Neptune brought in nearly $900K in legal weed money; here's how it's cutting the tax rate.
NEPTUNE - Revenue from cannabis taxation accounts for 1.5% of the $56.3 million municipal budget in 2024, marking the first time the township will use that money to invest in the town and helping to lower the tax rate.
In 2023 Neptune Township took in $871,788.43 in cannabis taxes. That money accounts for more of the 2024 budget than the capital improvement fund, which is $500,000.
Chief Financial Officer Michael J. Bascom provided the budget presentation during the Township Committee meeting on April 29, and credited the cannabis funds as one of the reasons for the lowered tax rate in the budget.
"This is a first-time investment where we are taking the funds that come in from cannabis tax and using it for parks and public safety programs. So, we start to see the benefit, not just of the revenue of cannabis but actually seeing improvements in the community add to that," Bascom said.
Legal marijuana: Why legal weed advocates aren't sold on Biden, DEA marijuana rescheduling
"In the end, being able to reduce our tax rate by 11.76% has been a critical element of this. So our tax rate will decrease from 58.6 cents per $100 (of assessed value) to 51.7 cents, so roughly about 7 cents (per tax payer)," Bascom said.
Capital projects included in the budget continued road pavements (shared costs with the utility companies), drainage improvements, improvements to the lakes, environmentally friendly flood reduction projects, as well as the aforementioned improvements to recreation, parks and public safety, Bascom said.
Revenue from cannabis taxation, hotel/motel taxes, and interest on investments were significant elements of surplus regeneration, according to the township's analysis of the 2023 budget.
NJ legal weed: Find your nearest dispensary for recreational, medical marijuana
Regenerated surplus was utilized in the 2023 budget and increased the overall municipal balance by $4.5 million to a total of $15 million as part of a plan offset new capital debt service without causing a tax spike.
The 2024 budget utilizes $5 million in surplus to manage revenue losses, lower the tax rate, and offset increased debt service payments. The remaining $10.5 million surplus balance will be left to absorb marketplace disruptions. The township's goal is to replenish the surplus to $9 million to maintain fiscal stability and tax rate stability.
Neptune is one of the first 10 municipalities, out of the 86 in Monmouth and Ocean counties, that passed an ordinance allowing cannabis sales. Its cannabis ordinance permits all classes of cannabis businesses, but sets a maximum of three dispensary licenses in the town.
'Some people need it': Mike Tyson promotes cannabis brand at Zen Leaf in Neptune
Zen Leaf Neptune opened to fanfare in April 2021, becoming just the second medical marijuana dispensary in Monmouth County after Garden State Dispensary in Eatontown. Later it added recreational sales.
Last year, new veteran-owned cannabis business, Victory Natural Farms LLC, received approval for a recreational cannabis license.
Cultivator Jersey Shore Ventures Group LLC, won approval for a cannabis manufacturing business in November 2022 when the Township Committee gave them the green light and the owner of Good Feeling Farms left Asbury Park specifically for Neptune Township because the city was tied up in cannabis litigation.
Charles Daye is the metro reporter for Asbury Park and Neptune, with a focus on diversity, equity and inclusion. @CharlesDayeAPP Contact him: CDaye@gannettnj.com
This article originally appeared on Asbury Park Press: NJ legal weed: Neptune cutting tax rate with cannabis money
