Borough of Bergenfield, NJ Chapter 127 Cannabis Tax

[HISTORY: Adopted by the Mayor and Council of the Borough of Bergenfield as indicated in article histories. Amendments noted where applicable.]

Article I Local Cannabis Transfer Tax and User Tax

[Adopted 3-1-2022 by Ord. No. 22-2591]

§ 127-1 Definitions.

For purposes of this article, the terms set forth herein shall have the same meaning as set forth in the New Jersey Cannabis Regulatory, Enforcement Assistance, and Marketplace Modernization Act, N.J.S.A. 24:6I-1 et seq.

§ 127-2 Local cannabis transfer tax.

The Borough hereby adopts and imposes a local cannabis transfer tax in the amount of 2% on receipts from each sale of cannabis by a cannabis cultivator to another cannabis cultivator; cannabis items from one cannabis establishment to another cannabis establishment; or any combination thereof.

§ 127-3 Local cannabis user tax.

A. The Borough hereby adopts and imposes a local cannabis user tax, at the same and equivalent rates as established for the local cannabis transfer tax rates set forth in § 127-2 hereinabove.

B. The local cannabis user tax shall be imposed upon any concurrent license holder operating more than one cannabis business, and shall be imposed on the value of each transfer or use of cannabis or cannabis items not otherwise subject to the local cannabis transfer tax imposed pursuant to § 127-2 hereinabove, from the license holder's business that is located in the Borough to any of the other license holder's businesses, whether located in the Borough or in another municipality.

§ 127-4 Other local cannabis tax regulations.

A. The local cannabis transfer tax and user tax imposed pursuant to this article shall be in addition to any other tax imposed by law.

B. The local cannabis transfer tax and user tax shall be collected or paid, and remitted to the Borough by the cannabis business from the cannabis business purchasing or receiving the cannabis or cannabis item, or from the consumer at the point of sale, on behalf of the Borough by the cannabis retailer selling the cannabis item to that consumer.

C. The local cannabis transfer tax and 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.

D. Every cannabis business required to collect the local cannabis transfer tax and user tax imposed by this article shall be personally liable for the local cannabis transfer tax and user tax imposed, collected, or required to be collected under this article. Any cannabis business shall have the same right with respect to collecting the local cannabis transfer tax and user tax from another cannabis business or the consumer as if the local cannabis transfer tax or user tax was a part of the sale and payable at the same time, or with respect to nonpayment of the local cannabis transfer tax and user tax by the cannabis business or consumer, as if the local cannabis transfer tax and 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 Financial Officer of the Borough shall be joined as a party in any action or proceeding brought to collect a local cannabis transfer tax and user tax.

E. No cannabis business required to collect the local cannabis transfer tax and user tax 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 local cannabis transfer tax and user tax will not be separately charged and stated to another cannabis business or the consumer, or that the local cannabis transfer tax and user tax will be refunded to the cannabis business or the consumer.

F. All revenues collected from the local cannabis transfer tax and user tax pursuant to this article shall be remitted to the Chief Financial Officer of the Borough. The Chief Financial Officer shall collect and administer the local cannabis transfer tax and user tax imposed by this article. The Borough shall enforce the payment of delinquent local cannabis transfer tax and user tax in the same manner as provided for municipal real property taxes.

G. In the event that the local cannabis transfer tax and user tax imposed by this article is not paid as and when due by a cannabis business, the unpaid balance, and any interest accruing thereon, shall be a lien on the parcel of real property comprising the cannabis business. 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. In the event of a delinquency, the Chief Financial Officer shall file with 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 business. The lien shall be enforced as a municipal lien in the same manner as all other municipal liens are enforced.