the NJCTA anticipates that the current year’s taxable revenue from legal marijuana sales might reach around $38.39 million, considerably lower than comparable states with legalized sales.
The CRC has received over 2,000 applications for marijuana business licenses since December 2021, with about 1,399 approved and 400 still in processing. Despite the agency’s claims of clear timelines, many applicants experience delays due to external factors such as municipal approvals and real estate challenges.
The Association calls for streamlined bureaucracy and faster license approvals, emphasizing that current delays hinder both operators and customers. It also highlights the lack of a level playing field between legal operators and the illicit market, advocating for new product approvals, such as additional types of edibles, to help legal businesses compete.
The CRC acknowledges accessibility issues but expects continued growth in the industry. However, the Association argues that New Jersey’s cannabis industry needs more rapid development, suggesting that the state is struggling to establish a solid foundation for operators to succeed.