[8-11-2021 by Ord. No. 11-2021]
a. 
Purpose. It is the purpose of this chapter to implement the Jake Honing Compassionate Use Medical Cannabis Act, P.L. 2019, c. 153, N.J.S.A. 24:6I-1 to 30 and to implement the New Jersey Cannabis Regulatory, Enforcement Assistance, and Marketplace Modernization Act P.L. 2021, c. 16, N.J.S.A. 24:6I-31 to 56 which authorize the governing body of a municipality to adopt an ordinance imposing a transfer tax that is capped at 1% of wholesale activities and 2% of cultivation, processing, and retail activities.
b. 
The cannabis transfer tax in East Newark 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 Borough. This tax shall be imposed on:
1. 
Receipts from the sale of cannabis or cannabis items from one cannabis establishment to another cannabis establishment, including cultivators and manufacturers;
2. 
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.
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 Borough to any of the other license holder's establishments, whether located in the Borough or another municipality.
d. 
A 1% transfer tax shall be collected from receipts from each sale by a cannabis wholesaler located within the geographical boundaries of the Borough.
The transfer tax or user tax imposed by this chapter shall be in addition to any other 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.