The purpose of this article is to impose a tax on the sale of
cannabis or cannabis products by licensed commercial cannabis establishments
operating in the Township of Galloway, pursuant to the CREAMM 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 Township
of Galloway but provides for the taxation of such businesses or activities
as they occur.
A.
The Township of Galloway hereby imposes and shall collect a transfer
tax on the sale of cannabis or cannabis items by a cannabis establishment
that is located within the Township:
B.
A 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 concurrent
license holder's cannabis establishment that is located in the
Township to any of the other concurrent license holder's cannabis
establishments, whether located in the Township or another municipality.
The transfer tax and user tax imposed herein shall be in addition
to any other tax imposed by law.
The transfer tax or user tax shall be collected or paid and
remitted to the Chief Financial Officer of the Township of Galloway
in the manner provided in this article. The cannabis establishment
selling the cannabis or cannabis item shall be required to collect
the transfer tax or user tax from the cannabis establishment purchasing
or receiving the cannabis or cannabis item and to pay or remit the
same to the Chief Financial Officer. 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. The taxes imposed by this article shall be computed
and paid for each calendar month. Said taxes are due and payable to
the Chief Financial Officer on or before the 20th day of the succeeding
month.
Every cannabis establishment required to collect a transfer
tax or user tax imposed by this article 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, 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, 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. The Chief Financial Officer of the Township of Galloway
shall be joined as a party in any action or proceeding brought to
collect the transfer tax or user tax.
No cannabis establishment required to collect a transfer tax
or user tax imposed by this article 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.
Every cannabis establishment that is required to collect the
transfer tax or user tax imposed by this article shall maintain a
copy of all sales slips, invoices, receipts, or other statements or
memorandums of the price paid or payable, or equivalent value of the
transfer, for the cannabis or cannabis item sold, used or transferred
for a period of at least two years and shall make the same available
for inspection and/or audit upon request by the Chief Financial Officer
of the Township of Galloway within five business days of the request.
A.
The Chief Financial Officer is hereby authorized and empowered to
administer, regulate, and collect payment of all taxes imposed by
this article.
B.
The Chief Financial Officer may order an audit of any taxpayer under
this article for the purpose of ascertaining the correctness or completeness
of any return or payment.
A.
The payment of delinquent taxes or transfer fees imposed by this
article shall be enforced in the same manner as provided for delinquent
real property taxes.
B.
In the event that the transfer tax or user tax imposed by this article
is not paid 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,
firm, corporation or other entity, 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.
C.
In the event that a lien is imposed on a delinquent taxpayer pursuant
to this section, the Township shall file in the office of the 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.
