The New Jersey Division of Taxation has announced changes to the Social Equity Excise Fee (SEEF) for recreational cannabis, effective January 1, 2024. The new fee will be $1.24 per ounce, a reduction from the 2023 rate of $1.52 per ounce.
Compliance Updates for Class 1 License Holders
Class 1 license holders must file monthly tax returns (SF-100), reporting total ounces sold or transferred and paying the SEEF accordingly. This applies even if there are no sales or transfers during a particular month.
Medicinal Cannabis Exemption
While medicinal cannabis remains exempt from SEEF, alternative treatment centers with a Class 1 Cannabis Cultivator license for recreational sales must still file and pay SEEF on usable ounces sold in the recreational market.
The announcement emphasizes the state’s commitment to a fair cannabis market. Businesses are urged to stay informed to ensure compliance and contribute to the continued growth of the industry.
For additional details and tax advice, please contact Martin D. Hauptman at (973) 243-7912 or via email at mhauptman@mblawfirm.com.