Florio Perrucci Partner, Seth Tipton, Comments on New Jersey Adult-Use Cannabis
Posted August 31, 2021
Seth Tipton, a Partner of Florio Perrucci Steinhardt Cappelli Tipton & Taylor, was recently quoted in the New Jersey Law Journal. Tipton, co-Chair of the New Jersey State Bar Association Cannabis Law Special Committee, comments in the article, With New Regs in Place, Cannabis Lawyers Expect More Municipalities Will Opt In.
In the article, Tipton says, “I spend a lot of time trying to make either the municipal attorney or the governing body comfortable with what the stated law is since they’re having to make some very hard decisions and there’s a lot to learn.” He adds, “The ratable and up to 2% transfer tax in sales goes directly to the municipality. We’re talking substantial amounts of money at stake.”
And when discussing a municipality’s options when considering adult-use cannabis facilities, Tipton says, “The obvious easy answer is that towns can simply ban it. Many towns have done that because you can obviously walk that ban back at a later date. Other towns and cities have taken the approach of just making [selling cannabis] permissible within certain zones. Which is consistent with what happens if you take no action … and also relatively straightforward.”
Tipton also discusses licensing issues that will most likely impact municipalities including some going through a competitive mini-application process. “Every time they’ve done these competitive licensing processes at the state level there’s been resulting litigation,” added Tipton. “So if you do that at the municipal level, how is the result going to be any different? There is a good chance the selection criteria is going to be challenged” with a lawsuit.
These are exciting times for businesses wanting to enter the New Jersey Cannabis market. For more information about Cannabis Law in New Jersey, please contact Seth Tipton.
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