Newark Is Paving The Way For Marijuana Businesses: See The Plan

NEWARK, NJ — When the recreational marijuana industry arrives in Newark, how will it change New Jersey's largest city? That was the question on the minds of many residents earlier this week, as officials released information about a local ordinance that would allow cannabis businesses to set up shop.

The Newark City Council has given a preliminary green light to an ordinance that would pave the way for several types of marijuana business, including retail shops that could sell recreational cannabis to consumers.

Newark municipal officials gave some more insight into the city’s ordinance in virtual events on Friday and Monday (watch the videos below).

The new ordinance places heavy regulations on cannabis businesses, including security, management of odors and zoning. Newark officials would be allowed to randomly inspect a cannabis business to ensure it’s following the local laws.

There would be a limit on the number – and types – of cannabis businesses. There would be a maximum of two "indoor consumption areas" allowed.

Newark’s ordinance would also restrict the hours of business for cannabis shops, although the city can't regulate out-of-town delivery businesses who visit customers in Newark, as per state law.

There would be an annual fee for all cannabis licenses. Sales taxes would be set at the following rates:

• Cultivator – 2 percent
• Manufacturer – 2 percent
• Wholesaler – 1 percent
• Retailer – 2 percent

Here's where cannabis businesses would be allowed to set up shop under the ordinance.

New Jersey voters approved recreational marijuana in November 2020. When state lawmakers crafted the legalization bill, they left room for municipalities to ban or limit the number of cannabis businesses operating in their communities. Read More: 5 Things You Need To Know About Marijuana Legalization In NJ

Local governments have until Aug. 21 to pass a law banning cannabis businesses. They will be able to repeal or alter their ordinances afterwards. If they don't pass an ordinance in that time, not only will marijuana businesses be allowed to operate, but local officials won't have another chance to issue a ban for a period of five years. Read More: Marijuana Is Legal In NJ. But Can Towns Still Ban It?

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