The interior of Monteverde NJ, which opened last February. (Photo by Brian Donohue. Click to enlarge.)
By BRIAN DONOHUE
When Red Bank and towns across the state were debating whether to allow recreational cannabis shops within their borders after New Jersey voters ok’d legal weed in 2020, there was one factor proponents argued made it a win for towns and cities: the tax revenue.
Really, though, everyone was flying blind. With a brand new market being created, no one had any idea how much revenue the two-percent local tax retail tax (and one percent wholesale tax) would actually send to town coffers.
Now, a clearer picture is emerging after Red Bank completed its first full quarter (well, almost) with all three of its licensed cannabis operators up and running at the end of 2024.
For the last quarter of 2024, the borough received $86,106 in cannabis tax revenues, according to data received by redbankgreen through an Open Public Records Act request.
The grand opening of Frosted Nug last September.
Mayor Billy Portman said he was “thrilled with the early tax revenue numbers. “
The figure remains a somewhat partial picture because one retailer, Canopy Crossroad, opened for business two weeks after the fourth quarter of the year had begun.
A portal between the storage room and cashier area is built into a moss and mushroom rendering of the Canopy Crossroad logo inside the store.
By far the biggest payer was the most established of the three retailers, Monteverde NJ, which opened last February and paid $73,000 of the total. Frosted Nug, which opened in September at 22 Bridge Avenue, paid $8,772. Newcomer Canopy Crossroad paid $4,082.
By ordinance, the number of licensed retailers is capped at three, with one licensed wholesale operation also allowed. The Planning Board approved an application for a wholesale growing facility on East Leonard Street in 2022.
The early revenue numbers suggest that if the market remains steady and the two more recently opened businesses grow apace, the town could expect to see upwards of $344,000 in revenue raised annually.
But Borough Manager Jim Gant said he was keeping projections more conservative, in the range of $200,000 a year for now. With two of the three retailers open for just a few months, it remains to be seen how the local market will pan out.
As per an ordinance passed by the borough council last year, all money raised from the cannabis retail tax will go to the parks and recreation trust fund.
The fund, which includes borough funding, donations from the public, program fees, and some Marine Park parking permits issued by the borough, is used to fund capitol improvements, acquisition of land and open space, maintenance of public spaces, and facility upgrades.
Deputy Mayor Kate Triggiano added, “Having these funds allocated to the recreation trust allows for better visioning and planning and financing of our public facilities and spaces.”
Have a news tip or story idea? redbankgreen editor Brian Donohue may be reached via email at [email protected] or by calling or texting 848-331-8331. Do you value the news coverage provided by redbankgreen? Please become a financial supporter if you haven’t already. Click here to set your own level of monthly or annual contribution.
