[Added 7-15-2021 by Ord. No. 598-2021]
a.
The Borough shall impose transfer taxes upon the following cannabis
sales and at the following transfer tax rates: 2% of the receipts
from each sale by a cannabis cultivator; 2% of the receipts from each
sale by a cannabis manufacturer; 1% of the receipts from each sale
by a cannabis wholesaler.
b.
The Borough shall impose, at the equivalent transfer tax rates, a
user tax on any concurrent license holder operating more than one
cannabis establishment. Such user tax 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 paragraph a. hereinabove,
from the license holder's establishment that is located in the
Borough to any other license holder's establishments, whether
located in the Borough or another municipality.
c.
Such transfer tax or user tax imposed, as provided above, shall be
in addition to any other tax imposed by law or fee established by
the Borough. Any transaction for which such transfer tax or user tax
is imposed, or could be imposed, shall be exempt from the tax imposed
under the "Sales and Use Tax Act" P.L. 1966, c. 30 (C. 54:32B-1 et.seq).
d.
Such transfer or user tax shall be collected or paid and remitted
to the Borough by the licensed cannabis establishment from the licensed
cannabis establishment purchasing or receiving the cannabis or cannabis
item, as the case may be.
e.
The transfer 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 the cannabis item.
f.
Every cannabis establishment required to collect a transfer or user
tax imposed by 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 the transfer tax or user tax from another
cannabis establishment as if the transfer tax or user tax was a part
of the sale and payable at the same time, or with respect to the non-payment
of the transfer tax or user tax by the cannabis establishment or consumer,
as if the transfer tax or user tax was a 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.
g.
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 or
stated to another cannabis establishment, or that the transfer tax
or user tax will be refunded.
h.
All revenues collected from a transfer tax or user tax imposed by
this section shall be remitted to the Borough's Chief Financial
Officer in the manner provided by the Borough for such remittances.
The Borough Chief Financial Officer shall collect and administer any
transfer tax or user tax imposed by this section. The Borough shall
enforce the payment of delinquent taxes or transfer fees imposed by
this section in the same manner as provided for Borough real property
taxes.
i.
In the event that the transfer tax or 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 taxes due and owing in the same year.
j.
The Borough Clerk shall file in the office of the Tax Collector a
statement showing the amount and due date of the unpaid balance and
identifying the lot and block number of the parcel of real property
that comprises the delinquent cannabis establishment's premises.
The lien shall be enforced as a municipal lien in the same manner
as all other Borough liens are enforced.
k.
Definitions. As used in this section, each of the following terms
shall mean the same as each term is defined in the Act.[1]
1.
Cannabis.
2.
Cannabis cultivator.
3.
Cannabis establishment.
4.
Cannabis grower.
5.
Cannabis items.
6.
Cannabis manufacturer.
7.
Cannabis wholesaler.
8.
Premises.
[1]
Editor's Note: N.J.S.A. 24:6I-31 et seq., New Jersey
Cannabis Regulatory, Enforcement Assistance, and Marketplace Modernization
Act.
