As of January 1, 2023, the Social Equity Excise Fee (SEEF) increases to $1.52 per ounce of cannabis. This adjustment is up from $1.10 per ounce in 2022. The SEEF 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 of cannabis sold or transferred and to pay the SEEF. The SEEF is imposed at the rate of 1/3 of 1% of the statewide average retail price of an ounce of usable cannabis for consumer purchase, as determined by the New Jersey Cannabis Regulatory Commission (CRC).
Medical cannabis is not subject to SEEF and should not be reported on Form SF-100. However, an alternative treatment center (ATC) that has a Class 1 Cannabis Cultivator license for recreational cannabis sales must still file and pay the SEEF on the usable ounces sold to the recreational market. The monthly form must be completed and filed even if no sales or transfers of usable cannabis occur.
The Social Equity Excise Fee is also not applicable to the transfer of cannabis from a cannabis to cultivator from another cannabis cultivator.
The SF-100 form and payment are due by 11:59 pm on the 20th day of the month after the end of the filing period.
To learn more about other cannabis taxes and fees in New Jersey, check out Cannabis Taxes in New Jersey or visit our Cannabis Playlist on our YouTube channel.
Alloy Silverstein’s Ren Cicalese III discusses the cannabis taxes and fees in New Jersey that every cannabis business owner should be aware of.
Empowering business owners and individuals in South Jersey and Philadelphia to feel confident through proactive accounting and advisory solutions.
