As authorized by N.J.S.A. 40:48I-1, the City shall impose a transfer
tax not to exceed 2% on a cannabis establishment that is located in
the municipality. The tax shall be imposed on receipts from the sale
of cannabis items from one cannabis establishment to another cannabis
establishment and 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. The rate of transfer tax to
be established by the City of Salem is 2% of the receipts from each
sale by a cannabis retailer.
A local tax ordinance adopted pursuant to Paragraph (1) of N.J.S.A. 40:48I-1a shall also include provisions for imposing a user tax, at the equivalent transfer tax rates, 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 imposed by the City 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 the municipality to any of the other license holder's establishments, whether located in the municipality or another municipality.
A transfer tax or user tax imposed herein 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
article, 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.).
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.
Every cannabis establishment required to collect a transfer tax or
user tax imposed by ordinance pursuant to this article shall be personally
liable for the transfer tax or user tax imposed, collected, or required
to be collected under this article. 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 fiscal officer of the municipality which imposes the
transfer tax or user tax 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 ordinance pursuant to 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.
No cannabis establishment required to collect a transfer tax or user
tax imposed by ordinance pursuant to 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.
All amounts due to the City shall be remitted to the Chief Financial
Officer of the municipality on a quarterly basis every February 1,
May 1, August 1 and October 1. The cannabis retailer shall include
with its payment certified sales records from its business to the
City Administrator. The dispensary shall provide any other documentation
as may be required by the City to verify the accuracy of the transfer
tax submitted. The Chief Financial Officer shall collect and administer
any transfer tax or user tax imposed by ordinance pursuant to this
article. The municipality shall enforce the payment of delinquent
taxes or transfer fees imposed by this article in the same manner
as provided for municipal real property taxes.
In the event that the transfer tax or user tax imposed by ordinance
pursuant to this article 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.
A 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.