Exempts from sales and use tax sales of medical marijuana.
Impact
If enacted, A1105 would amend existing sales tax law to include medical marijuana as a tax-exempt item akin to other prescribed medications. The bill acknowledges that medical marijuana recipients currently bear the full financial weight of their prescriptions since it is not federally recognized as a legal medication and cannot be insured. Advocates for the bill argue that it will assist those most in need by making necessary treatments more affordable, potentially improving the quality of life for many residents. It is expected to take effect 90 days after passing, applicable to future sales.
Summary
Assembly Bill A1105 proposes an exemption from the sales and use tax for medical marijuana sales in New Jersey. This legislation is framed under the context of the New Jersey Compassionate Use Medical Marijuana Act, which allows the use of medical marijuana for patients suffering from various chronic and debilitating conditions, including terminal cancer and multiple sclerosis. By removing the sales tax from these purchases, the bill aims to ease the financial burden on patients who rely on medical marijuana for their treatment, which is not covered by health insurance due to its federal status.
Contention
While the bill garners support for its intent to aid patients, there may be contention regarding its implications for state tax revenue and the legality of medical marijuana. Critics might voice concerns about the potential impact on the state treasury as the exemption could lead to substantial revenue loss from sales taxes which could otherwise be utilized for funding public services. Furthermore, debates may arise regarding the appropriateness of continued taxation on medical marijuana given its recognized medicinal benefits, with some arguing that all medicinal drugs should receive similar tax treatment.