The Jersey City Council introduced an ordinance diverting cannabis tax revenue to the general operating budget to address the city’s massive budget deficit at last night’s marathon meeting.
By Daniel Ulloa/Hudson County View
“Several months ago, and I want to thank the corporation counsel, when the subject of cannabis revenue and taxes was on the agenda … I asked to see if these monies that the City receives … cannabis tax revenue … whether it could be diverted and directed to the general operating budget,” Councilman at-Large Rolando Lavarro, the ordinance sponsor explained.
“This ordinance, being introduced tonight, does something about our tax situation. It doesn’t solve it. Not by a long shot. It frees over $1 million in cannabis tax revenue and directs it to our general operating budget. Dollars that will help close our deficit without raising … taxes on our Jersey City residents.”
Lavarro, who co-sponsored a separate measure asking the comptroller to investigate prior city finances, drew applause from the packed council chambers when he added that “we owe it to the people of Jersey City to think creatively” due to their severe budget woes.
“… I hope you will pass this. It’s only a little over a $1 million, but every dollar makes a difference. I tell everybody here as well, as the public at large, I intend to keep turning over every stone until we exhaust every single option that is available to us,” he concluded before the vote.
The Jersey City Council unanimously approved the ordinance 9-0 on first reading without further comment.
According to the ordinance, initially, the money was initially earmarked for the board of education and the Affordable Housing Trust Fund.
At one point, there was also supposed to be a “cannabis fund” governed by a Cannabis Fund Committee that would fund social equity programs.
According to the ordinance, the tax is imposed on:
1. “Receipts from the sale of cannabis by a cannabis cultivator to another cannabis cultivator;
2. Receipts from the sale of cannabis items from one cannabis establishment to another cannabis establishment;
3. Receipts from the retail sale of cannabis items by a cannabis retail to retail consumers who are twenty-one (21) years of age or older.”
They wanted to impose the following rates:
1. “Two percent of the receipts from each sale by a cannabis cultivator
2. Two percent of the receipts from each sale by a cannabis manufacturer
3. One percent of the receipts from each sale by a cannabis wholesaler.
4. Two percent of the receipts from each sale by a cannabis retailer.”
Under former Mayor Steve Fulop, the city’s summer youth program received $500,000 last year from cannabis tax revenue.
