[Adopted 8-17-2021 by Ord. No. 21-2027]
The purpose of this article is to implement the provisions of
tnhe New Jersey Cannabis Regulatory, Enforcement Assistance, and Marketplace
Modernization Act (the "Act" or "CREAMMA") set forth at N.J.S.A. 24:6I-46
and N.J.S.A. 40:48I-1, which authorize a municipality to impose transfer
and user taxes on cannabis establishments.
All terms herein shall be defined as set forth in Section 3
of CREAMMA, N.J.S.A. 24:6I-33.
A.
All cannabis establishments operating in the Borough shall be subject
to the following transfer tax on the sale of cannabis or cannabis-related
items:
(1)
Class 5 cannabis retailers: 2% of the receipts from each sale.
B.
The transfer tax imposed pursuant to this section shall be in addition
to any other tax or fee imposed pursuant to statute or local ordinance
or resolution by any governmental entity with regard to cannabis.
C.
Any transaction for which the transfer tax is imposed shall be exempt
from the tax imposed under the Sales and Use Tax Act, N.J.S.A. 54:32B-1
et seq.
D.
The transfer tax shall be collected or paid, and remitted to the
Borough by 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.
A.
Any concurrent license holder operating more than one cannabis establishment
shall be subject to a two-percent user tax. 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 pursuant to
this article, from the license holder's establishment that is
located in the Borough to any of the other license holder's establishments,
whether located in the Borough or in another municipality.
B.
The user tax shall be in addition to any other tax or fee imposed
pursuant to statute or local ordinance or resolution by any governmental
entity with regard to cannabis. Any transaction for which the user
tax is imposed is exempt from the tax imposed under the Sales and
Use Tax Act, N.J.S.A. 54:32B-1 et seq.
C.
The 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.
In accordance with the provisions of CREAMMA:
A.
Every cannabis establishment required to collect the transfer and
user taxes imposed by this article shall be personally liable for
the transfer and user tax imposed, collected, or required by this
article and CREAMMA.
B.
Any cannabis establishment collecting a transfer tax or user tax
shall have the same right with respect to collecting the tax from
another cannabis establishment or the consumer as if the tax was a
part of the sale and payable at the same time. With respect to nonpayment
of the transfer tax or user tax by the cannabis establishment or consumer,
as if the tax was part of the purchase price of the cannabis or cannabis
item and payable at the same time, provided that the Borough's
chief financial officer is joined as a party in any action or proceeding
brought to collect the transfer tax or user tax.
C.
No cannabis establishment required to collect the transfer and user
taxes imposed by 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.
A.
All revenues collected from the transfer tax and user tax imposed
pursuant to this article shall be remitted to the Borough's chief
financial officer on a monthly basis.
B.
The Borough 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.
C.
In the event that the transfer tax or user tax imposed by 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 Borough 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 Borough taxes, and shall be on a
parity with and deemed equal to the Borough lien on the parcel for
unpaid property taxes due and owing in the same year.
D.
The Borough shall file in the office of its Tax Collector a statement
showing the amount and due date of the unpaid balance of cannabis
taxes 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.
