Governor Phil Murphy has proposed a steep increase in New Jersey’s social equity excise fee on marijuana, raising it from $2.50 to $15 per ounce.
The additional revenue, estimated at $70 million, would be directed toward social service programs and violence intervention efforts.
The proposal follows a recent tax hike in December, when the state Cannabis Regulatory Commission increased the fee from $1.24 to $2.50 per ounce. The tax is paid by cannabis cultivators.
“In just five years, cannabis has gone from destroying lives — in the form of excessive criminal sentences — to helping save lives,” said Governor Phil Murphy during today’s budget address.
Murphy’s plan would also extend the tax to intoxicating hemp products, such as delta-8 and delta-10, which produce effects similar to THC.
Senate President Nicholas Scutari opposes the move, saying “I don’t want to see our taxes for that product go up, which it already can’t compete with the gray market, the black market product.”
Murphy administration officials say they don’t need approval from the cannabis agency to raise the social equity excise fee.
According to the New Jersey Cannabis Regulatory Commission, there was over $1 billion worth of marijuana and marijuana products sold legally in 2024.
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