Township of Evesham, NJ Taxation

There is hereby imposed within the Township of Evesham a tax to be charged in accordance with the provisions of N.J.S.A. 54:32D-1 et seq. on charges of rent for every occupancy within a hotel, motel or boardinghouse room. The tax shall be at the rate of 3% on charges of rent for every occupancy on and after July 1, 2004. Said tax shall be in addition to any and all taxes or fees imposed under state statute or local ordinances upon the occupancy of a hotel, motel or boardinghouse. For purposes of this article, the word "hotel" shall include motels and boardinghouses, as well as hotels.

§ 141-2 Payment of and responsibility for occupancy tax.

All taxes imposed by this article shall be paid by the occupant of the room. "Occupant" shall be defined as a person who, for a consideration, uses, possesses or has the right to use or possess any room in a hotel, motel or boardinghouse under any lease, concession, permit, right of access, license to use or other agreement or otherwise.

The owner of the hotel and/or the person or entity making the hotel room available for occupancy shall not assume or absorb any of the tax imposed by this article.

The owner of the hotel and/or the person making the room available for occupancy shall not in any manner advertise or hold out to any person or to the public in general, in any manner, directly or indirectly, that the tax will be assumed or absorbed by the owner, that the tax will not be separately charged and stated to the occupant or that the tax would be refunded to the occupant.

§ 141-3 Collection of tax.

The tax imposed by this article shall be collected on behalf of the municipality by the person collecting the rent from the hotel occupant. That person shall either be the owner of the hotel, the manager or sales person or other employee of the owner who arranges with the occupant for the rental of the room.

Individual liability. Each person required to collect the tax imposed by this article shall be personally liable for the tax imposed, collected or required to be collected hereunder. Any such person shall have the same right in respect to collecting the tax from an occupant as if the tax were a part of the rent and payable at the same time.

§ 141-4 Payment of tax to state; distribution by state to Township.

A person required to collect the tax imposed under this article as described above shall, on or before the 28th day of each month, forward to the Director of the Division of Taxation in the Department of the Treasury the tax collected in the preceding month and shall make and file a return for the preceding month with the Director on any form and containing any information as the Director shall prescribe as necessary to determine liability for the tax in the preceding month during which the person was required to collect the tax. Should the Director determine to require payments of tax liability at any intervals and based upon any collection classifications other than described in this article, the person required to collect the tax shall comply with any determinations made in that regard by the Director.

The Director of the Division of Taxation shall collect and administer the tax imposed under this article, and shall determine and certify to the State Treasurer on a quarterly or more frequent basis the amount of revenues collected in each municipality. The State Treasurer, upon certification of the Director and upon the warrant of the State Comptroller, shall pay and distribute on a quarterly or more frequent basis, as prescribed by the State Treasurer, the amount of revenues determined and certified as described above to the Township of Evesham.

§ 141-5 Violations and penalties.

Each assumption or absorption of a tax by an owner or employee of an owner, as described in § 141-2C above, shall be deemed a separate offense, and each representation or advertisement by a vendor as described in said § 141-2C, for each day the representation or advertisement continues, shall be deemed a separate offense.

Penalties. For any violation or offense committed under this article, the offender shall be liable for a fine of not less than $100 nor more than $1,250; for a term in the county jail not to exceed 90 days; or a period of community service not to exceed 90 days in the discretion of the Judge of the Municipal Court.

Article II Transfer and User Taxes on Legalized Cannabis

[Adopted 8-11-2021 by Ord. No. 32-8-2021]

§ 141-6 Purpose.

The purpose of this article is to impose a tax on the sale of cannabis or cannabis products by licensed commercial cannabis businesses operating in the Township of Evesham pursuant to the New Jersey Cannabis Regulatory, Enforcement Assistance and Marketplace Modernization Act, to specify the type of tax and rate of tax to be levied and the method of collection, and to comply with all requirements for the imposition of a transfer or user tax pursuant to state law. This article is enacted solely to raise revenue and not for regulation. This article does not authorize the conduct of any business or activity in the Township of Evesham, but provides for the taxation of such businesses or activities as they occur.

§ 141-7 Definitions.

The terms and definitions enumerated at § 66-2 of Chapter 66 (Cannabis) of the Township Code are hereby incorporated by reference as if fully set forth herein. For the purpose of this article, words and phrases herein shall have the same meanings as codified under state law, N.J.S.A. 40:48I-1(d), and any amendments or supplements thereto, and the rules and regulations of the Cannabis Regulatory Commission. In the event of a conflict in the meaning of words or phrases as between the Township Code and the foregoing laws or regulations of the state concerning legal cannabis, state law or regulations shall govern.

§ 141-8 Imposition of cannabis transfer tax and user tax.

The Township of Evesham hereby imposes and shall collect certain local option taxes on cannabis business activity as follows:

A municipal transfer tax is hereby imposed on the receipts of each sale by a licensed cannabis business operating in the Township of Evesham at the rate of 2% of the receipts from each sale by a cannabis cultivator, 2% of the receipts from each sale by a cannabis manufacturer, 1% of the receipts from each sale by a cannabis wholesaler and 2% of the receipts from each sale by a cannabis retailer.

A municipal user tax is hereby imposed, at the equivalent transfer tax rates, on any concurrent license holder operating more than one cannabis establishment. 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 section, 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.

§ 141-9 Payment of taxes.

[Amended 6-28-2023 by Ord. No. 12-6-2023]

All revenues collected from Chapter 141, Article II of the Evesham Township Code imposed by ordinance pursuant to this section shall be remitted to the Evesham Township's Chief Financial Officer on a quarterly basis payable for the prior three month's activities. The revenues due on April 15 of each year shall include all transfer taxes or user taxes collected for the prior year months of January, February, and March. The revenues due on July 15 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 October 15 of each year shall include all transfer taxes and user taxes collected for the immediate prior months of July, August, and September. The revenues due on January 15 of each year shall include all transfer taxes and user taxes collected for the immediate prior months of October, November, and December.

Interest on late payments shall be assessed at 18% per annum. There shall be a five-day grace period for late payments.

In addition to the aforementioned requirements, an annual report in conformance with Standards for Attestation Engagements (SSAE) No. 19, Agreed-Upon Procedures Engagements, or any superseding SSAE, as promulgated by the American Institute of Certified Public Accounts must be provided to the Township within 90 days of the entity's fiscal year end. The report shall contain the following:

(1)

Confirmation of total taxable receipt activity of the entity broken out by taxation class.

(2)

A recalculation of tax due to the Township.

(3)

A reconciliation of tax due to the Township and tax remitted.

(4)

Any over or under payment of tax due as a result will be adjusted on the following quarter's tax remittance.

Failure to comply with the above policies may result in an entity's municipal cannabis license being revoked.

§ 141-10 Administration.

The Chief Financial Officer is hereby authorized and empowered to administer, regulate and collect payment of all taxes imposed by this article.

The Chief Financial Officer may order an audit of any taxpayer under this article for the purpose of ascertaining the correctness or completeness of any return or payment.

§ 141-11 Violations and penalties.

The payment of delinquent taxes or transfer fees imposed by this article shall be enforced in the same manner as provided for delinquent real property taxes.

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 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 the parcel for unpaid property taxes due and owing in the same year.

In the event that a lien is imposed on a delinquent taxpayer pursuant to this section, the Township 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. The lien shall be enforced as a municipal lien in the same manner as all other municipal liens are enforced.