New Jersey Assembly Bill ACR51

New Jersey 2022-2023 Regular Session

• Introduced: 1/11/22
• Refer: 1/11/22

Caption

Proposes constitutional amendment to dedicate tax revenue from sale of recreational marijuana for property tax relief.

Impact

If ACR51 is approved, the funds raised through the recreational marijuana sales tax will provide uniform tax credits to eligible homeowners, which may alleviate the financial burden of property taxes for many residents. The amendment would directly impact property tax laws, shifting the source of funding for relief initiatives to marijuana sales, thus linking a new industry with long-standing fiscal policies. This approach could also influence legislative discussions surrounding marijuana regulation and taxation in the state.

Summary

ACR51 proposes a constitutional amendment to allocate the sales tax revenue from the sale of recreational marijuana to fund property tax relief in New Jersey. Specifically, the bill establishes a special account within the Property Tax Relief Fund, known as the Recreational Marijuana Sales Tax Account. It mandates that the revenue collected from the sales tax on recreational marijuana be credited to this account and used exclusively for property tax credits provided to homeowners who use their properties as primary residences and pay property taxes annually.

Contention

The proposed amendment has sparked discussions regarding the use of marijuana tax revenues, with supporters arguing that it provides a new and innovative means to address property tax issues, which have been a persistent concern for homeowners. Detractors, however, might argue that it separates property tax relief from general funding mechanisms, complicating budget allocations and potentially relying too heavily on revenue from a newly regulated substance. The constitutional amendment necessitates voter approval, underscoring the public's role in shaping fiscal policy related to emerging industries.