[Added 5-18-2021 by Ord. No. 2021-9]
a. 
The cannabis transfer tax in Scotch Plains shall be fixed at a uniform percentage rate of 2% on all sales or transfers of cannabis products from any of the cannabis establishments that are located within the geographical boundaries of the Township. This tax shall be imposed on:
1. 
Receipts from the sale of cannabis by a cannabis cultivator to another cannabis cultivator;
2. 
Receipts from the sale of cannabis items from one cannabis establishment to another cannabis establishment;
3. 
Receipts from the retail sales of cannabis items by a cannabis retailer to retail consumers who are 21 years of age or older; or any combination thereof.
b. 
A 1% transfer tax shall be collected from receipts from each sale by a cannabis wholesaler located within the geographical boundaries of the Township.
c. 
A user tax is hereby also established at the same rate 2% of the transfer tax contained herein and shall be imposed on the value of each transfer or use of cannabis or cannabis items not otherwise subject to the transfer tax imposed pursuant to P.L. 2021, c. 16, from the license holder's establishment that is located in the Township to any of the other license holder's establishments, whether located in the Township or another municipality.
d. 
The transfer tax or user tax imposed by this section shall be in addition to any other tax imposed by law. Any transaction for which the transfer tax or user tax is imposed, or could be imposed pursuant to this section, other than those which generate receipts from the retail sales by cannabis retailers, shall be exempt from the tax imposed under the Sales and Use Tax Act (N.J.S.A. 54:32B-1 et seq). The transfer tax or user tax will be assessed and collected pursuant to established state law and administrative rules and regulations regarding same.
[Added 10-18-2022 by Ord. No. 2022-25]
a. 
The transfer tax or user tax imposed by this article shall be collected or paid, and remitted to Scotch Plains Township by the cannabis establishment from the cannabis establishment purchasing or receiving the cannabis or cannabis item or from the consumer at the point of sale, on behalf of the municipality by the cannabis retailer selling the cannabis item to the consumer. The transfer tax or user tax shall be stated, charged, and shown separately on any sales slip, invoice, receipt, or other statement or memorandum of the price paid or payable, or equivalent value of the transfer, for the cannabis or cannabis item.
b. 
Every cannabis establishment required to collect a transfer tax or user tax imposed by ordinance pursuant to this section shall be personally liable for the transfer tax or user tax imposed, collected, or required to be collected under this section. Any cannabis establishment shall have the same right with respect to collecting tax or user tax from another cannabis establishment or the consumer as if the transfer tax or user tax was part of the purchase price of the cannabis or cannabis item or equivalent value of the transfer of the cannabis or cannabis item and payable at the same time; provided, however, that the Chief Financial Officer of Scotch Plains Township shall be joined as a party in any action or proceeding brought to collect the transfer or user tax.
c. 
No cannabis establishment required to collect a transfer tax or user tax imposed by this section shall advertise or hold out to any person or to the public in general, in any manner directly or indirectly, that the transfer tax or user tax will not be separately charged and stated to another cannabis establishment or the consumer, or that the transfer tax or user tax will be refunded to the cannabis establishment or the consumer.
[Added 10-18-2022 by Ord. No. 2022-25]
a. 
All revenues collected from the transfer tax or user tax imposed by this article shall be made payable to the Township of Scotch Plains and remitted to the Chief Financial Officer on a quarterly basis, together with a statement on a form prescribed by the Chief Financial Officer, showing gross receipts and taxes collected. Payments shall be due no later than April 10, July 10, October 10 and January 10, or if that date is a Saturday, Sunday or holiday, on the next business day.
b. 
A cannabis establishment operating within the Township of Scotch Plains shall file on an annual basis no later than February 1 of each year a financial report from an independent accountant certifying as to the annual revenues for the preceding year.
c. 
There shall be a ten-day grace period for the payment of said transfer tax and/or user tax which will be in the same manner as the ten-day grace period typically permitted for property tax payments. There shall be no extension of the cannabis transfer tax/user tax grace period without a resolution of the governing body authorizing a specific extension.
d. 
All payments to Scotch Plains Township shall be accompanied by certain supporting data and made in a manner prescribed by the Chief Financial Officer.
e. 
The Chief Financial Officer shall collect and administer the local cannabis transfer tax and user tax imposed by this article. The Township shall enforce the payment of delinquent local cannabis transfer tax and user tax in the same manner and at the same interest rates as provided for municipal real property taxes.
[Added 10-18-2022 by Ord. No. 2022-25]
a. 
If the local cannabis transfer tax and user tax imposed by this section is not paid as and when due by a cannabis establishment, the unpaid balance, and any interest accruing thereon, shall be a lien on the parcel of real property comprising the cannabis establishment's premises in the same manner as all other unpaid municipal taxes, fees, or other charges. The lien shall be superior and paramount to the interest in the parcel of any owner, lessee, tenant, mortgagee, or other person, except the lien of municipal taxes, and shall be on a parity with and deemed equal to the municipal lien on the parcel for unpaid property taxes due and owing in the same year. In the event of a delinquency, the Chief Financial Officer shall file with the Tax Collector by December 31 of the pretax year a statement showing the amount of the unpaid balance and identifying the lot and block number of the parcel of real property that comprises the delinquent cannabis business. The lien shall be enforced as a municipal lien in the same manner as all other municipal liens are enforced.