We make suggestions to both the state Legislature and governor regarding how these funds should be spent.”
By Sophie Nieto-Munoz of New Jersey Monitor An estimated $6 Million collected through cannabis taxes has sat idle since 2015 despite repeated recommendations to spend them from New Jersey’s Cannabis Agency to state lawmakers.
Since recreational cannabis sales started in 2022, millions in revenue has accumulated through something known as the social equity excise fee tax that’s paid by cannabis cultivators to be spent on projects within towns affected by drug prohibition.
Cannabis Regulatory Commission set its fee at $2.50 per ounce in 2025 – more than double from last year’s figure and in response to activists’ pushes to raise it up to $30 so more money would go toward social equity projects.
As of August 2024, according to the commission’s records, there was more than $6 million remaining in the fund as reported by them. Unfortunately, however, due to state recreational cannabis law requirements these funds must be appropriated through legislation when creating the annual state budget.
Dianna Houenou, Chairwoman of the Commission noted that it had submitted three reports to state lawmakers since being established; Houenou recommended they utilize these funds for economic development efforts in communities impacted by marijuana prohibition; legal counsel access for entrepreneurs leaving prison; and increasing grants available for cannabis businesses.
Each year, the commission holds hearings in which members of the public give input into where these funds should go.
Uncertain of if lawmakers are listening. The budget process for fiscal year 2026 begins next week when Gov. Phil Murphy (D) delivers his budget address.
Assembly Speaker Craig Coughlin (D-Middlesex) and Senate President Nicholas Scutari (D-Union) did not respond to our inquiries for comments; our request for an official response regarding Murphy went unanswered.
On Tuesday at the Cannabis Regulatory Commission meeting, members of the public expressed frustration that funds had yet to be dispersed from an annual fee collected. Houenou stated there is an “implied belief” among committee members that their job involves overseeing how these fees are spent.
“Every year when we publish our report, our recommendations to both the state legislature and governor on how these funds should be dispersed are published in that report,” explained Melinda Hathaway of PACER’s Tax Division. However, they only had advisory authority; not actual disbursement power over funds they did not possess themselves.
This month, the Social Equity Tax Review Commission is hosting virtual hearings seeking public feedback on how best to spend social equity tax revenue. These hearings can be attended on February 20, February 25, and 26 from 6 pm until 1 pm (local times). *Originally reported by New Jersey Monitor
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