It is the purpose of this legislation to implement the New Jersey
Cannabis Regulatory, Enforcement Assistance, and Marketplace Modernization
Act (the "Personal Use Act"), N.J.S.A. 24:6I-31 to 24:6I-56, and the
Jake Honig Compassionate Use Medical Cannabis Act (approved July 2,
2019), P.L. 2019, c. 153, revising and supplementing P.L. 2009, c.
307, N.J.S.A. 24:6I-1 through 24:6I-30, which authorizes the governing
body of a municipality to adopt an ordinance establishing a transfer
tax and user tax on the sale of cannabis and cannabis items by cannabis
establishments located in the City of Hoboken.
A.
There
is hereby imposed, by the City of Hoboken, a transfer tax of 2% on
any medical cannabis dispensed by a medical cannabis dispensary, including
medical cannabis that is furnished by the dispensary to a medical
cannabis handler for delivery to a registered qualifying patient or
the patient's caregiver medicinal cannabis purchase tax in the City
of Hoboken. (N.J.S.A. 24:6I-10)
B.
There
is hereby imposed, by the City of Hoboken, a transfer tax of 1% of
the receipts from each sale by a cannabis wholesaler, and 2% of the
receipts from each sale by a cannabis retailer, including sales transacted
by a cannabis delivery service. This transfer tax shall include receipts
from the sale of cannabis items from one cannabis establishment to
another cannabis establishment; receipts from the retail sales of
cannabis items by a cannabis retailer to retail consumers who are
21 years of age or older; or any combination thereof. (N.J.S.A. 24:6I-31
et seq.)
C.
There is further imposed, by the City of Hoboken, a user tax at the equivalent tax rates, on any concurrent license holder, as permitted by Section 33 of P.L. 2021, c. 16 (N.J.S.A. 24:6I-46), 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 Subsections A and B above, from the license holder's establishment that is located in the City of Hoboken to any of the other license holder's establishments, whether located in the City of Hoboken or another municipality. (N.J.S.A. 24:6I-31 et seq.)
The cannabis transfer tax or user tax shall be in addition to
any other fee imposed pursuant to statute or local ordinance or resolution
by any governmental entity upon the cannabis wholesaler, cannabis
retailer, medical cannabis dispensary or cannabis delivery service.
A.
All taxes
imposed by this article shall be collected on behalf of the City of
Hoboken by the person collecting the payment from the transfer, sale,
dispensing and/or delivery of cannabis items permitted by N.J.S.A.
24:6I-1 et seq. and remitted to the Chief Financial Officer of the
City of Hoboken. Each person required to collect the tax herein imposed
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 a customer as if the tax were
a part of the purchase and payable at the same time; provided that
the Chief Financial Officer of the City shall be joined as a party
in any action or proceeding brought to collect the tax.
B.
In the
event that the transfer tax or user tax imposed by ordinance 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 Chief Financial Officer
shall file in the office of the City 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.
C.
The transfer
taxes and user taxes collected by the City shall be set aside in a
separate account established for collection and disbursement of said
funds by the Cannabis Review Board with the consent and approval,
by resolution, of the City Council. A minimum of 75% of annual cannabis
tax revenue shall be appropriated to support social justice initiatives,
cannabis education programs, the special improvement district, community
policing and similar social programs. A maximum of 25% of annual cannabis
tax revenue may be appropriated to the budget of the City of Hoboken.
A copy of this article shall be transmitted to the State Treasurer
and to each cannabis wholesaler, cannabis retailer, medical cannabis
dispensary and cannabis delivery service located within the City of
Hoboken.
