Cannabis dispensaries in New Jersey have a major role in establishing full NJ marijuana tax compliance. They are simply required to collect and remit state sales tax on adult-use cannabis sales. The cannabis excise tax NJ (SEEF) is remitted separately by cultivators and included in the wholesale prices.
Key Steps for Remitting Taxes
Dispensaries should follow these steps presented below for full compliance:
- Register with the NJ Division of Taxation – Every dispensary should set up an account in order to report and pay taxes.
- Collect the 6.625% state sales tax on recreational cannabis sales.
- File Form ST-50 quarterly through the state’s online portal in order to report sales tax activity.
- Maintain detailed records, covering invoices and chain-of-custody documents, to prepare for potential audits.
- Verify excise tax coverage – Cultivators directly pay the Social Equity Excise Fee (SEEF) of $2.50 per ounce. On the other side, dispensaries should confirm these costs are reflected in wholesale pricing.
Additional Considerations
- Municipal Transfer Tax: Specific towns may impose an extra tax of up to 2% on cannabis sales. Dispensaries should account for these local taxes separately.
- Cannabis Social Equity Fee NJ: This fee funds community as well as social equity programs and is built into wholesale costs.
- Stay Updated: It should be noted that NJ cannabis tax rates and rules might be changed quickly. Therefore, it is critical for dispensaries to track updates from the Cannabis Regulatory Commission.
Professional Support Matters
Tax reporting for cannabis businesses is complicated due to overlapping state and municipal requirements. Collaborating with a cannabis business CPA NJ can be helpful in ensuring precise reporting and timely submissions. Dimov Tax provides custom-specialized cannabis tax filing services and assists dispensaries in satisfying dispensary tax requirements NJ with confidence.