By Ilana Siyance
A proposed bill to legalize recreational marijuana in New Jersey, also includes a new “social equity” tax. The levy would benefit communities of color, who are disproportionately affected by drug laws.
As reported by the NY Post, bills by both the Senate and Assembly allow the Cannabis Regulatory Commission to impose an optional “social equity excise fee” for programs hoping to relieve racial disparities. “We’ve spelled out the communities that we look for this money to be invested in,” Senate President Stephen Sweeney said Monday. “I think we made our intentions very clear in the Senate.”
Initially the legislation planned to tax marijuana sales at a 6.625 percent state tax. Last month, however, the proposed tax rate was raised to 7 percent, as per the Asbury Park Press. The Senate aims to have 70 percent of the sales tax revenue, plus the entire social equity fee, to go toward funding community programs, NJ.com said. The Assembly, on the other hand, only wants the sales tax to be put toward those programs.
The social equity funding was pushed by the state Legislative Black Caucus and other advocates. “A key component of cannabis legalization is addressing social justice concerns,” Assemblyman and caucus member Jamel Holley said last month. “The fact that Black New Jerseyans are 3 or 4 times more likely to be arrested on cannabis charges has contributed to the disenfranchisement of (Black) communities.”
“This provision represents a hard fought victory in the fight for racial justice in the state of New Jersey,” said Rev. Charles Boyer, of the Salvation and Social Justice. Proponents hope the tax will help provide startup grants, low-interest loans and job training programs for minorities and groups of color. As of now, the bill does not stipulate which geographic areas would benefit. The bill’s excise tax is now optional, but advocates say it should be mandatory.
During the last elections, New Jersey voters showed overwhelming support for a referendum to legalize recreational pot in the Garden State for adults 21 and older. Since then, the Legislature has been busy battling over the specifics, including how many licenses to give to weed cultivators. The senate and assembly have also been disputing whether they should ease penalties for possession of magic mushrooms, as part of their decriminalization of marijuana possession, up to 6 ounces.
The Assembly and Senate must agree and pass identical versions of the bill by Jan. 1, in order for it to be signed into law by Gov. Phil Murphy.