[Added 4-5-2022 by Ord.
No. 2022-06]
This chapter shall be known and may be cited as the "Recreational
Cannabis Transfer and User Tax."
[Added 4-5-2022 by Ord.
No. 2022-06]
To effectuate the purposes of this chapter, these terms shall
have the following meanings:
Means all parts of the plant Cannabis sativa L., whether
growing or not, the seeds thereof, and every compound, manufacture,
salt, derivative, mixture or preparation of the plant or its seeds,
except those containing resin extracted from the plant, which are
cultivated and, when applicable, manufactured in accordance with the
New Jersey Cannabis Regulatory, Enforcement Assistance, and Marketplace
Modernization Act for use in cannabis products as set forth in the
Act, but shall not include the weight of any other ingredient combined
with cannabis to prepare topical or oral administrations, food, drink
or other product. "Cannabis" does not include: medical cannabis dispensed
to registered qualifying patients pursuant to the "Jake Honig Compassionate
Use Medical Cannabis Act," P.L. 2009, c. 307 (C. 24:6I-1 et al.) and
P.L. 2015, c. 158 (C. 18A:40-12.22 et al.); marijuana as defined in
N.J.S. 2C:35-2 and applied to any offense set forth in chapters 35,
35A, and 36 of Title 2C of the New Jersey Statutes, or P.L. 2001,
c. 114 (C. 2C:35B-1 et seq.), or marijuana as defined in section 2
of P.L. 1970, c. 226 (C. 24:21-2) and applied to any offense set forth
in the "New Jersey Controlled Dangerous Substances Act," P.L. 1970,
c. 226 (C. 24:21-1 et al.); or hemp or a hemp product cultivated,
handled, processed, transported, or sold pursuant to the "New Jersey
Hemp Farming Act," P.L. 2019, c. 238 (C. 4:28-6 et al.).
Means 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.
Means a cannabis cultivator, a cannabis manufacturer, a cannabis
wholesaler, or a cannabis retailer.
Means any usable cannabis, cannabis product, cannabis extract,
and any other cannabis resin. "Cannabis item" does not include: any
form of medical cannabis dispensed to registered qualifying patients
pursuant to the "Jake Honig Compassionate Use Medical Cannabis Act,"
P.L. 2009, c. 307 (C. 24:6I-1 et al.) and P.L. 2015, c. 158 (C. 18A:40-12.22
et al.); or hemp or a hemp product cultivated, handled, processed,
transported, or sold pursuant to the "New Jersey Hemp Farming Act,"
P.L. 2019, c. 238 (C. 4:28-6 et al.).
Means 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.
Means 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.
Means 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.
Means a person 21 years of age or older who purchases, directly
or through a cannabis delivery service, acquires, owns, holds, or
uses cannabis items for personal use by a person 21 years of age or
older, but not for resale to others.
Means the following areas of a location licensed under the
New Jersey Cannabis Regulatory, Enforcement Assistance, and Marketplace
Modernization Act: all public and private enclosed areas at the location
that are used in the business operated at the location, including
offices, kitchens, rest rooms, and storerooms; all areas outside a
building that the Cannabis Regulatory Commission has specifically
licensed for the production, wholesaling, distributing, retail sale,
or delivery of cannabis items; and, for alocation that the commission
has specifically licensed for the production of cannabis outside a
building, the entire lot or parcel that the licensee owns, leases,
or has a right to occupy.
[Added 4-5-2022 by Ord.
No. 2022-06]
There shall also be imposed a user tax, at the equivalent transfer
tax rates, on any concurrent license holder operating more than one
cannabis establishment, as permitted by Section 33 of P.L. 2021, c.
16 (C. 24:6I-46). 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, from the license holder's establishment
that is located in Cliffside Park to any of the other license holder's
establishments, whether or not located in Cliffside Park.
All taxes imposed by this chapter 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 chapter,
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", P.L. 1966, c. 30 (C. 54:32B-1 et seq.).
[Added 4-5-2022 by Ord.
No. 2022-06]
a.
The transfer tax or user tax shall be collected or paid, and remitted
to Cliffside Park by the cannabis establishment from the cannabis
establishment purchasing or receiving the cannabis or cannabis items,
or from the consumer at the point of sale, on behalf of Cliffside
Park by the cannabis retailer selling the cannabis item to that consumer.
b.
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.
c.
Every cannabis establishment required to collect a transfer or user
tax imposed by this chapter shall be personally liable for the transfer
tax or user tax imposed, collected or required to be collected under
this chapter.
d.
Any cannabis establishment shall have the same right with respect
to collecting the transfer tax or user tax from another cannabis establishment
or the cannabis 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 or user tax by the cannabis establishment
or 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 Borough CFO shall be joined as a
party in any action or proceeding brought to collect the transfer
tax or user tax.
e.
No cannabis establishment required to collect a transfer tax or user
tax 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.
f.
All revenues collected from a transfer tax or user tax imposed by
this section shall be remitted to the Cliffside Park CFO and deposited
into the general treasury for use pursuant to Statute.
g.
The Borough shall enforce the payment of delinquent taxes or transfer
fees imposed by this chapter in the same manner as provided for municipal
real property taxes.
h.
Failure to remit the tax to the Municipality for a period in excess
of 90 days shall result in the revocation of the Cannabis Retail Sales
License.
i.
The retailer shall quarterly submit its sales tax declaration jointly
with the Cannabis Tax for proof purposes.
[Added 4-5-2022 by Ord.
No. 2022-06]
a.
In the event that the transfer tax or user tax imposed by this chapter
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.
b.
In the event of a failure to remit taxes, the Borough 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.
c.
The lien shall be enforced as a municipal lien in the same manner
as all other municipal liens are enforced.
d.
Failure to pay transfer or use tax when due shall be grounds for
immediate revocation of the Municipal Cannabis Retail Sales Permit.
[Added 4-5-2022 by Ord.
No. 2022-06]
The revenues collected from the tax imposed under this chapter
shall be dedicated to the Cliffside Park general treasury for use,
pursuant to Statute.
