Dutchie does not provide compliance advice. Merchants are responsible for their own compliance. External Dutchie compliance documentation may be updated from time to time and has been prepared for informational purposes only, is not intended to provide, and should not be relied on for, tax, legal or compliance advice. Merchants should consult their own tax, legal and compliance advisors to determine how best to operate within the cannabis industry.
In New Jersey, cannabis is regulated by the Cannabis Regulatory Commission (CRC). Medical and adult-use cannabis are allowed. New Jersey also allows visiting out-of-state medical patients to purchase medical cannabis through a nonrenewable, six-month medical card. In order to obtain an out-of-state patient medical card, patients must consult with a registered New Jersey health care practitioner who will enroll them in NJ’s patient registry allowing them to register for a card with a current copy of their registration in the home state’s program.
New Jersey uses Metrc as their seed-to-sale state traceability system for adult-use cannabis. However, medical-only licensees are not required to use Metrc. Medical sales continue to be reported to NJ’s patient portal.
Currently in New Jersey, medical and adult-use cannabis inventory are separated and must be tracked separately. Transfers between medical and adult-use inventory are allowed. Retailers who sell both adult use and medical cannabis must certify that it has “sufficient quantities of medical cannabis or medical cannabis products available to meet the reasonably anticipated needs of registered qualifying patients...” N.J.S.A. 24:6I-46a(3)(a)(iv)
Prior to migrating to Metrc, NJ employed unique identifiers (NJ UIDs) to track cannabis. The CRC has confirmed that in lieu of using the NJ UID, operators may use Metrc package tag numbers in order to satisfy the “unique stamp or tag” requirement as set forth in N.J.A.C 17:30-16.4
The CRC requires inventory audits at least monthly and a comprehensive annual inventory. Operators must document the record of an inventory conducted and record must include:
The following is equivalent to 1 ounce of usable cannabis:
NOTE: Equivalency is based on total weight of the product sold. For products containing both THC and CBD, equivalency is based on the total weight of the concentrate. For example, a product containing 400 mg of CBD and 100 mg of THC has a total weight of 500 mg or 0.5 grams.
Sales Tax
Local Cannabis Transfer Tax
Each municipality will set its own rate or rates, but cannot exceed 2% of the receipts from each sale by a cannabis cultivator, cannabis manufacturer, or cannabis retailer, or 1% of the receipts from each sale by a cannabis wholesaler.
No sales tax on medical cannabis
Retailers and cannabis delivery ervices may transport cannabis to patients and consumers.
Privacy/Data Retention and Log Requirement
Per N.J.A.C. 17:30-14.3(b) and (c), retailers are required to keep a log that the examination of ID and confirmation of legal age occurred. Additionally, while retailers may not keep an actual copy of any customer’s photographic ID, they may collect information typically acquired in an alcohol transaction, including the customer’s date of birth.
The CRC compiles their proposed and final statutes and regulations here
