The New Jersey Cannabis Regulatory Commission (CRC) has approved increase in the state’s social equity excise fee (SEEF), and introduced an application process for cannabis consumption lounges.
Starting January 1, 2025, the SEEF will increase from $1.24 to $2.50 per ounce. Revenue from this fee is directed toward programs supporting education, economic development, and social services in communities disproportionately affected by the war on drugs.
Over the past fiscal year, New Jersey generated approximately $2.6 million from the SEEF. The fee had previously fluctuated, dropping from $1.52 in 2023 to $1.24 in 2024, after starting at $1.10 when recreational marijuana sales were legalized.
While the current market price for cannabis in New Jersey averages $330.68 per ounce, the law permits SEEF adjustments up to $30 per ounce when the average price falls between $250 and $350. Proponents of the increase highlight the state’s comparatively low cannabis taxes and the potential for the fee to advance social justice goals. However, critics warn that the added cost could burden consumers as businesses may pass it along.
The CRC also announced that applications for on-site cannabis consumption lounges would open in 2025. Social equity businesses, defined as those owned by individuals from the state’s 55 economically disadvantaged areas, can apply starting January 2. Applications for diversely owned businesses, certified by the New Jersey Department of Treasury as minority-, woman-, or disabled veteran-owned, will follow on April 2. The process opens to all Class 5 retail operators on July 2. The application fee is $1,000, with $200 due upon submission and $800 required for approval.
Consumption lounges are viewed as an important step in ensuring equitable access for cannabis use, especially for renters and others unable to consume at home. Dispensaries hosting lounges must adhere to strict regulations, including bans on tobacco and alcohol sales and requirements that patrons be at least 21 years old. While food cannot be sold on-site, customers may bring their own or have it delivered. Additionally, medicinal cannabis patients may bring products from other retailers for personal use.
Currently, only 11 other states, including California, Colorado, and New York, allow on-site cannabis consumption.
The CRC plans to release detailed application documents and resources on its website in the coming days.
