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Municipal control, uneven revenue: mayors and the League of Municipalities urge local discretion on cannabis
Summary
Municipal officials and the League of Municipalities told a legislative committee that local control has let towns tailor cannabis rules to community needs but produced wide differences in fees and revenues; officials flagged auditing, application costs, and enforcement of unlicensed sellers as persistent problems.
Municipal leaders and the New Jersey League of Municipalities told the Assembly Oversight, Reform and Federal Relations Committee on Thursday that local control over cannabis licensing has allowed different towns to choose approaches that fit their communities, but has produced wide variation in fees, enforcement costs and revenue.
Frank Marshall, associate general counsel for the League of Municipalities, said many towns initially banned cannabis establishments and later adopted “thoughtful ordinances” to permit them. He said municipalities rely on two local charges—a transfer tax capped around 2% and a user tax—and that some vertically integrated operators are taking aggressive positions to avoid paying municipal transfer…
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