CJBS intricately understands the tax and accounting challenges of state-legal medical and adult-use cannabis businesses–and we are here to serve as your partner in navigating those challenges. The cannabis industry is unique, New Jersey’s cannabis program is unique, and so is your business. That’s why the CJBS Cannabis Team is focused on tailoring solutions to meet your company’s needs.
Whether you operate as a new or established cannabis cultivator, processor, and/or retail dispensary, our experts are here to help you grow and scale your business in today’s ever-competitive environment.
Both medical and adult-use cannabis are legal today in New Jersey. New Jersey’s strictly regulated medical cannabis program launched in late 2012. Today the program has 110,00 patients according to the Cannabis Regulatory Commission. In the first three quarters of 2022, medical sales totaled $176.2M.
The state’s adult-use market, which opened in April 2022, is projected to reach $2B by 2026. Today, 22 dispensaries serve the adult-use market.
Cannabis Taxes in New Jersey
Consumers who purchase adult-use cannabis in New Jersey from retailers and microbusinesses must pay the state’s standard sales tax rate of 6.625%. Municipalities in New Jersey also have the discretion to impose a local transfer tax of up to 2% on adult-use cannabis.
Cannabis cultivators in New Jersey must also charge a Social Equity Excise Fee (SEEF) tax of $1.52 per ounce of cannabis on the sale or transfer of adult-use cannabis to other cannabis establishments, excluding sales or transfers to other cultivators.
The CJBS team has deep experience in cannabis tax laws and accounting in 15+ cities and throughout the rest of New Jersey.
Working hand-in-hand with our cannabis clients, we provide a full suite of services—including compliance expertise, tax-saving solutions, and business strategies—to help you plan for long-term success.
Cannabis in New Jersey FAQs
When do I need to hire a cannabis accountant in New Jersey?
In the cannabis industry, it is always better to be proactive, rather than reactive. To help prevent your business from costly fees or even greater legal penalties, you should hire an accountant as soon as you submit your application for licensure.
Are there any financial requirements in the New Jersey license application?
Yes, cannabis businesses are subject to application fees, certification fees, licensing fees, change fees, among others. The NJ Cannabis Regulatory Commission has laid out those fees here.
What types of tax deductions can cannabis businesses take in New Jersey?
Tax exemptions are available for cannabis operators in New Jersey, including exemptions for purchases of production equipment or purchases for resale. (Source: NJ Treasury)
But overall, cannabis businesses are very limited on the types of deductions they can take beyond cost of goods sold (COGS) because of IRS Tax Code Section 280E. In some instances, businesses will be able to take additional deductions, such as the research and development (R&D tax credit, for example. Nuances like these illustrate why it is important to work with an accountant that is up to date on cannabis tax laws.
Our Core Values Guide Everything We Do
Our three core values — Trust, Collaboration, and Creativity — guide everything we do at CJBS, from our innovative client work to our interactions with each other. Our team has diverse personal backgrounds and specialties, but we share a common culture rooted in these values.
Trust
Trust is essential to all our work, but the stakes can be especially high for cannabis businesses, which face a higher risk of bankruptcy and IRS audits.
Collaboration
Close collaboration with our clients, matched with consistent and proactive communication, ensures that we’re always providing you with the insights, tools, and tactics for your cannabis tax and accounting needs.
Creativity
Creativity allows us to solve our cannabis clients’ unique challenges, such as having few traditional banking options and no bankruptcy protection.
Integrity
Our firm is guided by our employees’ integrity. In a burgeoning industry like cannabis, it is more important than ever to hold ourselves to high ethical standards, and follow through on what we say we’re going to do.
Transparency
We operate with transparency by communicating to our cannabis clients with unwavering candor, honesty, and respect.
Your Cannabis Accounting Experts
Matt Bergman, CPA and CJBS senior partner, has been with the firm since 1997 and has specialized in cannabis accounting and tax services since 2015, when an existing client won a license under the Illinois medical cannabis pilot program. Matt worked hand in hand with them to help grow and scale their business, safely and efficiently. That business grew rapidly and was soon acquired by one of the country’s largest MSOs (multistate operators), and they remain a CJBS client to this day. Matt works with clients from small startups to the country’s biggest MSOs. After growing up in Deerfield, IL and Boston, MA, Matt lives in Wilmette, IL with his wife, two children, and three dogs.
Ryan Guedel, CPA and CJBS partner, has been with the firm for 10+ years, and currently works with clients in cannabis, real estate, manufacturing, construction, and distribution. Ryan coordinates due diligence engagements, carries out audits and reviews, and works on business development and taxation for the firm. A devoted professional, Ryan gives his all with each and every client interaction. His personal motto is “hard work and more hard work.” Ryan currently resides in Wheeling, Ill., with his wife Julie, son Cole Jameson, and rescue dog Pinky. He likes the area for its proximity to the CJBS offices. His hobbies include cheering on the NY Yankees, mixed martial arts, and motorsports.
Stay current on the latest Cannabis industry developments and find out what it means for you and your business.
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