[HISTORY: Adopted by the Township Council of the Township
of Logan as indicated in article histories. Amendments noted where
applicable.]
[Adopted 12-19-2023 by Ord. No. 24-2023[1]]
[1]
Editor’s Note: This ordinance also superseded former
Art. I, Permitting, Licensing and Transfer Tax Requirements for Regulated
Cannabis Businesses, adopted 9-6-2022 by Ord. No. 15-2022.
The aforementioned recitals are incorporated herein as though
fully set forth at length.[1]
[1]
Editor's Note: The recitals contained in Ord. No. 24-2023
are on file in the office of the Township Clerk.
As used in this article, the following terms shall have the
meanings indicated:
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. A cannabis cultivator that is also licensed to sell
cannabis and cannabis products to the public outside the Township
shall nevertheless be permitted to engage in cannabis cultivation
by the Township.
Any usable cannabis, cannabis, product, cannabis extract,
and any other cannabis resin including any form of medical cannabis
intended for consumption by registered qualifying patients pursuant
to the "Jake Honig Compassionate Use Medical Cannabis 5 Act," P.L.
2009, c.307 (N.J.S.A. 24:6I-1 et al.) and P.L. 2015, c. 158(N.J.S.A.
18A:40-12.22 et al.).
Any licensed person or entity that processes cannabis items
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. A cannabis
manufacturer who is also licensed to sell cannabis and cannabis products
to the public in locations outside the Township shall nevertheless
be permitted to engage in cannabis manufacturing in the Township.
A product containing usable cannabis, cannabis extract, or
any other cannabis resin, and other ingredients intended for human
consumption or use, including a product intended to be applied to
the skin or hair, edible cannabis products, ointments and tinctures.
The drying, processing, compounding, or conversion of usable
cannabis into cannabis products or cannabis resins.
A cannabis cultivation or manufacturing facility issued a permit
or license by the State of New Jersey and operating in the Township
under this chapter shall at all times comply with the following operational
requirements:
A.
A cannabis facility shall comply with the Township zoning code, the
building code and all subcodes, and the property maintenance code
at all times.
B.
The facility must hold at all times a valid license or permit issued
by the State of New Jersey to undertake cannabis Class II licensed
business at the permitted property. A state-issued license is valid
only for the location identified on the license and until the expiration
date printed on the license and cannot be transferred to another location
in the Township without a new application. The state-issued license
shall be prominently displayed inside the permitted premises in a
location where it can be easily viewed by law enforcement and administrative
authorities.
C.
Class II licensed business shall be conducted solely within the permitted
premises on the permitted property. No Class II facility shall be
permitted to operate from a movable, mobile or transitory location,
except for the permitted and transportation of cannabis and cannabis
products to and from the facility pursuant to the terms of the state
license or permit.
D.
No person under the age of 18 shall be permitted to enter into the
permitted premises.
E.
A cannabis Class II licensed business shall at all times maintain
a security system that meets state law requirements, and shall also
include:
(1)
Security surveillance cameras installed to monitor all entrances
along with the interior and exterior of the permitted premises;
(2)
Burglary alarm systems which are professional monitored and operated
24 hours a day, seven days a week;
(3)
All security recordings and documentation shall be preserved for
at least 30 days and made available to law enforcement upon request
for inspection.
F.
All cannabis in whatever form stored at the permitted premises shall
be kept in a secure manner and shall not be visible from outside the
permitted premises, nor shall it be grown, processed, exchanged, displayed
or dispensed outside the permitted premises.
G.
The amount of cannabis on the permitted property and under the control
of the permit holder, owner or operator of the facility shall not
exceed the amount permitted by the state license.
H.
No pictures, photographs, drawings or other depictions of cannabis
or cannabis paraphernalia shall appear on the outside of any permitted
premises nor be visible outside of the permitted premises on the permitted
property.
I.
The words "marijuana," "cannabis" and any other words used or intended
to convey the presence or availability of marijuana shall not appear
on the outside of the permitted premises nor be visible outside of
the permitted premises on the permitted property.
J.
Sales to the public, public consumption or use of cannabis, alcohol,
cannabis or other controlled substances on the permitted premises
is strictly prohibited.
K.
No facility shall be operated in a manner creating noise, dust, vibration,
glare, fumes, or odors beyond the boundaries of the property on which
the facility is operated; or creating any other nuisance that hinders
the public health, safety and welfare of the residents of the Township.
L.
Odor control devices and techniques shall be incorporated in all
cannabis businesses to ensure that odors from cannabis are not detectable
off-site. Cannabis businesses shall provide a sufficient odor-absorbing
ventilation and exhaust system so that odor generated inside the cannabis
business that is distinctive to its operation is not detected outside
of the facility or on adjacent property or public rights-of-way. If
and where applicable, cannabis businesses shall install measures such
as an exhaust air filtration system with odor control that prevents
internal odors from being emitted externally, or an air system that
creates negative air pressure between the cannabis business's
interior and exterior, so that the odors generated inside the cannabis
business are not detectable on the outside of the cannabis business,
or such other technology or systems to prevent external emissions
of odor.
M.
No person operating or employed by a cannabis Class II licensed business
shall provide or otherwise make available cannabis to any person who
is not legally authorized to possess same under state law.
N.
The owner and operator of a cannabis Class II licensed business facility
shall use lawful methods in controlling and disposing of waste or
by-products from any activities allowed under the state license or
permit.
O.
Cannabis may be transported within the Township under this article
by a company licensed to do so by the state, and to effectuate its
purpose, only:
(1)
In a manner consistent with all applicable state laws and rules,
as amended;
(2)
In a secure manner designed to prevent the loss of the cannabis;
(3)
Using vehicles that do not have exterior markings including the words
"marijuana," "cannabis" or any similar or slang words; pictures or
other renderings of the cannabis plant; advertisements for cannabis
or for its transfer, cultivation, delivery, transportation or manufacture;
or any other word, phrase or symbol indicating or tending to indicate
that the vehicle is transporting cannabis.
P.
No vehicle, trailer or portable storage unit may be used for the
storage of cannabis, but may only be used incidental to, and in furtherance
of, the transportation of cannabis and cannabis products on and off
the premises.
Q.
Coordination of safety and security measures. Any application for
a cannabis Class II licensed business facility shall coordinate with
the Chief of Police, or his or her designee, regarding the measures
to be taken to ensure the security of the facility and the safety
of the public and facility employees. Such measures may include, but
are not limited to, facility access controls, surveillance systems
and site lighting consistent with the requirements of state law.
R.
Inspection. Subject to the requirements and limitations of state
law, the municipality shall have the reasonable right to inspect the
premises of any approved dispensary, cannabis cultivation or cannabis
manufacturing facility during its regular hours of operation to ensure
compliance with local ordinances and regulations.
A.
Cannabis establishments. The regulations of this article are subject
to the enabling authority of the State of New Jersey and are subject
to compliance with all statutes and/or regulations adopted by the
State of New Jersey or its instrumentalities, including the Cannabis
Regulatory Commission. If any provision of this article is inconsistent
with the state statutes and/or regulations, the state statutes and/or
regulations shall prevail.
B.
Licensing.
(1)
Local licensing authority.
(a)
The Township Council is hereby designed to act as the local
licensing authority for the Township for all cannabis establishments.
Under all circumstances in which state law requires communication
to the Township by the Cannabis Regulatory Commission or any other
state agency with regard to the licensing of cannabis establishments
by the state, or in which state law requires any review or approval
by the Township of any action taken by the state licensing authority,
the exclusive authority for receiving such communications and granting
such approvals shall be exercised by the Council.
(b)
Under no circumstances shall a local license for a cannabis
establishment issued by the Township be effective until or unless
the state has issued the requisite permits or licenses to operate
such a facility. It is the intent of this chapter that no cannabis
establishment may lawfully operate in the Township without the issuance
of a state permit or license and fully regulatory oversight of the
cannabis establishment by the Cannabis Regulator Commission or other
state licensing authority as well as well as oversight and issuance
of a license by the Township.
(2)
Classification of licenses. The Township, subject to Township and/or
county land use approval and state licensure, may issue the following
municipal licenses to operate a cannabis establishment:
(a)
Class II: Cannabis manufacturer license.
(3)
Maximum number of licenses. The Township may issue a maximum of three
Class II licenses. Any license conditionally issued by the Township
is contingent upon the locally licensed entity's or individual's
subsequent recipient of a state permit or license of the same class
or type of regulated cannabis activity.
(4)
Application. Persons wishing to obtain any classification of cannabis
license shall file a license application with the Township Clerk,
on a standardized form established by the Township Council and available
at the Clerk's Office. The Township Council shall establish a
reasonable application period and deadline for all applications. An
application shall be deemed incomplete, and shall not be processed
by the Township Council, until all documents and application fees
are submitted. To be deemed complete, all applications shall be accompanied
by the following:
(a)
A photocopy of a valid, unexpired driver's license or state
issued identification card for all owners, directors, and officers
of the proposed cannabis establishment.
(b)
A signed application, which must include all of the following
information and documents:
[1]
If the applicant is an individual, the applicant's name;
date of birth; Social Security number; physical address, including
resident and any business address or addresses; copy of government
issued photo identification; email address; one or more valid phone
numbers, including emergency contact information; or
[2]
If the applicant is not an individual, the names; dates of birth;
physical addresses, including residential and any business address;
copy of government-issued photo identifications; email address; and
one or more phone numbers of each stakeholder of the applicant entity,
including designation of the highest ranking officer or representative
as an emergency contact person; contact information for the emergency
contact person; copy of articles of incorporation or organization;
assumed name registration; copy of Internal Revenue Service EIN confirmation
letter; copy of the operating agreement of the applicant, if a limited
liability company; copy of the partnership agreement, if a partnership;
names and addresses of the beneficiaries, if a trust, or a copy of
the bylaws or shareholder agreement, if a corporation; and New Jersey
Business Registration Certification.
(c)
Consent to perform a background check/investigation by the Township.
(d)
The applicant shall submit proof that the applicant has or will
have lawful possession of the premises proposed for the cannabis establishment,
which proof may consist of: a deed, a lease, a real estate contract
contingent upon successful licensing, or a binding letter of intent
by the owner of the premises indicating an intent to lease the premises
to the applicant contingent upon successful licensing.
(e)
The applicant shall submit an affidavit and documentary proof
of compliance with all state and local laws regarding affirmative
action, antidiscrimination and fair employment practices. The applicant
shall also certify under oath that they will not and shall not discriminate
based on race, color, religion (creed), gender, gender expression,
age, national origin (ancestry), disability, marital status, sexual
orientation, or military status, in any of its activities or operations.
(f)
The location proposed for licensing by the applicant shall comply
with all applicable municipal zoning laws.
(g)
The applicant shall submit, to the satisfaction of the Township
Council, proof of financial capability to open and operate the cannabis
establishment for which the applicant is seeking a license. Standards
for proof of financial capability shall be determined by the Township
CFO and/or Administrator.
(h)
The applicant shall submit all required nonrefundable fees for
the application and conditional license in accordance with the following
fee schedule:
[1]
Class II: $10,000 cannabis manufacturer license (processor)
per location.
(i)
The applicant shall submit all annual license fees (including
renewal) required in accordance with the following fee schedule, which
shall be refunded in the event the applicant does not receive a renewal
license:
[1]
Class II: $10,000 cannabis manufacturer license (processor).
(j)
In addition to complying with the state requirement related
to good character and criminal background, any person proposed to
have an ownership interest in the license shall not have had any cannabis
license or permit revoked for a violation affecting public safety
in the state of New Jersey or a subdivision thereof within the preceding
five years.
(k)
The applicant and the application shall otherwise comply with
any, and all qualifications standards set forth in the state and Township
laws or regulations.
(l)
In the event there are multiple applicants for a license, the
Township Council shall evaluate all applicants and issue a notification
of award after consideration and evaluation of the following criteria:
[1]
Applicant's owners' or principals' qualifications
and experience operating in highly regulated industries, including
cannabis, healthcare, pharmaceutical manufacturing, and retail pharmacies,
with preference to experience operating such business within the State
of New Jersey and where the value of owners' experience shall
outweigh the experience of nonowner principals (20%, not to exceed
2,500 words);
[2]
Applicant's qualifications and experience related to public
safety and security, including any of the applicant's owners'
or principals' experience in law enforcement and drug enforcement
(10%, not to exceed 1,000 words), and a summary of the applicant's
plans for storage of products and currency, physical security, video
surveillance, security personnel, and visitor management (10%), (total
possible 20%, not to exceed 2,500 word);
[3]
Applicant's or its owners' experience conducting or
supporting or plans to conduct institutional review board-approved
research involving human subjects that is related to medical cannabis
or substances abuse, where the value of past or ongoing clinical research
with IRB approval shall outweigh plans to conduct such research (5%),
whether the applicant has had any assurance accepted by the U.S. Department
of Health and Human Services indicating the applicant's commitment
to complying with 45 CFR Part 46 (5%), and whether the applicant has
a research collaboration or partnership agreement in effect with an
accredited U.S. school of medicine or osteopathic medicine with experience
conducting cannabis-related research 5% (total possible 10%, not to
exceed 2,500 words);
[4]
Applicant's or its owners' demonstrated commitment
or sufficient experience as responsible employers, defined as the
applicant entity being a party to a labor peace agreement or the applicant
entity or its parent company being a party to a collective bargaining
agreement in the regulated cannabis industry for at least one year
prior to application for a cannabis establishment license, in an effort
to create well-paying jobs with employee benefits in the municipality
and/or paying at $15 minimum wage (20%, not to exceed 1,500 words);
[5]
Summary of the applicant's environmental impact and sustainability
plan; whether the applicant entity or its parent company has any recognitions
from or registrations with federal or New Jersey state environmental
regulators for innovation in sustainability; and whether the applicant
entity or its parent company holds any certification under international
standards demonstrating the applicant has an effective environmental
management system or has an designated sustainability officer to conduct
internal audits to assess the effective implementation of an environmental
management system (5%, not to exceed 500 words);
[6]
Applicant's ties or proposed contribution to the host community,
demonstrated by at least one shareholder's proof of residency
in the Township for two or more years in the past 10 years or at least
one shareholder's continuous ownership of a business based in
the Township for two or more years in the past 10 years (15%, not
to exceed 500 words); and
[7]
Applicant's demonstrated commitment to diversity in its
ownership composition and hiring practices and whether the applicant
entity or its parent company holds any certifications as a NJ minority-owned,
women-owned, or veteran-owned business (10%, not to exceed 1,500 words).
(m)
Notwithstanding the foregoing competitive application process,
a notification of award and conditional municipal license shall entitle
the recipient applicant to pursue a state permit or license in the
appropriate classification for up to six months, which may be extended
in the Township Council's discretion for an additional six months
for good cause. No license to operate shall issue until the applicant
has received a state permit and satisfied other prerequisites of municipal
licensure. If the recipient of a notice of award and conditional license
has not received a state permit or license within 12 months from issuance,
unless extended for good cause, the Township Council shall issue a
new request for application and evaluation all applicants for licensure
under the above criteria.
(5)
Term of license and license renewals.
(a)
Any local license issued pursuant to this chapter shall be valid
for a period of one year from the date of issuance and shall be renewed
in accordance with the provisions of this chapter.
(b)
The Township Council may, at their discretion, adjust the renewal
date of the local license to correlate with an applicant's state
licensing and renewal schedule.
(c)
Renewal of any license shall be governed by any code amendments,
additional restrictions or changes in regulations adopted since the
previous license was issued or renewed.
(d)
Transfer of ownership of any local license or change of location
of any license or modification to expand a licensed premise shall
be subject to the submission of an amended application, Township Planning
or Zoning review and approval.
(e)
Except where the Township Council has received a complete renewal
application along with the requisite fees, and has issued a license
renewal, it shall be unlawful for any person to manufacture, sell,
distribute, transfer, transport, or otherwise remove cannabis or cannabis
products from the premises of any license after the expiration date
recorded on the face of the license.
(f)
Limitations on liability. As a condition to the issuance of
any cannabis business authorization permit, the applicant shall be
required to:
[1]
Execute an agreement, in a form approved by the Township Solicitor,
agreeing to indemnify, defend at applicant's sole cost and expense
and hold harmless the Township of Logan, its officers, officials,
employees, representatives, and agents from any and all claims, losses,
damages, injuries, liabilities or losses, which arise out of or are
in any way related to, the Township's issuance of the cannabis
business authorization permit or the process used by the Township
in making its decision to issue a permit.
[2]
Agree to reimburse the Township of Logan for costs and expenses,
including, but not limited to, attorney fees, litigation costs, and
court costs which the Township of Logan may be required to pay as
a result of any legal challenge related to the Township's approval
of the applicant's cannabis business authorization permit, or
related to the Township's approval of a cannabis activity. Any
participation by the Township of Logan at its own expense in the defense
of any such action shall not relieve or release the applicant(s) from
any obligations imposed under this section.
(g)
Disciplinary actions; sanctions; penalties.
[1]
Disciplinary actions. Procedures for investigation of license
violations and for suspension revocation, or other licensing sanctions
as a result of any such violation shall be as follows:
[2]
Summary suspension. Notwithstanding the foregoing section, when
the Township Council has reasonable grounds to believe that a licensee
has engaged in deliberate and willful violation of any applicable
law or regulation, or that the public health, safety and/or general
welfare has been jeopardized and requires emergency action, the Township
Council may enter a summary suspension order for the immediate suspension
of such license pending further investigation.
[a]
The summary suspension order shall be in writing and shall state
the reasons therefore. The licensee shall be afforded an opportunity
for a hearing as outlined herein.
[b]
The Township Council shall convene a review panel consisting
of the two Council members, a second administrative officer designated
by the Mayor, and the Chief of Police. The hearing shall be scheduled
within 30 days of the date of the order of suspension.
[c]
The review panel is authorized to impose any fines, conditions,
restrictions, suspensions or combination thereof authorized by the
State of New Jersey. In the absence of state specified penalties,
the Township may issue fines up to, but not to exceed, $2,500 per
offense and/or suspension of license for a period not to exceed six
months.
[3]
Inactive licenses. Following the commencement of a Class II
licensed business, the Township Council may suspend or revoke any
license if the licensed premises have been inactive or unoccupied
by the licensee by for at least six months.
[4]
State license. The Township Council may suspend or revoke any
license if the corresponding state license or permit for the subject
location is expired, surrendered, suspended or revoked.
A.
Transfer tax imposed. There is hereby imposed a transfer tax of 2%
on receipts from the sale of cannabis by a cannabis cultivator or
manufacturer, or receipts from the sale of cannabis items from one
cannabis cultivator or manufacturer to another cannabis establishment;
and a tax of 1% of the receipts from each sale by a cannabis wholesaler.
Such 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. The transfer 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.
Tax liability. Every cannabis establishment required to collect a
transfer tax 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 the transfer tax from another
cannabis establishment as if the transfer 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 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 shall be joined as a party in any
action or proceeding brought to collect the transfer tax or user tax.
C.
Collection of taxes and lien. All revenues collected from a transfer
tax imposed pursuant to this section shall be remitted to the Chief
Financial Officer in the manner prescribed herein. The Chief Financial
Officer shall collect and administer any transfer tax imposed pursuant
to this chapter. The municipality may enforce the payment of delinquent
taxes or transfer fees imposed pursuant to this section in the same
manner as provided for municipal real property taxes. In the event
that the transfer tax imposed pursuant to 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. The 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.
D.
Administration of transfer tax. The Chief Financial Officer is charged
with the administration and enforcement of the provisions of this
chapter, and is empowered to prescribe, adopt, promulgate and enforce
rules and regulations relating to any matter pertaining to the administration
and enforcement of this chapter, including provisions for reexamination
and corrections of declarations and returns, and of payments alleged
or found to be incorrect, or as to which an overpayment is claimed
or found to have occurred, and to prescribe forms necessary for the
administration of this chapter. Should a cannabis establishment fail
or refuse to provide adequate information to the Chief Financial Officer
to determine the amount of tax due, the Chief Financial Officer may
use information provided to the Chief Financial Officer from other
sources (i.e., the Commission or Department of Treasury) to determine
the amount of tax liability.
(1)
It shall be the duty of the Chief Financial Officer to collect and
receive the taxes, fines, and penalties imposed by this chapter. It
shall also be the duty of the Chief Financial Officer to keep a record
showing the date of such receipt. The Chief Financial Officer is authorized
to enter into agreements with the State of New Jersey to obtain information
to facilitate administration of the tax. The Chief Financial Officer
is authorized to issue a ruling upon written request of a taxpayer
or upon its own volition.
(2)
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.
E.
Recordkeeping. Taxpayers liable for the transfer tax are required
to keep such records as will enable the filing of true and accurate
returns or the tax and such records shall be preserved for a period
of not less than three years from the filing date or due date, whichever
is later, in order to enable the Chief Financial Officer or any agent
designated by him to verify the correctness of the declarations or
returns filed. If records are not available in the municipality to
support the returns which were filed or which should have been filed,
the taxpayer will be required to make them available to the Chief
Financial Officer either by producing them at a location in the municipality
or by paying for the expenses incurred by the Chief Financial Officer
or his agent in traveling to the place where the records are regularly
kept.
F.
Returns. All cannabis establishments operating in the municipality
are required to file a transfer tax return with the Chief Financial
Officer to report their sales during each calendar quarter and the
amount of tax in accordance with the provision of this chapter. Returns
shall be filed and payments of tax imposed for preceding calendar
quarter shall be made on or before the last day of April, July, October
and January, respectively. A taxpayer who has overpaid the transfer
tax, or who believes it is not liable for the tax, may file a written
request on an amended tax return with the Chief Financial Officer
for a refund or credit of the tax. For amounts paid as a result of
a notice asserting or informing a taxpayer of an underpayment, a written
request for a refund shall be filed with the Chief Financial Officer
within two years of the date of the payment. Thereafter, no refund
will issue.
G.
Confidentiality. The returns filed by taxpayers, and the records
and files of the Chief Financial Officer respecting the administration
of the transfer tax, shall be considered confidential and privileged
and neither the municipality nor any employee or agent engaged in
the administration thereof or changed with the custody of any such
records or files, nor any former officer or employee, nor any person
who may have secured information therefrom, shall divulge, disclose,
use for their own personal advantage, or examine for any reason other
than a reason necessitated by the performance of official duties any
information obtained from the said records or files or from any examination
or inspection of the premises or property of any person except as
required by the New Jersey Open Public Records Act or Right to Know
Law.[1] Neither the Chief Financial Officer nor any employee engaged
in such administration or charged with the custody of any such records
or files shall be required to produce any of them for the inspection
of any person or for use in any action or proceeding except when the
records or files or the facts shown thereby are directly involved
in an action or proceeding under the provisions of the State Uniform
Tax Procedure Law[2] or of the tax law affected, or where the determination
of the action or proceeding will affect the validity or amount of
the claim of the municipality under the tax provisions of this chapter.
H.
Audit and assessment.
(1)
The Chief Financial Officer may initiate an audit by means of an
audit notice. If, as a result of an examination conducted by the Chief
Financial Officer, a return has not been filed by a taxpayer or a
return is found to be incorrect and transfer taxes are owed, the Chief
Financial Officer is authorized to assess and collect any tax due.
If no return has been filed and tax is found to be due, the tax actually
due may be assessed and collected with or without the formality of
obtaining a return from the taxpayer. Deficiency assessments (i.e.,
where a taxpayer has filed a return but is found to owe additional
tax) shall include taxes for up to three years to the date when the
deficiency is assessed. Where no return was filed, there shall be
no limit to the period of assessment.
(2)
Upon proposing an assessment, the Chief Financial Officer shall send
the taxpayer an interim notice by certified, mail, return receipt
requested, which advises the taxpayer of additional taxes that are
due. Should the taxpayer wish to dispute the assessment administratively
by requesting a hearing with the Chief Financial Officer it must do
so within 30 days of the date of such interim notice. If, after the
Chief Financial Officer sends an interim notice, a taxpayer fails
to timely request a hearing with the Chief Financial Officer or requests
a hearing and after conducting a hearing, the Chief Financial Officer
determines that the taxes are due, the Chief Financial Officer shall
send the taxpayer by certified mail, return receipt request, a final
notice. Should the taxpayer wish to dispute the assessment set forth
in the final notice, he or she must initiate an appeal in the New
Jersey Tax Court within 90 days after the mailing of any final notice
regarding a decision, order, finding, assessment, or action hereunder.
I.
Time limitations. The following periods of limitations shall apply
to suits for collection of taxes: When a return has been filed but
no tax paid, any suit brought to recover the tax due and unpaid shall
be filed within two years after the return was due or filed, whichever
is later. Where no return was filed or a fraudulent return was filed,
there shall be no limits to file suit for the collection of taxes.
Where, before the expiration of the time presecribed in this section
for the filing of a lawsuit against the taxpayer, both the Chief Financial
Officer and taxpayer have consented in writing to its extension after
such time, the suit may be filed at any time prior to the expiration
of the period agreed upon. The period so agreed upon may be extended
by subsequent agreements in writing made before the expiration of
the period previously agreed upon.
J.
Hearings. Any person who receives an interim notice from the Chief
Financial Officer may within 30 days after the date of an interim
notice, request a hearing with the Chief Financial Officer. Any person
who fails to request a Chief Financial Officer's hearing in a
timely manner waives the right to administratively contests any element
of the assessments. The Chief Financial Officer shall accept payments
of disputed tax amounts under protest pending appeals; however, any
request for refund of such monies must be filed in accordance with
this section.
K.
Appeals. Any aggrieved taxpayer may, within 90 days after the mailing
of any final notice regarding a decision, order, finding, assessment,
or action hereunder, or publication of any rule, regulation, or policy
of the Chief Financial Officer, appeal to the Tax Court pursuant to
the jurisdiction granted by N.J.S.A. 2B:13-2a(3) to review actions
or regulations of municipal officials by filing a complaint in accordance
with the New Jersey Court Rule 8:3-1. The appeal provided by this
section shall be the exclusive remedy available to any taxpayer for
review of a final decision of the Chief Financial Officer in respect
to a determination of liability for the tax imposed by this Chapter.
