Hoboken’s cannabis industry continues to expand as new dispensaries open and tax revenues grow. One of the promises of legalization was that cannabis tax revenue would be reinvested in the community, with Hoboken’s municipal code requiring that at least 75% of the city’s 2% cannabis transfer tax be dedicated to social justice initiatives. It remains unclear whether the city is complying with that commitment. Meanwhile, new approvals and ongoing legal cases continue to shape Hoboken’s cannabis landscape.

Carma Dispensary LLC Receives CRB and Planning Board Approvals

Carma Dispensary LLC (300 Observer Hwy) has received both Cannabis Review Board (CRB) and Planning Board approval. The CRB cleared the way for Hoboken’s sixth and final cannabis dispensary license in August, and in February the Planning Board approved the location for cannabis retail sales.

Carma will be located in the Newman Leather Building, with customer access from the Observer Highway entrance. The application must still receive final approval from the City Council, but given there were no major concerns raised during review, that step is expected to be procedural. The opening timeline will ultimately depend on how quickly the space can be built out.

Where Is the Cannabis Tax Revenue Going?

In January, former Mayor Bhalla signed an executive order establishing a Guaranteed Basic Income (GBI) Task Force to explore a pilot program providing direct, no-strings-attached monthly cash payments to financially vulnerable Hoboken residents. The initiative was expected to be funded in part through Hoboken’s Cannabis Transfer Tax revenue, along with potential grants and outside partnerships.

Article VI section 177-18 of our municipal code specifies that at least 75% of the 2% municipal cannabis transfer tax will be dedicated to social justice initiatives, cannabis education, and community policing efforts.

With a new administration now in place, it remains unclear whether Mayor Jabbour intends to move forward with the GBI Task Force — and whether cannabis transfer tax revenue would be used to fund it. What is clear is that this ordinance has been in place for years, yet there has been little public information regarding if these funds are being properly allocated.

Nature’s Touch dispensary Lawsuit Moves Forward

The lawsuit filed by Nature’s Touch Med NJ, LLC, a medical cannabis company, continues to move forward after the Appellate Division affirmed the lower court’s decision allowing the case to proceed. The litigation had been paused while the City of Hoboken and former Mayor Bhalla appealed a ruling that permitted the claim to move forward despite arguments that it was time lapsed.

The allegations first became public when former Hoboken Director Leo Pellegrini filed a wrongful termination lawsuit against the City. In that filing, Pellegrini alleged that in January 2022—after Hoboken’s Cannabis Review Board (CRB) approved a dispensary application for Nature’s Touch at 1035 Washington Street—Jersey City Mayor Steven Fulop called Mayor Bhalla during a lunch meeting attended by Pellegrini, Corporation Counsel John Allen, Assistant Business Administrator Jason Freeman, and Chief of Staff Vijay Chaudhuri.

According to the Nature’s Touch court filing, Fulop was upset about the CRB approval because the proposed location was near Story Dispensary, located at 14th and Hudson Streets and owned by Jacklyn Thompson, Fulop’s wife. The lawsuit alleges Bhalla blocked the Nature’s Touch application and in return Fulop arranged for Bhalla’s law firm to receive a Jersey City contract. In fact, a contract was given to Bhalla’s law firm, Schenck, Price, Smith & King  (JC Reso No 21-04 5) in March 2022, shortly after the dispensary application was quashed.

Nature’s Touch is pursuing a tortious interference claim against the City of Hoboken, Bhalla, Fulop, and Thompson. The case now returns to the trial court for further proceedings. Notably, the owner of the 1035 Washington Street property has filed a similar claim against the City, which the Appellate Division also allowed to proceed.

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HRC, Blue Violet and Planning Board Before the NJ Supreme Court

On March 3rd, attorneys representing HRC, Blue Violets, and the Hoboken Planning Board presented arguments before the seven justices of the New Jersey Supreme Court — the final step in a legal battle that has lasted nearly four years. The court’s decision could take several months.

In September, in an effort to avoid a Supreme Court ruling, the City Council passed an ordinance retroactively grandfathering Blue Violets into the law, allowing the business to bypass the city’s 600-foot school buffer requirement. That political maneuver did not prevent the Supreme Court from hearing the case on its merits. It remains unclear whether the justices will factor the city’s ordinance change into their final decision. For now, we will have to wait and see.

2025 Hoboken Cannabis Sales

Cannabis sales tax revenue for 2025 totaled $183,000 (excluding Village, which as of Feb.13th hadn’t paid 4th qtr taxes), a 43% increase over 2024, which is driven by an increase in the number of dispensaries open. Individual dispensary sales have remained consistent. Total cannabis-related revenue—including sales tax, license renewals, and community host agreement fees—reached $423k in 2025.