New Jersey Tax Updates

New Jersey has new taxes and existing taxes to be aware of.

Recreational Cannabis

Cannabis businesses must comply with New Jersey tax requirements, including the collection, reporting, and remitting of Sales & Use Tax and the new Social Equity Excise Fee.

Consumer Facts

Anyone age 21 or older may now legally purchase recreational cannabis and cannabis-related products in New Jersey. A retail purchase is assessed at the standard State Sales Tax rate of 6.625%. Consumers also can be charged a locally imposed Transfer Tax of up to 2%, which is administered by the municipality where the dispensary is located.

Medical cannabis is currently taxed at a reduced Sales Tax rate of 2%, which will phase out to 0% on July 1, 2022.

2018 Homestead Benefit Credits and Checks Being Issued Now

The 2018 Homestead Benefit Credits were issued on May 2nd. Homeowners eligible for the credit can expect to see that credit reflected on their property tax bill.

Homeowners eligible for a check in lieu of credit can expect to receive their payment by mail shortly.

Buying, Selling or Transferring Real Estate in New Jersey

Taxpayers should be aware of certain taxes, fees, and/or procedures that may arise in connection with buying, selling, or transferring real property in New Jersey. This link provides information on the GIT/REP, Realty Transfer Fee (RTF), Controlling Interest Transfer Tax (CITT), and Bulk Sales.

Property Assessments and Revaluations

The Division’s Property Administration works with local and municipal governments to facilitate assessments and valuations to determine property tax appropriately. The State Constitution requires taxes to be assessed under uniform rules.

Property tax questions are typically handled by municipal officials. However, our website can help to identify the correct steps needed for proper tax assessments or property valuations.

CBT Standardized Return to Replace Existing Returns for Special Groups

A new, simplified standardized return is being created for combined groups, banking corporations, financial services corporations, and separate return filers to replace the CBT-100U, BFC-1, and CBT-100 they currently file. However, implementation of the new form may be delayed until Tax Year 2024.

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