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May 20, 2022 | Posted in:

NJ Cannabis and the Social Equity Excise Fee

New Jersey is now one month into legal retail sales of cannabis, which means it’s time for the first reminder of the monthly tax deadline for cannabis business owners: the Social Equity Excise fee and form are due on May 20, 2022.

 

What is the Social Equity Excise Fee (SEEF)?

In addition to state sales tax, recreational cannabis and licensed cannabis establishments in the state of New Jersey are also subject to a new monthly Social Equity Excise Fee (SEEF).

The SEEF is $1.10 per ounce of cannabis, which is due on each usable ounce of recreational cannabis sold by a Class 1 (Cannabis Cultivator) license holder. Class 1 license holders must file a monthly tax return, the SF-100, to report the total ounces sold or transferred and to pay the SEEF.

The monthly form must be filed even if no sales or transfers of usable cannabis occur.

 

When is the Social Equity Excise Fee (SEEF) due?

Form SF-100 and fee payment are due by 11:59 p.m. on the 20th day of the month after the end of the filing period. If the due date falls on a weekend or legal holiday, the return and payment are due on the following business day.

As legal retail sales began just in April, the first due date for SEEF is May 20, 2022.

SEEF can be filed and paid online at https://www1.state.nj.us/TYTR_BusinessFilings/jsp/common/Login.jsp?taxcode=02.

 

What other taxes are there on legal weed?

A retail purchase is assessed the standard NJ state Sales Tax rate of 6.625%. Consumers also can be charged a locally imposed Transfer Tax of up to 2%, which is administered by the municipality where the dispensary is located. Medical cannabis is currently taxed at a reduced Sales Tax rate of 2%, which will phase out to 0% on July 1, 2022.

 

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