[Added 8-18-2021 by Ord. No. 2021-09]
Whenever the Cannabis Regulatory Commission established by the
Act (the “Commission”) forwards to the Township of Frelinghuysen
any application for initial licensing or renewal of an existing license
for any cannabis establishment, distributor, or delivery service pursuant
to section 19 of the Act or for a cannabis consumption area pursuant
to section 28 of P.L.2019, c.153 (C.24:6I-21), or otherwise solicits
the position of the Township on any matter related to cannabis-related
activities within the Township, or upon the request of an applicant
for or holder of such license, the Township Committee shall determine
whether the application complies with the Township’s restrictions
on the number of cannabis establishments, distributors, or delivery
services, and on their location, manner, or times of operation, and
promptly inform the Commission, applicant for or holder of a licnese
whether the application complies with same and whether it either approves
or denies each application or other request for municipal authorization
forwarded to it. Notwithstanding the forgoing, nothing herein shall
prohibit any elected or appointed official or employee from expressing
their opinions or views on cannabis-related matters in their personal
or individual official capacity, or endorsing an applicant for or
holder of a license issued by the Commission, provided that such official
shall not represent that their opinions or views are those of the
Township unless based on a duly adopted ordinance or resolution of
the Township Committee, or other action of a majority of the Township
Committee.
Editor's Note: "The Act" refers to P.L. 2021, c.16, known as
the “New Jersey Cannabis Regulatory, Enforcement Assistance,
and Marketplace Modernization Act” as cited in Ord. No. 2021-09.
[Added 8-18-2021 by Ord. No. 2021-09]
A cannabis cultivation or manufacturing facility issued a permit
or license by the State of New Jersey and operating in Frelinghuysen
Township under this chapter shall at all times comply with the following
operational requirements:
a.
A cannabis facility shall comply with the Land Development Ordinance,
the Construction Code and the Township Code, including but not limited
to its property maintenance provisions, at all times.
b.
The facility must hold at all times a valid license or permit issued
by the State of New Jersey to undertake cannabis cultivation and manufacturing
activities at the permitted property. A State issued license is valid
only for the location identified on the license and until the expiration
date printed on the license and cannot be transferred to another location
in the Township without a new application. The State issued license
shall be prominently displayed inside the permitted premises in a
location where it can be easily viewed by law enforcement and administrative
authorities.
c.
Cultivation and manufacturing operations shall be conducted solely
within the permitted premises on the permitted property. No cultivation
or manufacturing facility shall be permitted to operate from a moveable,
mobile or transitory location, except for the permitted and transportation
of cannabis and cannabis products to and from the facility pursuant
to the terms of the State license or permit.
d.
No person under the age of 18 shall be permitted to enter into the
permitted premises without a parent or legal guardian.
e.
A cannabis cultivation or manufacturing facility shall at all times
maintain a security system that meets State law requirements, and
shall also include:
1.
Security surveillance cameras installed to monitor all entrances
along with the interior and exterior of the permitted premises;
2.
Burglary alarm systems which are professionally monitored and operated
24 hours a day, 7 days a week;
3.
All security recordings and documentation shall be preserved for
at least 30 days and made available to law enforcement upon request
for inspection.
f.
All cannabis in whatever form stored at the permitted premises shall
be kept in a secure manner and shall not be visible from outside the
permitted premises, nor shall it be grown, processed, exchanged, displayed
or dispensed outside the permitted premises.
g.
The amount of cannabis on the permitted property and under the control
of the permit holder, owner or operator of the facility shall not
exceed the amount permitted by the State license.
h.
Cannabis offered for sale and distribution must be packaged and labeled
in accordance with State law.
i.
No pictures, photographs, drawings, or other depictions of cannabis
or cannabis paraphernalia shall appear on the outside of any permitted
premises nor be visible outside of the permitted premises on the permitted
property.
j.
The words "marijuana," "cannabis" and any other words used or intended
to convey the presence or availability of marijuana shall not appear
on the outside of the permitted premises nor be visible outside of
the permitted premises on the permitted property.
k.
Sales to the public, public consumption, or use of cannabis, alcohol,
cannabis or other controlled substances on the permitted premises
is prohibited.
l.
The facility's operation and design shall minimize any impact to
adjacent uses, including the control of any odor such that no odor
is detectable beyond the permitted property. No facility shall be
operated in a manner creating noise, dust, vibration, glare, fumes,
or odors beyond the boundaries of the property on which the facility
is operated; or creating any other nuisance that hinders the public
health, safety and welfare of the residents of the Township of Frelinghuysen.
m.
No person operating or employed by a cannabis cultivation or manufacturing
facility shall provide or otherwise make available cannabis to any
person who is not legally authorized to possess same under state law.
n.
All necessary building, electrical, plumbing and mechanical permits
must be obtained for any part of the permitted premises in which electrical,
wiring, lighting or watering devices that support the cultivation,
growing, harvesting or testing of cannabis are located.
o.
The owner and operator of a cannabis cultivation or manufacturing
facility shall use lawful methods in controlling and disposing of
waste or by-products from any activities allowed under the State license
or permit.
p.
Cannabis may be transported within the Township under this ordinance
by a company licensed to do so by the State, and to effectuate its
purpose, only:
1.
In a manner consistent with all applicable State laws and rules,
as amended;
2.
In a secure manner designed to prevent the loss of the cannabis;
3.
Using vehicles that do not have exterior markings including the words
"marijuana," "cannabis," or any similar or slang words; pictures or
other renderings of the cannabis plant; advertisements for cannabis
or for its sale, transfer, cultivation, delivery, transportation or
manufacture; or any other word, phrase or symbol indicating or tending
to indicate that the vehicle is transporting cannabis.
q.
No vehicle may be used for the ongoing or continuous storage of cannabis,
but may only be used incidental to, and in furtherance of, the transportation
of cannabis and cannabis products.
[Added 8-18-2021 by Ord. No. 2021-09]
Any applicant for a cannabis cultivation or cannabis manufacturing
facility shall coordinate with the Township Committee or its designee
regarding the measures to be taken to ensure the security of the facility
and the safety of the public and facility employees. Such measures
may include, but are not limited to, facility access controls, surveillance
systems, and site lighting consistent with the requirements of State
law.
[Added 8-18-2021 by Ord. No. 2021-09]
Subject to the requirements and limitations of state law, the
Township of Frelinghuysen shall have the reasonable right to inspect
the premises of any approved cannabis cultivation or cannabis manufacturing
facility during its regular hours of operation to ensure compliance
with local ordinances and regulations.
[Added 8-18-2021 by Ord. No. 2021-09]
Operation of any prohibited or unpermitted cannabis business
establishment within the municipality in violation of the provisions
of this chapter or the Township Code is hereby declared a public nuisance
and shall be abated pursuant to all available remedies.
[Added 8-18-2021 by Ord. No. 2021-09]
Violations of the provisions and requirements set forth or referenced
herein may be enforced in any manner the Township of Frelinghuysen
deems appropriate, including but not limited to bringing an appropriate
ordinance enforcement action. When an ordinance enforcement action
is brought, the General Penalty provisions of Township Code, as amended
from time to time, shall apply. In addition to any other remedies,
the Township may institute proceedings for injunction, mandamus, abatement
or other appropriate remedies to prevent, enjoin, abate or remove
any violations of this chapter or the Township Code. The rights and
remedies provided herein are civil in nature. The imposition of a
fine shall not exempt the violator from compliance with the provisions
of this chapter.
[Added 8-18-2021 by Ord. No. 2021-09; amended 2-15-2023 by Ord. No. 2023-04]
a.
Transfer Tax.
1.
There shall be a transfer tax imposed on the receipts from the sale
of cannabis and cannabis items from the following licensed persons
or entities in located in this municipality:
2.
The transfer tax rate shall be assessed at 2% of receipts from each
sale by a cannabis cultivator and/or a cannabis manufacturer.
3.
The transfer tax shall be in addition to any other tax or fee imposed
pursuant to statute or local ordinance or resolution by any governmental
entity with regard to cannabis.
4.
The transfer 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.
b.
User Tax.
1.
There shall be a user tax imposed on any concurrent license holder
operating more than one cannabis establishment.
2.
The user tax rate shall be the same rate as the transfer tax above.
3.
The use 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 on the license holder's establishment that is located
in the municipality to any of the other license holder's establishments,
whether located in this municipality or any other municipality.
4.
The user tax shall be in addition to any other tax or fee imposed
pursuant to statute or local ordinance or resolution by any governmental
entity with regard to cannabis.
5.
Any transaction for which the user tax is imposed, is exempt from
the tax imposed under the "Sales and Use Tax Act", except for those
which generate receipts from the retail sales by cannabis retailers.
6.
The transfer 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.
[Added 8-18-2021 by Ord. No. 2021-09; amended 2-15-2023 by Ord. No. 2023-04]
Every cannabis establishment required to collect a transfer
tax or user tax imposed by 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 or the consumer as if the
transfer tax or user tax was a part of the sale and payable at the
same time, or with respect to 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; provided, however,
that the chief fiscal officer of the Township shall be joined as a
party in any action or proceeding brought to collect the transfer
tax or user tax.
[Added 8-18-2021 by Ord.
No. 2021-09; amended 2-15-2023 by Ord. No. 2023-04]
All revenues collected from a transfer tax or user tax imposed
by section pursuant to this section shall be remitted to the Chief
Financial Officer in the manner prescribed herein. The Chief Financial
Officer shall collect and administer any transfer tax or user tax
imposed by ordinance pursuant to this chapter. The Township may enforce
the payment of delinquent taxes or transfer fees imposed by ordinance
pursuant to this section in the same manner as provided for municipal
real property taxes. In the event that the transfer tax or user tax
imposed by ordinance pursuant to 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 property taxes due and owing in the
same year. The Township shall file in the office of its 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 municipal liens are enforced.
[Added 8-18-2021 by Ord.
No. 2021-09; amended 2-15-2023 by Ord. No. 2023-04]
The Township Committee shall have the authority to adopt and
promulgate rules and regulations relating to any matter pertaining
to the administration and enforcement of the transfer tax and user
tax provisions of this section. The Chief Financial Officer is charged
with the administration and enforcement of the provisions of the transfer
tax and user tax provisions of this section, and is empowered to enforce
rules and regulations relating to any matter pertaining to the administration
and enforcement of this section, including provisions for the reexamination
and corrections of declarations and returns, and of payments alleged
or found to be incorrect, or as to which an overpayment is claimed
or found to have occurred, and to prescribe forms necessary for the
administration of this section. Should a cannabis establishment fail
or refuse to provide adequate information to the Chief Financial Officer
to determine the amount of tax due, the Chief Financial Officer may
use information provided to the Chief Financial Officer from other
sources (i.e., the Commission or Department of Treasury) to determine
the amount of tax liability.
a.
It shall be the duty of the Chief Financial Officer to collect and
receive the taxes, fines, and penalties imposed by this section. It
shall also be the duty of the Chief Financial Officer to keep a record
showing the date of such receipt. The Chief Financial Officer is authorized
to enter into agreements with the State of New Jersey to obtain information
to facilitate administration of the tax, subject to the approval of
same by the Township Committee.
b.
The Chief Financial Officer is hereby authorized to examine the books,
papers and records of any taxpayer to verify the accuracy of any declaration
or return, or if no declaration or return was filed, to ascertain
the tax due. Every taxpayer is hereby directed and required to give
to the Chief Financial Officer, or to any agent designated by him/her,
the means, facilities and opportunity for such examinations and investigations,
as are hereby authorized.
[Added 8-18-2021 by Ord.
No. 2021-09; amended 2-15-2023 by Ord. No. 2023-04]
Taxpayers liable for the transfer tax or user tax are required
to keep such records as will enable the filing of true and accurate
returns or the tax and such records shall be preserved for a period
of not less than three years from the filing date or due date, whichever
is later, in order to enable the Chief Financial Officer or any agent
designated by the Chief Financial Officer to verify the correctness
of the declarations or returns filed. If records are not available
in the municipality to support the returns which were filed or which
should have been filed, the taxpayer will be required to make them
available to the Chief Financial Officer either by producing them
at a location in the Township or by paying for the expenses incurred
by the Chief Financial Officer or his agent in traveling to the place
where the records are regularly kept.
[Added 8-18-2021 by Ord.
No. 2021-09; amended 2-15-2023 by Ord. No. 2023-04]
All cannabis establishments operating in the Township are required
to file a transfer tax return and, if applicable, a user tax with
the Chief Financial Officer to report their sales during each calendar
quarter and the amount of tax in accordance with the provisions of
this section. Returns shall be filed and payments of tax imposed for
the preceding calendar quarter shall be made on or before the last
day of April, July, October, and January, respectively. A taxpayer
who has overpaid the transfer tax or user tax, or who believes it
is not liable for the tax, may file a written request on an amended
tax return with the Chief Financial Officer for a refund or a credit
of the tax. For amounts paid as a result of a notice asserting or
informing a taxpayer of an underpayment, a written request for a refund
shall be filed with the Chief Financial Officer within two years of
the date of the payment.
[Added 8-18-2021 by Ord.
No. 2021-09; amended 2-15-2023 by Ord. No. 2023-04]
The returns filed by taxpayers, and the records and files of
the Chief Financial Officer respecting the administration of the transfer
tax and user tax, shall be considered confidential and privileged
and neither the Township nor any employee or agent engaged in the
administration thereof or charged with the custody of any such records
or files, nor any former officer or employee, nor any person who may
have secured information therefrom, shall divulge, disclose, use for
their own personal advantage, or examine for any reason other than
a reason necessitated by the performance of official duties any information
obtained from the said records or files or from any examination or
inspection of the premises or property of any person. Neither the
Chief Financial Officer nor any employee engaged in such administration
or charged with the custody of any such records or files shall be
required to produce any of them for the inspection of any person or
for use in any action or proceeding except when the records or files
or the facts shown thereby are directly involved in an action or proceeding
under the provisions of the State Uniform Tax Procedure Law or of
the tax law affected, or where the determination of the action or
proceeding will affect the validity or amount of the claim of the
Township under the tax provisions of this section.
[Added 8-18-2021 by Ord.
No. 2021-09; amended 2-15-2023 by Ord. No. 2023-04]
The Chief Financial Officer may initiate an audit by means of
an audit notice. If, as a result of an examination conducted by the
Chief Financial Officer, a return has not been filed by an taxpayer
or a return is found to be incorrect and transfer taxes or user taxes
are owed, the Chief Financial Officer is authorized to assess and
collect any tax due. If no return has been filed and tax is found
to be due, the tax actually due may be assessed and collected with
or without the formality of obtaining a return from the taxpayer.
Deficiency assessments (i.e., where a taxpayer has filed a return
but is found to owe additional tax) shall include taxes for up to
three years to the date when the deficiency is assessed. Where no
return was filed, there shall be no limit to the period of assessment.
Upon proposing an assessment, the Chief Financial Officer shall
send the taxpayer an interim notice by certified mail, return receipt
requested, which advises the taxpayer of additional taxes that are
due. Should the taxpayer wish to dispute the assessment administratively
by requesting a hearing with the Chief Financial Officer, it must
do so within 30 days of the date of such interim notice. If, after
the Chief Financial Officer sends an interim notice, a taxpayer fails
to timely request a hearing with the Chief Financial Officer or requests
a hearing and after conducting a hearing, the Chief Financial Officer
determines that the taxes are due, the Chief Financial Officer shall
send the taxpayer by certified mail, return receipt requested, a final
notice. Should the taxpayer wish to dispute the assessment set forth
in the final notice, he or she must initiate an appeal in the New
Jersey Tax Court within 90 days after the mailing of any final notice
regarding a decision, order, finding, assessment, or action hereunder.
[Added 8-18-2021 by Ord.
No. 2021-09]
The following periods of limitations shall apply to suits for
collection of taxes: When a return has been filed but no tax paid,
any suit brought to recover the tax due and unpaid shall be filed
within two years after the return was due or filed, whichever is later.
Where no return was filed or a fraudulent return was filed, there
shall be no limits to file suit for the collection of taxes. Where,
before the expiration of the time prescribed in this section for the
filing a lawsuit against the taxpayer, both the Chief Financial Officer
and the taxpayer have consented in writing to its extension after
such time, the suit may be filed at any time prior to the expiration
of the period agreed upon. The period so agreed upon may be extended
by subsequent agreements in writing made before the expiration of
the period previously agreed upon.
[Added 8-18-2021 by Ord.
No. 2021-09]
Any person who receives an interim notice from the Chief Financial
Officer may within 30 days after the date of an interim notice, request
a hearing with the Chief Financial Officer. Any person who fails to
request a Chief Financial Officer's hearing in a timely manner waives
the right to administratively contest any element of the assessment.
The Chief Financial Officer shall accept payments of disputed tax
amounts under protest pending appeals; however, any request for refund
of such monies must be filed in accordance with this section.
[Added 8-18-2021 by Ord.
No. 2021-09]
Any aggrieved taxpayer may, within 90 days after the mailing
of any final notice regarding a decision, order, finding, assessment,
or action hereunder, or publication of any rule, regulation or policy
of the Chief Financial Officer, appeal to the Tax Court pursuant to
the jurisdiction granted by N.J.S.A. 2B:13-2a(3) to review actions
or regulations of municipal officials by filing a complaint in accordance
with the New Jersey Court Rule 8:3-1. The appeal provided by this
section shall be the exclusive remedy available to any taxpayer for
review of a final decision of the Chief Financial Officer in respect
to a determination of liability for the tax imposed by this chapter.
