Regulators in New Jersey voted to double an excise fee charged to cultivators that sell marijuana to other license holders with the proceeds of such sales going into a social equity fund.
Social equity businesses also will be the first in the billion-dollar market to apply for consumption-lounge licenses beginning Jan. 2, the New Jersey Cannabis Regulatory Commission (CRC) announced at its Dec. 12 meeting, according to Trenton-based business publication NJBiz.
The CRC’s move last week to accept applications that would allow retailers to permit on-site consumption follows regulations first proposed two years ago.
Marijuana consumption lounge rules
New Jersey would be the 12th state to permit consumption lounges.
There are about 200 licensed marijuana stores in New Jersey, NJBiz reported; it’s unclear how many of those will pursue lounge permits.
There will be three rounds of applications for consumption lounge permits.
As NJBiz first reported:
- Social equity businesses, defined as “ventures owned by individuals” who have lived in one of the state’s 55 designated “economically disadvantaged areas,” can apply for consumption lounge permits starting Jan. 2
- So-called “diversely owned businesses,” which are certified by state officials as being owned by women, racial minorities or disabled veterans, can apply April 2.
- All other retail operators can apply for the permits July 2.
Application fees total $1,000, with annual licensing fees ranging from $1,000 for microbusinesses and $5,000 for “standard businesses,” NJBiz reported.
Lounges will be prohibited from selling food and must allow medical marijuana patients to bring regulated marijuana products from other retailers.
Entry to consumption venues will be limited to patrons age 21 and older, and no tobacco or alcohol sales will be allowed.
Social equity excise fee
The CRC also voted to increase the so-called “social equity excise fee,” or SEEF, from $1.24 to $2.50 per ounce.
The fee increase will go into effect Jan. 1.
The SEEF is assessed to cultivators who sell or transfer cannabis to other license holders, NJBiz noted.
The state collected $2.6 million in SEEF fees in 2024 and a total of $4 million to date, according to NJBiz.
Rather than going to equity operators, SEEF fees fund “education, economic development and social services” in areas affected by the war on drugs.
Operators praised the modest increase, but some critics said the amount is wholly inadequate.
According to the state chapter of the American Civil Liberties Union, fees would need to be 12 times higher to have tangible effect.
Even with the increased fee, New Jersey has some of the lowest marijuana taxes in the U.S.
