N.J. Admin. Code § 17:30-3.4

Current through Register Vol. 56, No. 8, April 15, 2024

Section 17:30-3.4 - Social equity excise fee

(a) In accordance with N.J.S.A. 54:47F-1, the Commission shall impose a Social Equity Excise Fee on the sale or transfer of usable cannabis or unusable cannabis by a cannabis cultivator to any other cannabis establishment other than another cannabis cultivator , including a cannabis manufacturer, cannabis wholesaler, or a cannabis retailer owned by the same license holder as the cannabis cultivator.

1. Such fee shall be implemented in consultation with, and collected by, the Division of Taxation, in the Department of the Treasury.

(b) Effective August 19, 2021, until the fee is adjusted pursuant to (c) below, the Social Equity Excise Fee shall be 1/3 of one percent of the Statewide average retail price of an ounce of usable cannabis for consumer purchase, during the current calendar year, as determined by the Commission.

(c) Beginning nine months following the first sale or transfer of usable cannabis subject to a Social Equity Excise Fee by a cannabis cultivator that is not part of an expanded ATC and continuing annually, the excise fee shall be as follows:

1. If the average retail price of an ounce of usable cannabis in the current calendar year is $ 350.00 or more, the excise fee shall be:

i. $ 10.00 per ounce of usable cannabis; and

ii. $ 3.00 per ounce of unusable cannabis sold for the purpose of manufacturing;

2. If the average retail price of an ounce of usable cannabis in the current calendar year is at least $ 250.00, but less than $ 350.00, the excise fee shall be:

i. $ 30.00 per ounce of usable cannabis; and

ii. $ 8.00 per ounce of unusable cannabis sold for the purpose of manufacturing;

3. If the average retail price of an ounce of usable cannabis in the current calendar year is at least $ 200.00, but less than $ 250.00, the excise fee shall be:

i. $ 40.00 per ounce of usable cannabis; and

ii. $ 12.00 per ounce of unusable cannabis sold for the purpose of manufacturing; and

4. If the average retail price of an ounce of usable cannabis in the current calendar year is less than $ 200.00, the excise fee shall be:

i. $ 60.00 per ounce of usable cannabis; and

ii. $ 18.00 per ounce of unusable cannabis sold for the purpose of manufacturing.

(d) Beginning when the Commission adjusts the Social Equity Excise Fee in accordance with (c) above, the Commission shall provide notice of the fee in the New Jersey Register by November 1 of the current year, to be effective on January 1 of the next calendar year.

(e) An excise fee pursuant to this section shall be per ounce of usable cannabis sold or transferred by a cannabis cultivator. Any fractional portion of an ounce sold or transferred shall be subject to the fee on a proportional basis.

(f) An excise fee pursuant to this section shall not apply to sales to transfers of usable cannabis for use in medicinal cannabis dispensing pursuant to the Jake Honig Compassionate Use Cannabis Act, P.L. 2009, c. 307(N.J.S.A. 24:6I-1 et seq.), or P.L. 2015, c. 158(N.J.S.A. 18A:40-12.22 et seq.).

N.J. Admin. Code § 17:30-3.4

Adopted by 53 N.J.R. 1583(a), effective 8/19/2021

Amended by 55 N.J.R. 402(a), effective 3/6/2023