Cannabis Tax Plans

Considerations for New Jersey’s Future

by Allison N. Zsamba

Whether taken from a revenue or social justice prospective, the legalization of cannabis products affords states the opportunity to increase tax revenues and decrease criminal enforcement costs. Practically speaking, taxes generate revenue for the provision of government services and the funding of policy initiatives. Often, tax revenues are earmarked for a specific purpose, meaning some or all of the taxes collected with respect to product or service X are designated for government initiative Y. Every state, except Alaska, has earmarked its recreational cannabis tax revenue for something, for example, public education, capital construction, infrastructure, mental health, drug and alcohol services, youth misuse prevention programs (e.g., D.A.R.E.), and the development of police protocols and methods for identifying drivers impaired by cannabis.

 

This article has been reprinted with permission from the December 2019 edition of the New Jersey State Bar Association’s New Jersey Lawyer.

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