[Added 11-18-2020 by Ord. No. 6PSF-N, 11-18-2020]
This Chapter shall be known and cited as the "Medical Cannabis Transfer Tax".
[Added 11-18-2020 by Ord. No. 6PSF-N, 11-18-2020]
There shall be imposed in the City of Newark a tax of 2% on all sales or transfers of cannabis products from a Medical Cannabis Dispensary, as authorized by N.J.S.A. 24:6I-10(i) of the CUMCA. This tax shall be in addition to any other tax or fee imposed pursuant to statute, state and federal or local ordinance or resolution by any government entity upon a Medical Cannabis Dispensary.
If the State passes a law authorizing the City to collect a 2% tax on the sale or transfer of recreational cannabis, then said 2% tax shall be authorized and in full force and effect without the necessity of passing a separate ordinance.
[Added 11-18-2020 by Ord. No. 6PSF-N, 11-18-2020]
As used in this chapter:
All parts of the plant genus Cannabis, whether growing or not; the seeds thereof; and every compound, manufacture, salt, derivative, mixture, or preparation of the plant or its seeds, except those containing resin extracted from the plant; but shall not include the mature stalks of the plant, fiber produced from the stalks, oil or cake made from the seeds of the plant, any other compound, manufacture, salt, derivative, mixture, or preparation of such mature stalks, fiber, oil, or cake, or the sterilized seed of the plant which is incapable of germination. "Cannabis" shall not mean hemp, or a hemp product cultivated, handled, processed, transported, or sold pursuant to the "New Jersey Hemp Farming Act," P.L.2019, c.238 (C.4:28-6 et al.).
The Jake Honing Compassionate Use Medical Cannabis Act, N.J.S.A. 24:6I-1 et seq.
An organization issued a permit by the commission that authorizes the organization to: purchase or obtain medical cannabis and related supplies from medical cannabis cultivators; purchase or obtain medical cannabis products and related supplies from medical cannabis manufacturers; purchase or obtain medical cannabis, medical cannabis products, and related supplies and paraphernalia from other medical cannabis dispensaries and from clinical registrants; deliver, transfer, transport, distribute, supply, and sell medical cannabis and medical cannabis products to other medical cannabis dispensaries; furnish medical cannabis, including medical cannabis products, to a medical cannabis handler for delivery to a registered qualifying patient, designated caregiver, or institutional caregiver consistent with the requirements of Subsection i. of Section 27 of P.L. 2019, c.153 (C. 24:6I-20); and possess, display, deliver, transfer, transport, distribute, supply, sell, and dispense medical cannabis, medical cannabis products, paraphernalia, and related supplies to qualifying patients, designated caregivers, and institutional caregivers. A medical cannabis dispensary permit shall not authorize the permit holder to cultivate medical cannabis, to produce, manufacture, or otherwise create medical cannabis products.
[Added 11-18-2020 by Ord. No. 6PSF-N, 11-18-2020]
All revenues collected from the tax shall be remitted to the Director of the Department of Finance, in quarterly installments, on or before those dates when real property tax payments are due to the municipality under State law.
[Added 11-18-2020 by Ord. No. 6PSF-N, 11-18-2020]
Every person required to collect any tax imposed by this chapter, shall be personally liable for the tax imposed, collected or required to be collected hereunder. Any such person shall have the same right in respect to collecting the tax from his/her customer at the same time of every transaction and payable at the same time.
[Added 11-18-2020 by Ord. No. 6PSF-N, 11-18-2020]
No person required to collect any tax hereunder shall advertise or hold out to any person or to the public in general, in any manner, directly or indirectly, that the tax will not be separately charged and stated to the customer or that the tax will be refunded to the customer.
[Added 11-18-2020 by Ord. No. 6PSF-N, 11-18-2020]
The City shall enforce the payment of delinquent Medical Cannabis Transfer Taxes in the same manner as provided for municipal real property taxes.
[Added 11-18-2020 by Ord. No. 6PSF-N, 11-18-2020]
The operator of the business shall permit, upon request, examination and audit of the books, contracts, records, documents and papers of the business by representatives duly authorized by the City of Newark for purposes of verifying the required remittance to the City. Such examinations or audits shall be made during reasonable hours of the business day, in the presence of the operator of the business or his/her agent.
[Added 11-18-2020 by Ord. No. 6PSF-N, 11-18-2020]
a.
The Director of the Department of Finance is authorized to promulgate rules and regulations consistent with this chapter, pertaining to the collection, payment, accounting and auditing of the medical cannabis tax.
b.
A copy of this shall be transmitted to the State Treasurer and to every existing Medical Cannabis Dispensary now existing in the City and immediately upon the application of a new Medical Cannabis Dispensary.
[Added 11-18-2020 by Ord. No. 6PSF-N, 11-18-2020]
In an action or proceeding brought to collect the tax imposed by this chapter, the Director of the Department of Finance shall be joined as a party.
[Added 11-18-2020 by Ord. No. 6PSF-N, 11-18-2020]
Any application for a license to operate an Alternative Treatment Center for dispensing medical cannabis under CUMCA or a license to operate a recreational cannabis business shall be eligible to be considered for a Five-Year Tax Exemption and Abatement (Section 10:23-1 et seq.) and a Long-term Tax Exemption and Abatement (Section 10:24-1 et seq.) provided in this Title if the requirements are met.