[Adopted 10-13-2020 by Ord. No. 20-058; amended in its entirety 5-12-2022 by Ord. No. 22-042]
All parts of the plant genus cannabis, whether growing or
not; the seeds thereof; and every compound, manufacture, salt, derivative,
mixture, or preparation of the plant or its seeds, except those containing
resin extracted from the plant; but shall not include the mature stalks
of the plant, fiber produced from the stalks, oil or cake made from
the seeds of the plant, any other compound, manufacture, salt, derivative,
mixture, or preparation of such mature stalks, fiber, oil, or cake,
or the sterilized seed of the plant which is incapable of germination.
"cannabis" shall not mean hemp, or a hemp product cultivated, handled,
processed, transported, or sold pursuant to the "New Jersey Hemp Farming
Act," P.L. 2019, c.238 (N.J.S.A. 4:28-6 et al.).
A cannabis cultivator is defined as any licensed person or
entity that grows, cultivates, or produces cannabis in this state,
and sells, and may transport, this cannabis to other cannabis cultivators,
or usable cannabis to cannabis manufacturers, cannabis wholesalers,
or cannabis retailers, but not to consumers.
A cannabis manufacturer is defined as any licensed person
or entity that processes 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 cannabis wholesaler is defined as means any licensed person
or entity that purchases or otherwise obtains, stores, sells or otherwise
transfers, and may transport, cannabis items for the purpose of resale
or other transfer to either to another cannabis wholesaler or to a
cannabis retailer, but not to consumers.
A cannabis distributor is defined as any licensed person
or entity that transports cannabis in bulk intrastate from one licensed
cannabis cultivator to another licensed cannabis cultivator, or transports
cannabis items in bulk intrastate from any one class of licensed cannabis
establishment to another class of licensed cannabis establishment,
and may engage in the temporary storage of cannabis or cannabis items
as necessary to carry out transportation activities.
A cannabis retailer is defined as any licensed person or
entity that purchases or otherwise obtains usable cannabis from cannabis
cultivators and cannabis items from cannabis manufacturers or cannabis
wholesalers, and sells these to consumers from a retail store, and
may use a cannabis delivery service or a certified cannabis handler
for the off-premises delivery of cannabis items and related supplies
to consumers. A cannabis retailer shall also accept consumer purchases
to be fulfilled from its retail store that are presented by a cannabis
delivery service which will be delivered by the cannabis delivery
service to that consumer.
A cannabis delivery service is defined as any licensed person
or entity that provides courier services for consumer purchases of
cannabis items and related supplies fulfilled by a cannabis retailer
in order to make deliveries of the cannabis items and related supplies
to that consumer, and which services include the ability of a consumer
to purchase the cannabis items directly through the cannabis delivery
service, which after presenting the purchase order to the cannabis
retailer for fulfillment, is delivered to that consumer.
An organization issued a permit by the commission that authorizes
the organization to: purchase or obtain medical cannabis and related
supplies from medical cannabis cultivators; purchase or obtain medical
cannabis products and related supplies from medical cannabis manufacturers;
purchase or obtain medical cannabis, medical cannabis products, and
related supplies and paraphernalia from other medical cannabis dispensaries
and from clinical registrants; deliver, transfer, transport, distribute,
supply, and sell medical cannabis and medical cannabis products to
other medical cannabis dispensaries; furnish medical cannabis, including
medical cannabis products, to a medical cannabis handler for delivery
to a registered qualifying patient, designated caregiver, or institutional
caregiver consistent with the requirements of Subsection i. of Section
27 of P.L. 2019, c. 153 (N.J.S.A. 24:61-20); and possess, display,
deliver, transfer, transport, distribute, supply, sell, and dispense
medical cannabis, medical cannabis products, paraphernalia, and related
supplies to qualifying patients, designated caregivers, and institutional
caregivers. A medical cannabis dispensary permit shall not authorize
the permit holder to cultivate medical cannabis, to produce, manufacture,
or otherwise create medical cannabis products.
Any sale or transfer of cannabis.
A.
The medical cannabis transfer tax of the City of Paterson shall be
fixed at a uniform percentage rate of 2% on all sales or transfers
of cannabis products from a medical cannabis dispensary, pursuant
to N.J.S.A. 24:61-10(i) of the CUMCA.
B.
The medical cannabis transfer tax shall be in addition to any other
tax or fee imposed pursuant to statute, state and federal, or local
ordinance or resolution by any government entity upon a Medical cannabis
Dispensary.
C.
The tax imposed by this section shall be paid to the City of Paterson
no later than the beginning of each tax quarter (currently corresponding
to February 1, May 1, August 1, and November 1, prorated where applicable)
with a report certified as true and accurate by the Chief Financial
Officer or other similarly situated person showing the gross revenues
for the medical cannabis dispensary for each month of the preceding
period. The City may require that the medical cannabis dispensary
obtain a financial report from an independent accountant certifying
as to the annual revenues for the preceding period or preceding year
as needed.
D.
A copy of this article shall be transmitted to the State Treasurer
and to every medical cannabis dispensary within the City of Paterson.
A.
There is hereby imposed a transfer tax of the maximum authorized
by N.J.S.A. 40:481-1 and any successor statute, namely:
(1)
Two percent of the receipts from each sale by a cannabis cultivator;
(2)
Two percent of the receipts from each sale by a cannabis manufacturer;
(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
(other than medical, which is addressed by the preceding section);
(5)
Two percent of the receipts on any sale or transfer of nonmedical
cannabis transactions cannabis for any nonlicense holder.
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.
The said tax shall be in addition to any other tax or fee imposed
pursuant to statute, state and federal, or local ordinance or resolution
by any government entity upon such activities, but a sale by any given
cannabis retailer shall not be subject to duplicative taxation, in
that a sale of medical cannabis pursuant to the previous section shall
not also be duplicatively taxed as a general cannabis sale under this
section.
C.
The tax imposed by this section shall be paid to the City of Paterson
no later than the beginning of each tax quarter (currently corresponding
to February 1, May 1, August 1, and November 1, prorated where applicable)
with a report certified as true and accurate by the Chief Financial
Officer or other similarly situated person showing the gross revenues
for the medical cannabis dispensary for each month of the preceding
period. The City may require that the medical cannabis dispensary
obtain a financial report from an independent accountant certifying
as to the annual revenues for the preceding period or preceding year
as needed.
D.
A copy of this article shall be transmitted to the State Treasurer
and to every affected licensee.
A.
Tax liability. Every cannabis establishment required to collect a
transfer tax imposed by ordinance 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 from another cannabis
establishment or the consumer as if the transfer 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 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 municipality shall be joined
as a party in any action or proceeding brought to collect the transfer
tax or user tax.
B.
Collection of taxes and liens. All revenues collected from a transfer
tax imposed by ordinance 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 imposed by ordinance. The municipality 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 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 municipality 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.
This article shall be broadly construed to promote its purpose,
to enable the taxation of all cannabis transactions subject to the
jurisdiction of the municipality.
