[Adopted 8-5-2021 by Ord. No. 2021:22]
It is the purpose of this article to implement the provisions of N.J.S.A. 24:6I-1 et. seq., N.J.S.A. 24:6I-31, and N.J.S.A. 40:48I-1, which authorize the governing body of a municipality to adopt an ordinance imposing a local cannabis transfer tax and user tax which shall be in addition to any other tax or fee imposed pursuant to statute or local ordinance or resolution by any governmental entity upon the cannabis establishment.
Unless otherwise defined herein, as used herein, the Township adopts by reference the terms and definitions established by Section 40 of Public Law 2021-16 (N.J.S.A. 24:6I-33), including any revised or new terms and definitions that may result from subsequent amendments thereto.
A. 
There is hereby established a local cannabis transfer tax in the Township of Pennsauken which shall be fixed at a uniform percentage rate of 2% of the receipts from each sale by a cannabis manufacturer; 1% of the receipts from each sale by a cannabis wholesaler; 2% of the receipts from each sale by a cannabis retailer; and 2% of the purchase price of medical cannabis dispensed at a medical cannabis dispensary (including medical cannabis that is furnished by the dispensary to a medical cannabis handler for delivery to a registered qualifying patient or the patient's caregiver) for every occupancy of a cannabis establishment in the Township of Pennsauken.
B. 
In addition to the local cannabis transfer tax established for cannabis manufacturers, cannabis wholesalers, cannabis retailers and medical cannabis dispensaries in Subsection A of this section, a user tax, at the equivalent of transfer tax rates, is hereby established on any concurrent license holder, as permitted by Section 33 of P.L. 2021, c. 16 (C. 24:6I-46), 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 Subsection A of this subsection, from the license holder's establishment that is located in Pennsauken to any of the other license holder's establishments, whether located in this Township or another municipality.
The local cannabis transfer tax and user tax shall be in addition to any other tax or fee imposed pursuant to statute or local ordinance or resolution by any governmental entity upon property or cannabis establishment.
A. 
To facilitate the collection of the local cannabis transfer tax and user tax that are established by this article, the entity operating a cannabis establishment shall designate a specific person who shall be responsible for remitting said taxes. This person may be the entity's chief financial officer, president, chairman, manager, employee, owner, or a similar person affiliated with the entity.
(1) 
Notice of designation shall be provided in writing to the Chief Financial Officer of Pennsauken Township and include the signature of the designated person indicating their acceptance of the administrative and financial responsibility for remitting local cannabis transfer taxes and user taxes.
(2) 
Notice of designation shall also be provided in writing sent via certified mail to the designated person with a copy of such notice and proof of the designee's receipt provided to the Chief Financial Officer of Pennsauken Township.
(3) 
The designation of the specific person shall remain valid until a new designation has been made with notifications of same as described above.
B. 
The transfer tax and user tax imposed by this article shall be collected or paid, and remitted to Pennsauken Township, 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 Township by the cannabis retailer selling the cannabis item to that consumer.
C. 
The transfer tax and user tax imposed by this article 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.
D. 
An electronic database record of all transactions subject to transfer tax and user tax shall be maintained for a period covering, at a minimum, the prior six tax years. At a minimum, said record shall include the following information: date of transaction; time of transaction; transaction identification number; total sale amount; total sale amount subject to transfer tax and user tax; total sale amount not subject to transfer tax and user tax; total transfer tax and user tax collected.
(1) 
A copy of this electronic database record shall be provided to the Chief Financial Officer of Pennsauken Township upon request for any reason.
E. 
The operator of every cannabis establishment required to collect a transfer tax or user tax imposed by ordinance pursuant to this section 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 non-payment 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 Pennsauken 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 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. 
Remittance of transfer tax and user tax revenues. Transfer tax and user tax revenues shall be remitted as follows:
(1) 
All revenues collected from a transfer tax or user tax imposed by ordinance pursuant to this section shall be remitted to the Chief Financial Officer of Pennsauken Township on an annual basis and due before close of business on April 21 of the following year. If April 21 falls on a weekend or legal holiday, revenues shall be due on the following business day.
(2) 
All remittances shall be accompanied by a "Local Cannabis Transfer Tax and User Tax Return" on forms to be provided by the Chief Financial Officer of Pennsauken Township.
(a) 
In the event that the remitter subsequently files an amended "Local Cannabis Transfer Tax and User Tax Return" form, with the Chief Financial Officer of Pennsauken Township, the Chief Financial Officer shall assess the deficit or surplus of remittances for the period covered. Deficits shall be payable within 30 days of assessment by the Chief Financial Officer. Surpluses shall be refunded subject to authorization by the Pennsauken Township Committee.
(3) 
The remitter shall be permitted to make optional prepayment of estimated transfer taxes or user taxes at any time.
(a) 
The Chief Financial Officer of Pennsauken Township will record any such prepayment and issue receipt to the remitter.
(b) 
Prepayments will be credited toward the annual tax liability for the year in which they are received.
(c) 
Overpayment of the annual tax liability resulting from prepayment will be refunded subject to authorization by the Pennsauken Township Committee.
H. 
Revenue collection shall be subject to independent audit by a qualified auditor at the sole discretion of the Township of Pennsauken and for any reason.
(1) 
The entity that is the subject of the audit shall be held financially responsible for all fees that result from said audit.
(2) 
To facilitate the conduct of an audit, the licensee shall fully cooperate with any and all requests for information made by the qualified auditor.
A. 
The Chief Financial Officer shall collect and administer any transfer tax or user tax imposed to this section.
B. 
The municipality shall enforce the payment of delinquent taxes or transfer fees imposed pursuant to this section in the same manner as provided for municipal real property taxes.
C. 
In the event that the transfer tax or user tax imposed by 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.
D. 
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.
E. 
In the event that the unpaid balance of the transfer tax or user tax imposed by this section, as well as any interest accruing thereon, is not paid within 90 days, any local cannabis license issued under the terms of Chapter 95 of this code that is associated with the nonpaying cannabis establishment shall be subject to revocation at the discretion of the Township of Pennsauken. Revocation of local cannabis license(s) shall be separate from and in addition to any lien imposed by this section.