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Thanks to “Jake’s Law,” New Jersey Ends Tax on Medical Cannabis

Compassionate use act eliminated 6.625% sales tax on medical cannabis — the only medicine in New Jersey subject to taxation.




On July 4, New Jersey Governor Phil Murphy officially ordered the ending of state sales tax on medical cannabis at the New Jersey state capitol in Trenton, NJ. PHOTO COURTESY WIKIMEDIA COMMONS

As the final step in making medical cannabis fairly available to everyone, New Jersey eliminated its sales tax on medical marijuana on July 1st. The state’s 2019 Cannabis Act — which eased regulations and expanded the availability of cannabis — included three-step plan to remove all taxes on medical cannabis in 2022.

The Jake Honig Compassionate Use Medical Cannabis Act, or Jake’s Law, was named in honor of 7-year-old Jake Honig who died from brain cancer in 2018. Similar to the story of Charlotte Figi, a young girl whose battle with severe epilepsy inspired Colorado to pass laws recognizing CBD as a curative, Jake Honig’s parents saw the relief  medical cannabis brought their son. After his death, the family led efforts to reform the medical marijuana program in the state.

“Our biggest obstacle was running out of medicine, something that no parent should ever have to endure. Your child goes through everything that’s asked. Surgeries. Radiation. Chemotherapy. And then when it comes time where you can no longer save his life, all you can do is keep him comfortable, you should be allowed to do that,” said Mike Honig, Jake’s father.

Reform out of tragedy

Jake’s law created a new state agency behind New Jersey’s medical cannabis program, more than doubled the number of cultivators, eased medical permits and restrictions and promised to remove the 6.625% sales tax on medical cannabis. To that end, on July 1, medical cannabis sales taxes were lowered from 2% to 0% — made official on July 4 by Governor Phil Murphy’s order. Adult-use cannabis is not affected by the tax reduction.

The Honig family says that while Jake may have lost his battle with cancer, his legacy lives on with the state’s medical cannabis legislation. When Murphy signed Jake’s Law, only 17,000 patients were enrolled in New Jersey’s medical cannabis program. Now more than 80,000 New Jersey residents are getting the help they need. Prior to the final reduction, medical cannabis was the only medicine in New Jersey subject to tax.




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