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Negotiations Nearly Complete on New Jersey Recreational Marijuana Bill

A major breakthrough in negotiations between New Jersey Governor Phil Murphy and state legislative leaders may mean a recreational marijuana bill may be on the near horizon.

Two major issues have been decided in negotiations between Murphy and state legislative leaders. The first is how the state will tax cannabis. Instead of using a cannabis sales tax like other states, New Jersey will implement a simple $42 excise tax for every once of marijuana sold. This is a somewhat interesting proposal. If marijuana prices are high, New Jersey would hypothetically have one of the lowest cannabis tax rates in the country. However, if the price of marijuana drops, it could end up with one of the most expensive rates. But legislative leaders said if the price began dropping and the tax became too high, they would consider adjusting it.

The other issue was a cannabis regulations board. The two parties have agreed to a five-person oversight commission. Three of the appointees will belong to Murphy and two of them will belong to the legislature.

The only issue remaining is how many retail locations the state will allow when they legalize marijuana.

The marijuana bill requires 21 votes in the New Jersey senate in order to pass. It's not entirely clear if they have all the votes they need yet, but hopefully once negotiations are done, they will.

(h/t CBS 2)


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