Bill > A1105

Introduced Session

This bill exempts from the sales and use tax the sale of medical marijuana authorized pursuant to the "New Jersey Compassionate Use Medical Marijuana Act," N.J.S.A.24:6I-1 et seq. The Department of the Treasury has interpreted the "Sales and Use Tax Act" to apply to the dispensation of medical marijuana. Medical marijuana is prescribed in New Jersey for several chronic and debilitating diseases, such as terminal cancer, multiple sclerosis, and seizure disorders, among other life altering conditions. Drugs sold pursuant to a doctor's prescription are exempt from the sales and use tax; however, medical marijuana is still subject to the sales and use tax despite being prescribed by doctors. The patients who are prescribed medical marijuana will incur the full cost since medical marijuana is federally prohibited from being insured. The bill's intent is to help patients, who are suffering from a chronic and debilitating disease, afford their prescribed medication by removing the burden of taxation. Thus, the bill eliminates the sales tax imposed on medical marijuana purchases. The bill takes effect immediately and applies to medical marijuana sold on or after the first day of the first month of the first calendar quarter beginning at least 90 days after the date of enactment.

AI Summary

Committee Categories

John DiMaio (R)*,  Bob Auth (R),  John Azzariti (R),  Chris DePhillips (R), 

Introduced, Referred to Assembly Health Committee (on 01/09/2024)

Official Document