New Jersey cannabis officials have collected over $6 million in cannabis social equity excise fees but the state has yet to allocate any of the funds.
New Jersey Has $6M+ In Unspent Social Equity Tax Funds
Cannabis business, dollars and a leaf of marijuana, the theme of money and cannabis
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The New Jersey Cannabis Regulatory Commission (CRC) has collected over $6 million in cannabis social equity excise fees but the state has yet to allocate any of the funds, the New Jersey Monitor reports.
The social equity excise tax was established to help fund projects in towns and areas most heavily affected by the drug war. The agency started collecting the excise tax when the adult-use industry launched in 2022. State law, however, requires the Legislature to allocate the funds — and despite CRC officials sending spending recommendation to lawmakers, the funds remain untouched.
CRC Commission Chair Dianna Houenou said in the report there is a “misconception” that cannabis officials themselves are responsible for overseeing the fee:
“If you read the report that we publish every year, we only recommend to both the state Legislature and to the governor how these funds should be used. Again, we do not have the power to dispense these funds — we can only recommend.” — Houenou, via the New Jersey Monitor
Meanwhile, data from the CRC in January showed that about half (47%) of the state’s annual adult-use cannabis licenses were awarded to majority minority-owned businesses.
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