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CPAs Believe Legalizing Cannabis Can Help Economy

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[dropcap class=”kp-dropcap”]E[/dropcap]vidence that New Jersey accountants are beginning to acknowledge the benefits of legalizing cannabis for the state’s economy can be seen in the results of a recent survey.

A survey conducted by the New Jersey Society of Certified Public Accountants (CPA) found that 48 percent of the CPAs who responded believe that legalizing cannabis for adult use would help the economy. Currently, the medical use of cannabis is allowed in the state. Last week, the state finally added opioid addiction to its list of qualifying conditions.

“The survey results show that our members, while equally divided over the concept of the legalization of adult-use marijuana, do see a benefit to the state’s economy,” said Ralph Albert Thomas, a CPA and CGMA as well as the CEO and executive director at NJCPA. “If indeed this bill is passed, CPAs will be in high demand to ensure the efficiency of such an industry.”

New Jersey residents have struggled with finances, highlighted in a report that indicates New Jersey taxpayers carried an average of over $60,000 in debt.  A growing industry that has an option for an investment returning revenue quickly would be a welcome business opportunity for those in the state.

Fifty-two percent of those surveyed supported cannabis legalization. More than 40 percent of that group supported a 12 percent tax similar to the one New Jersey senator Stephen Sweeney supports. Thirty percent of respondents support a tax between 12 and 25 percent, reflecting Gov. Phil Murphy’s call for a 25 percent tax on cannabis.

The division between cannabis tax plans highlights the battle for legalization in New Jersey, but hopefully, a third option can narrow the gap and speed up legalization hopes and plans.

A new proposal floating around between state leaders is the consideration to  tax cannabis by weight, rather than imposing an excise tax on the sale of cannabis. That way, if cannabis processes fluctuate as legal access becomes less restricted, the state gets the same amount in tax revenue regardless of the price of the cannabis sold.

 

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