Home city to one to the US’s greatest poets and by day Dr… NJ’s Paterson is looking at cannabis taxation
North Jersey.com reports
PATERSON — City officials are getting ready to start collecting taxes on the medical marijuana sold at the cannabis dispensary that opened on Route 20 last December.
The business has been making about $500,000 in monthly sales, city officials said. The maximum 2% “transfer tax” allowed under state law would generate about $120,000 for the city over the course of a year, officials said.
Several council members said they expected Paterson to reap a greater financial benefit from the facility, during a discussion of the marijuana tax at the governing body’s meeting on Tuesday night. Other officials said recreational marijuana dispensaries —if New Jersey’s Legislature approves their operation in the state — would generate more money in taxes.
The council is scheduled to take a preliminary vote on the new tax on Tuesday night and must hold a public hearing after that before enacting the measure.
Council President Flavio Rivera questioned why administration officials had waited more than nine months after the opening of the dispensary before proposing the tax. Rivera said the city had lost out on tens of thousands of dollars in revenue.
Economic Development Director Michael Powell blamed the delay on disruptions caused by COVID-19. But Councilwoman Maritza Davila said that was a poor excuse, pointing out that the facility had opened before the health crisis hit the region.
The tax imposed by the city would be in addition to regular state sales taxes, according to the proposed ordinance.