[Adopted by the Mayor and Council of the Borough of Neptune
City 5-10-2021 by Ord. No. 2021-04. Amendments noted where applicable.]
[Amended 7-25-2022 by Ord. No. 2022-10]
A. The cannabis transfer tax in Borough of Neptune City shall be fixed
at a uniform percentage rate of 2% on all sales or transfers of cannabis
products from any of the cannabis establishments that are located
within the geographical boundaries of the Borough. This tax shall
be imposed on:
(1) Receipts from the sale of cannabis by a cannabis cultivator to another
cannabis cultivator;
(2) Receipts from the sale of cannabis items from one cannabis establishment
to another cannabis establishment;
(3) Receipts from the retail sales of cannabis items by a cannabis retailer
to retail consumers who are 21 years of age or older; or any combination
thereof.
B. A 2% transfer tax shall be collected from receipts from each sale
by a cannabis wholesaler located within the geographical boundaries
of the Borough.
C. A user tax is hereby also established at the same rate of the transfer tax as 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 Subsection
A, 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.
D. The transfer tax or user tax imposed by this ordinance 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” (N.J.S.A. 54:32B-1 et
seq). The transfer tax or user tax will be assessed and collected
pursuant to established state law and administrative rules and regulations
adopted regarding same.
E. In accordance
with the provisions of N.J.S.A. 40:48I-1, section 40, every cannabis
establishment required to collect the transfer and user taxes imposed
by this chapter shall be personally liable for the transfer and user
tax imposed, collected, or required by this chapter and under N.J.S.A.
40:48I-1, section 40.
F. Any cannabis
establishment collecting a transfer tax or user tax shall have the
same right with respect to collecting the tax from another cannabis
establishment or the consumer as if the 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 tax was part of the purchase price of the cannabis or cannabis
item and payable at the same time, provided that the Chief Financial
Officer of the Borough of Neptune City which imposes the transfer
tax and user tax is joined as a party in any action or proceeding
brought to collect the transfer tax or user tax.
G. No cannabis
establishment required to collect the transfer and user taxes imposed
by this chapter 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.
H. Each cannabis
establishment collecting transfer and user taxes pursuant to this
chapter shall be remitted to the Tax Collector of the Borough of Neptune
City, on a basis to be determined by the Chief Financial Officer.
I. Delinquent
taxes. If a licensee is a lessee of the parcel of the real property
comprising the cannabis establishment premises, and the licensee/lessee
becomes delinquent in submitting either the transfer or user taxes
for more than 30 days, the Borough may refer the licensee/lessee to
the Borough Administrator to consider any actions to be taken, including
but not limited to, penalties to be imposed, suspension of the license,
disallowance of a license renewal or any other remedies allowed by
law.
J. If the
licensee is the owner of the parcel of real property comprising the
cannabis establishment premises, and if the transfer tax or user tax
is not paid when due, the unpaid balance, and any interest accruing
thereon, shall be a lien on the parcel of real property comprising
the cannabis establishment's premises. The annual Borough license
issued pursuant to this chapter shall not be renewed for the cannabis
establishment should any transfer or user tax pursuant to this chapter
be delinquent.
K. 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.
L. The Borough
shall file with the Tax Collector, a statement showing the amount
and due date of the unpaid balance of cannabis taxes 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.