A transfer tax is hereby imposed on the sale of cannabis or
cannabis items by cannabis establishments in the Borough of Roselle.
The tax shall be imposed on receipts from the sale of cannabis items
from one cannabis establishment to another cannabis establishment
and receipts from the retail sales of cannabis items by a cannabis
retailer to retail consumers who are 21 years of age or older according
to the following rates:
A. Cannabis
cultivator (Class 1): 2% of receipts from each sale.
[Added 6-15-2022 by Ord. No. 2687-22]
B. Cannabis manufacturer (Class 2): 2% of receipts from each sale.
C. Cannabis wholesaler (Class 3): 1% of receipts from each sale.
D. Cannabis retailer (Class 5): 2% of receipts from each sale.
A user tax is hereby imposed on the value of each transfer or use of cannabis or cannabis items not otherwise subject to the transfer tax imposed pursuant to §
465-1, 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. The user tax rate shall be equivalent to the rate specified in §
465-1.
The cannabis transfer tax and user tax imposed by this chapter
is in accordance with the provisions of state law and shall be in
addition to any other tax or charge.
The cannabis transfer tax or user tax shall be collected or
paid, and remitted to the Borough 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 that consumer.
The cannabis 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.
Each cannabis establishment required to collect the transfer
tax or user tax imposed by this chapter shall be personally liable
for the tax imposed, collected, or required to be collected under
this chapter.
All revenues collected by a cannabis establishment from the
transfer tax or user tax imposed by this chapter shall be remitted
to the Borough's Chief Financial Officer on a quarterly basis according
to the same schedule as payment of municipal real property taxes.
The Borough shall enforce the payment of delinquent taxes under
this chapter in the same manner as provided for the collection of
municipal real property taxes. Any unpaid balance shall accrue interest
according to the same schedule and rates as delinquent property taxes.
In the event that the tax imposed by this chapter 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. Any such
lien shall be filed in the office of the Tax Collector and enforced
as a municipal lien in the same manner as all other municipal liens
are enforced.
Each cannabis establishment required to collect the transfer
tax or user tax imposed by this chapter shall provide to the Borough's
Chief Financial Officer an annual audited statement which clearly
identifies the calculation of gross receipts for the cannabis establishment
during the previous year. The annual audited statement shall be prepared
by a certified public accountant and shall be submitted to the Borough
within 90 days of the close of the fiscal year. Failure to timely
submit the annual audit may be considered grounds for nonrenewal of
the establishment's license.