[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.