[HISTORY: Adopted by the Mayor and Council of the Borough of South Plainfield 8-16-2021 by Ord. No. 2207. Amendments noted where applicable.]
[Added 8-16-2021 by Ord. No. 2207]
A. 
A tax shall be imposed on receipts from the sale of cannabis items from one cannabis establishment to another cannabis establishment.
(1) 
A one percent (1%) transfer tax shall be collected from receipts from each sale by a cannabis wholesaler located within the geographical boundaries of the Borough.
(2) 
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 other license holder' s establishments, whether located in the Borough or another municipality.
B. 
The transfer tax or user tax imposed by this section shall be in addition to any other tax 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 Sale 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.