Municipal Information

Municipal Considerations

The New Jersey Cannabis Regulatory Commission released the first set of regulations on August 19, 2021. For details, review the August 26, 2021 Special Update from NJLM. The regulations were proposed for readoption with amendments. 

CRC Regulations answer Frequently Asked Questions for Municipalities on the cannabis market components.

NJAC Personal Use file shares insights and specifics on the Personal Use Cannabis Rules which expire August 19, 2022.


  • Opt-In or Opt-Out Timeline: Municipalities had 180 days (until August 21, 2021) to take action to either prohibit or limit the number of cannabis establishments, distributors, or delivery services; the location, manner, and times of operation, and establishing civil penalties for violation of ordinances.
  • Existing Ordinances: Any existing municipal ordinances regulating or prohibiting cannabis are null and void. They must be readopted to be effective.
  • No Action Result: If municipalities do not take action within 180 days, any class of cannabis establishment or distributor will be permitted to operate in the municipality, and depending on the type of establishment, be considered a permitted use in certain zones.
  • 5-Year Periods: A municipality that fails to enact an ordinance prohibiting the operation of one or more classes of cannabis establishments, before August 21, 2021, is precluded from passing an ordinance banning the operation for a period of 5 years. After this 5-year period, a municipality has another 180-day window to prohibit or limit cannabis operations, but this action only applies prospectively. Those who initially opt-out can opt-in at any time.
  • Local Cannabis Tax: Municipalities can enact by ordinance a local cannabis tax that cannot exceed 2% for cannabis cultivator, manufacturer, and/or retailer; and 1% for wholesalers. The tax percentage is based on the receipts for each sale and is paid directly to the municipality in the manner prescribed by the municipality. Any delinquencies are treated the same as delinquent property taxes. The tax cannot apply to delivery services to consumers or transfers for the purpose of bulk transportation.
  • Delivery Rights: A municipality cannot prohibit the delivery of cannabis items and related supplies by a delivery service within their jurisdiction.
  • Civil Rights: When responding to a call related to underage consumption or possession of cannabis or alcohol can be guilty of a crime of official deprivation of civil rights if knowingly violating the provisions of the new law regarding interactions with underage persons.