[HISTORY: Adopted by the Mayor and Borough Council of the
Borough of Gibbsboro as indicated in article histories. Amendments
noted where applicable.]
[Adopted 8-11-2021 by Ord. No. 2021-09]
As used in this article, the following terms shall have the
meanings indicated:
The same as that term is defined in Section 3 of P.L. 2021,
c. 16 (N.J.S.A. 24:6I-33).
The same as that term is defined in Section 3 of P.L. 2021,
c. 16 (N.J.S.A. 24:6I-33).
The same as that term is defined in Section 3 of P.L. 2021,
c. 16 (N.J.S.A. 24:6I-33).
The same as that term is defined in Section 3 of P.L. 2021,
c. 16 (N.J.S.A. 24:6I-33).
The same as that term is defined in Section 3 of P.L. 2021,
c. 16 (N.J.S.A. 24:6I-33).
The same as that term is defined in Section 3 of P.L. 2021,
c. 16 (N.J.S.A. 24:6I-33).
The same as that term is defined in Section 3 of P.L. 2021,
c. 16 (N.J.S.A. 24:6I-33).
The same as that term is defined in Section 3 of P.L. 2021,
c. 16 (N.J.S.A. 24:6I-33).
The same as that term is defined in Section 3 of P.L. 2021,
c. 16 (N.J.S.A. 24:6I-33).
A.
Transfer tax. There is hereby imposed a transfer tax of 2% on receipts
from the sale of cannabis by a cannabis cultivator to another cannabis
cultivator; receipts from the sale of cannabis items from one cannabis
manufacturer 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; and a tax of 1% of the
receipts from each sale by a cannabis wholesaler. Such tax shall be
collected or paid, and remitted to the municipality 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 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.
No cannabis establishment required to collect a transfer tax imposed
hereunder 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 and stated to another
cannabis establishment or the consumer, or that the transfer tax will
be refunded to the cannabis establishment or the consumer.
B.
User tax. There is also imposed a user tax, at the equivalent transfer tax rates, on any concurrent license holder, as permitted by Section 33 of P.L. 2021, c. 16 (N.J.S.A. 24:6I-46), operating more than one cannabis establishment. The 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 Subsection A of this section, from the license holder's establishment that is located in the municipality to any of the other license holder's establishments, whether located in the municipality or another municipality.
C.
Relationship to other taxes. A transfer tax or user tax imposed pursuant
to 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 Sales and Use Tax Act, P.L.
1966, c. 30 (N.J.S.A. 54:32B-1 et seq.). The transfer tax or user
tax shall be collected or paid, and remitted to the Borough of Gibbsboro
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 Borough of Gibbsboro by the cannabis
retailer selling the cannabis item to that consumer. The 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.
D.
Tax liability. Every cannabis establishment required to collect a
transfer tax or user tax imposed pursuant to this article 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 nonpayment 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 Borough of Gibbsboro which imposes
the transfer tax or user tax shall be joined as a party in any action
or proceeding brought to collect the transfer tax or user tax. No
cannabis establishment required to collect a transfer tax or user
tax imposed by pursuant to this article 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 and stated to another cannabis establishment or the consumer,
or that the transfer tax or user tax will be refunded to the cannabis
establishment or the consumer.
A.
The Chief Financial Officer is charged with the administration and
enforcement of the provisions of this article, and is empowered to
prescribe, adopt, promulgate and enforce rules and regulations relating
to any matter pertaining to the administration and enforcement of
this article, 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 article. 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.
B.
It shall be the duty of the Chief Financial Officer to collect and
receive the taxes, fines, and penalties imposed by this article. 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. The Chief Financial Officer
is authorized to issue a ruling upon written request of a taxpayer
or upon its own volition.
C.
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.
D.
In the event that the transfer tax or user tax imposed pursuant to
this article 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.
E.
The Chief Financial Officer 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.
Taxpayers liable for the transfer and/or user tax are required
to keep such records as will enable the filing of true and accurate
returns of 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 him to verify the correctness of the declarations or
returns filed. If records are not available in the Borough of Gibbsboro
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 municipality 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.
All cannabis establishments operating in the Borough of Gibbsboro
are required to file a transfer and/or user tax return 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 article.
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 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.
