Division of TaxationOn March 30, 2026, the Governor signed P.L. 2026, c.7. The law amends P.L. 2025, c.215 and revises restrictions on the retail sales of hemp products and intoxicating hemp beverages (IHB) through November 2026.
The law places an excise tax requirement of $3.75 per gallon on intoxicating hemp beverages. This tax applies to the wholesale sale of these beverages within New Jersey and to any deliveries of intoxicating hemp beverages made to New Jersey locations. The tax remains effective from April 13, 2026, to November 13, 2026. This provision remains unchanged by the most recent law amendments.
Wholesalers will need to file the Intoxicating Hemp Beverage Wholesaler Tax Return, Form IHB-1 . The Form IHB-1 and related payment must be mailed to the PO Box address on the form. The IHB-1 form and payment cannot be submitted electronically.
The due date of Form IHB-1 and any related payment is December 21, 2026.
Questions related to the completion of Form IHB-1 can be directed to the Division of Taxation at NJHempBeverageExciseTax@treas.nj.gov.
For More Information visit the Cannabis Regulatory Commission’s IHB FAQ
Plenary Retail Distribution licensees (i.e., liquor stores/bars) will need to report the Sales and Use Tax from intoxicating hemp beverages for the second quarter, third quarter and fourth quarter of 2026 on Form ST-50C in the New Jersey Tax Portal. For these three quarters, Form ST-50C, Sales and Use Cannabis Quarterly Return, will be filed by Plenary Retail Distribution licensees instead of the Form ST-50.
How to File and Pay Your Sales and Use Tax (April 2026 - December 2026)
The New Jersey Tax Portal contains line-by-line instructions for completing Form ST-50C. The instructions include information for reporting regular sales as well as intoxicating hemp beverage sales. Gross receipts from the sales of intoxicating hemp beverages will be reported on the “Recreational/Medical Cannabis” tab of the ST-50C.
Step 1: Select the Correct Account Type
Step 2: Complete Form ST-50C
Regular Sales Tab
Recreational/Medical Cannabis Tab
Step 3: Submit the Return
Important: Monthly Payment for Sales and Use/Cannabis
If you are paying a monthly remittance, select Quarterly Voucher only. Do not choose Monthly Voucher.
Beginning on May 31, 2026, and ending on November 13, 2026, plenary wholesale licensees, their subsidiaries, and plenary retail distribution licensees may only distribute IHB products containing no more than 5 mg of total tetrahydrocannabinol (THC) per serving/10 mg per container. Sales must be accompanied by a valid certificate of analysis and be brand-registered. See Administrative Order AO-2026-02 for additional requirements.
Plenary wholesale licensees, their subsidiaries, and plenary retail distribution licensees that were sell intoxicating hemp beverages above the dosage limit of 5 milligrams (mg) of total THC per serving or 10 mg of total THC per container now have an extended compliance deadline of May 31, 2026, to comply with regulations, some of which include selling or liquidating all IHB products that exceed those limits. The original deadline was April 13, 2026.
As of April 13, 2026, gas stations and bodegas can no longer sell IHB products.
The law creates a temporary exception that remains valid until May 31, 2026, which allows specific groups to possess or transport intermediate hemp-derived cannabinoid products that contain THC concentrations exceeding 0.3%, provided they meet the conditions outlined in the law.
Beginning on November 14, 2026, plenary wholesale licensees, their subsidiaries, and plenary retail distribution licensees (liquor stores) will no longer be permitted to sell IHB products. Any hemp beverage exceeding 0.4 mg of total THC per container will be regulated as a cannabis item and can only be sold by licensed Cannabis Regulatory Commission (CRC) retailers.
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