Borough of Woodbury Heights, NJ Cannabis

Pursuant to Section 31b of the New Jersey Cannabis Regulatory, Enforcement Assistance, and Marketplace Modernization Act (P.L.2021, c.16), all cannabis establishments, cannabis distributors or cannabis delivery services are hereby prohibited from operating anywhere in the Borough of Woodbury Heights, except for the delivery to consumers of cannabis items and related supplies by a delivery service. This prohibition shall also apply in those parts of the Borough of Woodbury Heights under the jurisdiction and authority of any state agency, commission, or authority.

See § 66-3 and § 66-4 for districts where cannabis is permitted as a conditional use.

§ 66-2 Cannabis distributors and delivery.

[Amended 10-19-2022 by Ord. No. 20-2022]

All classes of cannabis establishments or cannabis distributors or cannabis delivery services as said terms are defined in Section 3 of P.L.2021, c.16, but not the delivery of cannabis items and related supplies by a delivery service, are prohibited within the entirety of the Borough of Woodbury Heights.

§ 66-3 Cannabis Manufacturing.

[Added 10-19-2022 by Ord. No. 20-2022]

State licensed Cannabis Manufacturing (Class 2) facilities are permitted as a conditional use in the LI -Light Industrial Zoning District.

(1)

Any business duly licensed by the State of New Jersey to conduct legal adult use cannabis operations, as defined by State law, may operate within the noted zones so long as: (i) the entity maintains its State license in good standing; and (ii) the entity otherwise remains in full compliance with the laws and regulations established by the State of New Jersey and the Cannabis Regulatory Commission, as may be amended.

(2)

Any licensed Cannabis facility shall provide a copy of its license issued by the Commission to the Police Department no later than 30 days prior to the commencement of any operations. A licensed Cannabis facility shall insure that a current license is on file with the Police Department at all times. A copy of the current license issued by the Commission shall be posted within the licensed Cannabis facility at all times at a location readily visible by any and all patrons of the facility.

(3)

No license to operate within the Borough shall be granted or renewed without such evidence as may be required by the Borough Clerk's Office to determine that the entity maintains all valid State and/or departmental licenses and approvals, and that all such licenses and/ or approvals remain in good standing at the time of registration.

(4)

Any Cannabis facility must receive conditional use and site plan approval from the Planning Board.

§ 66-4 Cannabis Retail.

[Added 10-19-2022 by Ord. No. 20-2022]

State licensed Retail (Class 5) Facilities are permitted as a conditional use in the HC-Highway Commercial Zoning District.

(1)

(2)

(3)

No License to operate within the Borough shall be granted or renewed without such evidence as may be required by the Borough Clerk's Office to determine that the entity maintains all valid State and/or departmental licenses and approvals, and that all such licenses and/or approvals remain in good standing at the time of registration.

(4)

Any Cannabis facility must receive conditional use and site plan approval from the Planning Board.

Article II Cannabis Transfer Tax and User Tax

[Adopted 5-18-2022 by Ord. No. 11-2022; amended in its entirety 10-18-2023 by Ord. No. 13-2023]

§ 66-5 Cannabis tax established.

[Amended 10-18-2023 by Ord. No. 13-2023]

The Borough of Woodbury Heights hereby imposes and shall collect certain local option taxes on cannabis business activity as follows:

A municipal transfer tax is hereby imposed on the transfer or sale from the receipts of each lawful sale by a licensed cannabis business operating in the Borough of Woodbury Heights at a rate of 2% of the receipts from the sale or transfer of cannabis products by any Class I to VI license holder, which shall include a 2% tax on receipts by a cannabis cultivator to another cannabis cultivator; 2 % tax on receipts on the sale of cannabis items from one cannabis establishment to another cannabis establishment; 2% tax on receipts from the retail sales of cannabis items by a cannabis retailer to retail customers who are 21 years of age or older; or any combination of the above. A 1% percent municipal transfer tax shall be imposed on the lawful sale of cannabis products produced by any Class III license holder, if permitted by the Borough Code.

The cannabis transfer tax shall be in addition to any other tax or fee imposed pursuant to state statute, state or federal law, or local ordinance or resolution by any government entity upon a cannabis establishment.

A user tax is hereby also established at the same rate of 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 of the other license holder's establishments, whether located in the Borough or another municipality.

Any transaction for which the transfer tax or user tax is imposed, or could be imposed, under this article, other than those which generate receipts from the retail sales by cannabis retailers, shall be exempt from the tax imposed under N.J.S.A. 54:32b-1 et seq., "Sales and Use Tax Act."

§ 66-6 Payment of taxes.

[Amended 10-18-2023 by Ord. No. 13-2023; 4-17-2024 by Ord. No. 9-2024]

All tax revenue collected pursuant to this article shall be remitted to the Borough's Chief Financial Officer, on a quarterly basis no later than the 15th day of the month following the last month of the quarter, along with an estimated tax revenue report certified as true and accurate by the cannabis establishment's Chief Financial Officer, Controller or other similarly situated person showing the gross revenues for the cannabis establishment for each month of the quarter, along with a preliminary report produced by the cannabis establishment showing the gross revenues for the cannabis establishment for each month of the quarter.

Each cannabis establishment operating within the Borough of Woodbury Heights shall file on an annual basis, no later than April 15 of each year, a financial report certifying the annual revenue of the licensed cannabis establishment for the preceding year. The Borough reserves the right, in its discretion, to request and seek the annual report from an independent accountant paid for by the cannabis establishment.

§ 66-7 Violations and penalties.

[Amended 10-18-2023 by Ord. No. 13-2023]

The payment of delinquent taxes or transfer fees imposed by this article, if not paid when due, shall be subject to an interest rate of 12% per annum on the amount of tax due.

In the event that the transfer tax or user tax imposed by this article remains unpaid, the unpaid balance, and any interest accruing, 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 and 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 of the parcel for unpaid property taxes due and owing in the same year.

In the event that a lien is imposed on a delinquent taxpayer pursuant to this section, the Borough shall file in the office of the Tax Collector, a statement showing the amount and due date of the unpaid balance and identifying the block and lot 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.