[Added 5-18-2021 by Ord.
No. 2021-9]
a. The cannabis transfer tax in Scotch Plains 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 Township. 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 1% transfer tax shall be collected from receipts from each sale
by a cannabis wholesaler located within the geographical boundaries
of the Township.
c. A user tax is hereby also established at the same rate 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 Township to
any of the other license holder's establishments, whether located
in the Township or another municipality.
d. The transfer tax or user tax imposed by this section 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 regarding same.
[Added 10-18-2022 by Ord.
No. 2022-25]
a. The transfer tax or user tax imposed by this article shall be collected
or paid, and remitted to Scotch Plains 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 municipality by the cannabis retailer selling the cannabis
item to the 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.
b. 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 tax or user tax from
another cannabis establishment or the consumer as if the transfer
tax or user tax was 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 Scotch Plains Township shall be
joined as a party in any action or proceeding brought to collect the
transfer or user tax.
c. 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.
[Added 10-18-2022 by Ord.
No. 2022-25]
a. All revenues collected from the transfer tax or user tax imposed
by this article shall be made payable to the Township of Scotch Plains
and remitted to the Chief Financial Officer on a quarterly basis,
together with a statement on a form prescribed by the Chief Financial
Officer, showing gross receipts and taxes collected. Payments shall
be due no later than April 10, July 10, October 10 and January 10,
or if that date is a Saturday, Sunday or holiday, on the next business
day.
b. A cannabis establishment operating within the Township of Scotch
Plains shall file on an annual basis no later than February 1 of each
year a financial report from an independent accountant certifying
as to the annual revenues for the preceding year.
c. There shall be a ten-day grace period for the payment of said transfer
tax and/or user tax which will be in the same manner as the ten-day
grace period typically permitted for property tax payments. There
shall be no extension of the cannabis transfer tax/user tax grace
period without a resolution of the governing body authorizing a specific
extension.
d. All payments to Scotch Plains Township shall be accompanied by certain
supporting data and made in a manner prescribed by the Chief Financial
Officer.
e. The Chief Financial Officer shall collect and administer the local
cannabis transfer tax and user tax imposed by this article. The Township
shall enforce the payment of delinquent local cannabis transfer tax
and user tax in the same manner and at the same interest rates as
provided for municipal real property taxes.
[Added 10-18-2022 by Ord.
No. 2022-25]
a. If the local cannabis transfer tax and 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. In the event
of a delinquency, the Chief Financial Officer shall file with the
Tax Collector by December 31 of the pretax year a statement showing
the amount of the unpaid balance and identifying the lot and block
number of the parcel of real property that comprises the delinquent
cannabis business. The lien shall be enforced as a municipal lien
in the same manner as all other municipal liens are enforced.