A new article of the City Code captioned "Transfer and User
Tax" is hereby created to establish transfer and user taxes on cannabis
transactions by licensed cannabis businesses within the City pursuant
to N.J.S.A. 40:48I-1.
The purpose of this article is to impose a tax on the sale of
cannabis or cannabis products by licensed commercial cannabis businesses
operating in the City of Millville pursuant to the New Jersey Cannabis
Regulatory Enforcement Assistance and Marketplace Modernization Act, to specify the type of tax and rate of tax to be levied
and the method of collection, and to comply with all requirements
for the imposition of a transfer or user tax pursuant to state law.
This article is enacted solely to raise revenue and not for regulation.
This article does not authorize the conduct of any business or activity
in the City of Millville, but provides for the taxation of such businesses
or activities as they occur.
For the purpose of this article, words and phrases herein shall
have the same meanings as codified under state law, N.J.S.A. 40:481-1(d),
and any amendments or supplements thereto, and the rules and regulations
of the Cannabis Regulatory Commission. In the event of a conflict
in the meaning of words or phrases as between the City Code and the
foregoing laws or regulations of the state concerning legal cannabis,
state law or regulations shall govern.
The City of Millville hereby imposes and shall collect certain
local option taxes on cannabis business activity as follows:
A. A municipal
transfer tax is hereby imposed on the receipts of each sale by a licensed
cannabis business operating in the City of Millville at the rate of
2% of the receipts from each sale by a cannabis cultivator, and a
cannabis manufacturer, and 1% of the receipts from each sale by a
cannabis wholesaler.
B. A municipal
user tax is hereby imposed, 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 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.