[Adopted 7-12-2022 by Ord. No. 06.22]
Whereas, the public has voted to approve an amendment to the
New Jersey Constitution to allow for the legalization of the recreational
use of cannabis for adults at least 21 years of age which has been
signed into law, it is the policy and the intent of the Borough of
Paulsboro to permit and regulate marketplace classes of licensed cannabis
businesses.
Unless specifically defined below or otherwise in N.J.S.A. 24:6I-31
et seq., also known as the "New Jersey Cannabis Regulatory, Enforcement
Assistance, and Marketplace Modernization Act" (the "Act"), and its
applicable regulations, words or phrases used in this article shall
be interpreted so as to give them the meaning they have in common
usage and to give this ordinance its most reasonable application:
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. This person or entity shall hold a Class 1 Cannabis
Cultivator license.
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. This person or entity shall hold a Class 6 Cannabis
Delivery license.
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. This person or entity shall hold a Class 4 Cannabis Distributor
license.
A cannabis cultivator, a cannabis manufacturer, a cannabis
wholesaler, or a cannabis retailer.
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.
This person or entity shall hold a Class 2 Cannabis Manufacturer license.
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. This
person or entity shall hold a Class 5 Cannabis Retailer license.
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
another cannabis wholesaler or to a cannabis retailer, but not to
consumers. This person or entity shall hold a Class 3 Cannabis Wholesaler
license.
A.
In general. Cannabis products shall be subject to the state sales
tax and, as authorized by the Legislature, a local cannabis transfer
tax on the sale of cannabis or cannabis items by a cannabis establishment
that is located in the municipality, and a local cannabis user tax
on any concurrent license holder operating more than one cannabis
establishment.
B.
Local cannabis transfer tax. The local cannabis transfer tax shall
be imposed on: receipts from the sale of cannabis by a cannabis cultivator
to another cannabis cultivator; receipts from the sale of cannabis
items from one cannabis establishment to another establishment; 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. In the Borough of Paulsboro, these rates shall be 2% of the
receipts from each sale by a cannabis cultivator; 2% of the receipts
from each sale by a cannabis manufacturer; 1% of the receipts from
each sale by a cannabis wholesaler; and 2% of the receipts from each
sale by a cannabis retailer. All transfer taxes imposed herein shall
be in addition to any other tax imposed by law.
C.
Local cannabis user tax. The local cannabis user tax shall be imposed on any concurrent license holder operating more than one cannabis establishment and shall be assessed at the equivalent transfer tax rates. 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 by § 72-42B above from the license holder's establishment that is located in the municipality to any of the other license holder's establishments, whether located in this municipality or another municipality. All user taxes imposed herein shall be in addition to any other tax imposed by law.
D.
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 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 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.
E.
Every cannabis establishment required to collect a transfer tax or
user tax imposed by this 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 or user
tax from another cannabis establishment or the 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 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; provided, however,
that the Chief Financial Officer of the Borough of Paulsboro shall
be joined as a party in any action or proceeding brought to collect
the transfer tax or user tax.
F.
No cannabis establishment required to collect a transfer tax or user
tax imposed by ordinance pursuant to this 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 consumer, or that the transfer tax or user tax will be refunded
to the cannabis establishment or the consumer.
G.
All revenues collected from a transfer tax or user tax imposed by
this ordinance shall be remitted to the Chief Financial Officer of
the Borough of Paulsboro in a manner prescribed by the municipality.
The Chief Financial Officer shall collect and administer any transfer
tax or user tax imposed by ordinance pursuant to this section. The
municipality shall enforce the payment of delinquent taxes or transfer
fees imposed by this ordinance in the same manner as provided for
municipal real property taxes.
H.
In the event that the transfer tax or user tax imposed by this ordinance
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.
I.
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.
A.
Civil penalties for violation of an ordinance or regulation governing
the number of cannabis establishments, distributors, or delivery services
that may operate in the Borough of Paulsboro, or their location, manner,
or the times of operations, shall be as follows:
