[Adopted 7-13-2021 by Ord. No. 20-2021]
A.
Consistent with state law, this article of the City Code provides
the tax rate imposed on receipts from the sale of cannabis by:
(1)
A cannabis cultivator to another cannabis cultivator;
(2)
Of cannabis or cannabis items from one cannabis establishment to
another cannabis establishment;
(3)
From the retail sales of cannabis items by a cannabis retailer to
retail customers consumers who are 21 years of age or older; or
(4)
Any combination thereof.
Specific definitions. As used in this chapter, the following
terms shall have the meanings indicated:
A person or entity holding a Class 1 Cannabis Cultivator
license pursuant to N.J.S.A. 24:6I-31 et seq., and any regulations
duly adopted by the Cannabis Regulatory Commission. Class 1 licensees'
primary business is the growth, cultivation, or production of cannabis
to sell cannabis to cannabis products to manufacturing and to other
cannabis cultivation facilities, but not to individual customers and/or
retail consumers.
A person or entity holding a Class 6 Cannabis Delivery license
pursuant to N.J.S.A. 24:6I-31 et seq., and any regulations duly adopted
by the Cannabis Regulatory Commission. Class 6 licensees' primary
business is the provision of courier services for consumer purchases
of cannabis items and related supplies fulfilled by a cannabis retailer.
A facility or other place of business operated by a cannabis
distributor or cannabis delivery service in providing services as
a Class 4 or Class 6 licensee pursuant to license under N.J.S.A. 24:6I-31
et seq. and any regulations adopted by the Cannabis Regulatory Commission,
where such person or entity lawfully engages in the bulk distribution
or consumer delivery of cannabis, usable cannabis or cannabis products.
A person or entity holding a Class 4 Cannabis Distributor
license pursuant to N.J.S.A. 24:6I-31 et seq., and any regulations
duly adopted by the Cannabis Regulatory Commission. Class 4 licensees'
primary business is the transportation of cannabis in bulk intrastate
from one licensed cannabis cultivator to another licensed cannabis
cultivator or transporting cannabis items in bulk intrastate from
any one class of licensed cannabis establishment to another class
of licensed cannabis establishment. Class 4 Cannabis Distributors
may also engage in the temporary storage of cannabis or cannabis items
as necessary to carry out transportation activities.
Shall be collectively defined as cannabis cultivation facilities,
cannabis product manufacturing facilities, cannabis retailer establishments
and cannabis testing facilities and refers to a person or entity operating
a business pursuant to N.J.S.A. 24:6I-31 et seq., and any regulations
duly adopted by the Cannabis Regulatory Commission.
Any person licensed or registered pursuant to the Act.
A person or entity holding a Class 2 Cannabis Manufacturer
license pursuant to N.J.S.A. 24:6I-31 et seq., and any regulations
duly adopted by the Cannabis Regulatory Commission. Class 2 licensees'
primary business is processing cannabis items in this state by purchasing
or otherwise obtaining usable cannabis, manufacturing, preparing,
and packaging cannabis items, and selling, and optionally transporting,
these items to other cannabis manufacturers, cannabis wholesalers,
or cannabis retailers, but not to consumers.
A person or entity holding a Class 5 Cannabis Retailer license
pursuant to N.J.S.A. 24:6I-31 et seq., and any regulations duly adopted
by the Cannabis Regulatory Commission. Class 5 licensees' primary
business is purchasing or otherwise obtaining usable cannabis from
cannabis cultivators and cannabis items from cannabis manufacturers
or cannabis wholesalers, and reselling these to consumers either through
a retail store or use of a cannabis delivery service or a certified
cannabis handler for the off-premises delivery of cannabis items and
related supplies to consumers.
An independent, third-party entity meeting accreditation
requirements established by the State of New Jersey that is licensed
to analyze and certify the safety and potency of cannabis items.
A person or entity holding a Class 3 Cannabis Wholesaler
license pursuant to N.J.S.A. 24:6I-31 et seq., and any regulations
duly adopted by the Cannabis Regulatory Commission. Class 3 licensees'
primary business entails the purchase or otherwise obtaining, storing,
selling and otherwise transferring, and may transport, cannabis items
for the purpose of resale or other transfer to either another cannabis
wholesaler or to a cannabis retailer, but not to consumers.
A.
The following rates of taxation shall apply:
(1)
Two percent of the receipts from each sale by a cannabis cultivator
and/or grower;
(2)
Two percent of the receipts from each sale by a cannabis manufacturer
and/or processor;
(3)
One percent of the receipts from each sale by a cannabis wholesaler;
and
(4)
Two percent of the receipts from each sale by a cannabis retailer.
A.
A user tax, at the equivalent transfer tax rates, on any concurrent license holder 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, 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.
B.
A transfer tax or user tax imposed pursuant 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 municipality by the cannabis establishment from
the cannabis establishment purchasing or receiving the cannabis or
cannabis item, or from the customer or consumer at the point of sale,
on behalf of the municipality by the cannabis establishment retailer
selling or transferring 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.
C.
Every cannabis establishment required to collect a transfer tax or
user tax imposed by ordinance pursuant to this 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 customer 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 customer/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.
D.
No cannabis establishment required to collect a transfer tax or user
tax imposed by this Code section 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 customer or consumer,
or that the transfer tax or user tax will be refunded to the cannabis
establishment or the customer or consumer.
E.
Remittance; collection; delinquency.
(1)
All revenues collected from a transfer tax or user tax imposed by
ordinance pursuant to this section shall be remitted to the chief
financial officer of the City in a manner prescribed by the City.
The chief financial officer shall collect and administer any transfer
tax or user tax imposed by ordinance pursuant to this section. The
City shall be authorized to enforce the payment of delinquent taxes
or transfer fees imposed by this section of the Code in the same manner
as provided for municipal real property taxes.
(2)
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 or the 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.
F.
In order to confirm that the sales recorded and taxes paid to the
City are in conformance with City Code, the City is authorized to
audit the sales receipts of any licensed business by issuing a written
request for documentation of the sales by the business within the
time period designated by the City's audit request. The business
is required to comply with this request promptly, but no later than
30 days after receiving the request for its documentation of the sales
made and taxes collected.
G.
The City is authorized to 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 and/or the establishment's
premises. The lien shall be enforced as a municipal lien in the same
manner as all other municipal liens are enforced.
