[8-16-2021 by Ord. No.
MC 2021-25; amended 5-9-2022 by Ord. No. MC 2022-18; 2-12-2024 by Ord. No. MC 2024-06; 4-8-2024 by Ord. No. MC 2024-16]
A. The cannabis
transfer tax in Plainfield 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 City of Plainfield. 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
B. A 1% transfer
tax shall be collected from receipts from each sale by a cannabis
wholesaler located within the geographical boundaries of the City
of Plainfield.
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 City of Plainfield
to any of the other license holder’s establishments, whether
located in the City of Plainfield or another municipality.
D. The transfer
tax or user tax 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 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.
E. Collection of transfer tax and user tax.
1. The transfer tax or user tax shall be collected or paid, and remitted
to the City of Plainfield 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 the City of
Plainfield by the cannabis retailer selling the cannabis item to that
consumer.
2. 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.
3. Every cannabis establishment required to collect a transfer or user
tax imposed by this section shall be personally liable for the transfer
tax or user tax imposed, collected or required to be collected under
this section.
4. 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
nonpayment 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.
5. 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.
F. Remittance of transfer and user tax.
1. Each cannabis establishment collecting transfer and/or user taxes
pursuant to this chapter shall remit the collected taxes to the Chief
Financial Officer of the municipality on a quarterly basis along with
a report certified as true and accurate by the cannabis establishment's
Chief Financial Officer, Comptroller, or other similarly situated
person showing the gross revenues for the cannabis establishment for
each month of the quarter. No tax shall be considered remitted unless
and until said report is supplied. Cannabis retailers shall also file
a copy of their ST-5OC form that they filed with the State. No tax
shall be considered remitted unless and until the cannabis retailers
file a copy of the ST-5OC form.
Remittance shall be payable for the prior three month's
activities and due at the same time as quarterly dates for the collection
of property taxes. The revenues due on February 1 of each year shall
include all transfer taxes or user taxes collected for the prior year
months of October, November and December. The revenues due on May
1 of each year shall include all transfer taxes and user taxes collected
for the immediate prior months of January, February and March. The
revenues due on August 1 of each year shall include all transfer taxes
and user taxes collected for the immediate prior months of April,
May and June. The revenues due on November 1 of each year shall include
all transfer taxes and user taxes collected for the immediate prior
months of July, August and September. There shall be a ten (10) day
grace period for the payment of said transfer tax and/or user tax
which will coincide with the ten (10) day grace period typically permitted
for property tax payments.
2. 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.
3. Each cannabis establishment 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 revenue for the preceding year.
4. Each cannabis establishment shall file with the City on a monthly
basis a copy of its METRC seed to sale inventory management system
report.
5. The Chief Financial Officer of the City may order an audit of any
taxpayer under this chapter for purpose of ascertaining the correctness
or completeness of any return of payment. The Chief Financial Officer
is hereby authorized to examine the books, papers and records of any
taxpayer to verify the accuracy of any declaration or return, or if
no declaration or return was filed, to ascertain the tax due. Every
taxpayer is hereby directed and required to give to the chief financial
officer, or to any agent designated by him/her, the means, facilities
and opportunity for such examinations and investigations, as are hereby
authorized.
G. Penalties for nonpayment.
1. 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.
2. The City 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.
4. In the event that the transfer tax or user tax imposed by this section
is not remitted by the cannabis establishment within 30 days of when
it is due, that cannabis establishment's municipal license to
operate shall be suspended until that tax is remitted. This suspension
shall be in addition to any monetary penalties that are imposed by
this section.
5. In the event that the transfer tax or user tax imposed by this section
is not remitted by the cannabis establishment within 90 days of when
it is due, that cannabis establishment's municipal license to
operate shall be revoked and forfeited. This revocation shall be in
addition to any monetary penalties that are imposed by this section.
H. Violations.
1. For violation of any provision of this section, the penalty upon
conviction shall be the maximum fine permitted under New Jersey State
law for the violation of a municipal ordinance in accordance with
N.J.S.A. 40:49-5, or imprisonment for a period not exceeding the maximum
time permitted under New Jersey State law for the violation of a municipal
ordinance, in accordance with N.J.S.A. 40:49-5, or both.
2. Separate violation for each day. Each day that a violation of this
section is allowed to exist shall constitute a separate violation
or offense and shall be subject to the penalty as prescribed herein.