Block On Marijuana Sales Is 'Reckless, Irresponsible': Paramus Mayor

PARAMUS, NJ — As surrounding municipalities collect tax revenue from recreational marijuana sales, which started in April, Paramus passed an ordinance last year opting out of sales within its borders, and that is still in effect today. But Mayor Richard LaBarbiera, an outspoken supporter, is pushing for legalization in the jurisdiction, despite opposition.

In just the first month of sales, the state's dispensaries raked in $24 million from recreational cannabis, which is subject to the state sales tax of 6.625% and local and excise taxes, the New York Post reported. However, the Paramus Borough Council restricted sales in a vote in January last year and doubled down on opposition in an opt-out ordinance in June 2021, after Gov. Phil Murphy signed legislation to legalize.

Council members, like Maria Elena Bellinger, who voted to opt out, are now waiting to see the result and impact of legalization before coming to a conclusion on how they feel about it.

Bellinger said that, at the time, there were still a lot of unanswered questions regarding sale regulations, yet she is looking closely at other municipalities that are opening their doors to sales to see if she might need to reconsider her stance. The issue of sales has not yet been reintroduced in a council session, she said.

"It seems to me that towns that are offering sales are off to a promising start in terms of revenue, and there do not appear to be any concerns," she said. "If that were to continue, this might be something I reconsider. It is too early to make that decision right now."

Mayor LaBarbiera said that there is nothing to wait and see, and that the market would mean a new revenue stream for the town.

"To say, 'no,' to this type of windfall and not pass some of those gains on to taxpayers is reckless and irresponsible," LaBarbiera said. "It is a wasted fiscal opportunity for Paramus."

In 2020, Paramus voted 60-40 to approve the statewide measure to legalize marijuana, and LaBarbiera said that the council has a fiduciary responsibility to serve the citizens and taxpayers of the borough.

He said, also, that Paramus' tax base is 50% retail and that the council should always strive to make sure the borough has a thriving retail sector.

"I have always prided Paramus on leading the way, instead of following, and it is regretful that we are following, when we should be controlling and enjoying the financial benefit," he said.