[8-16-2021 by Ord. No.
MC 2021-25]
A. The cannabis
transfer tax in Plainfield shall be fixed at a uniform percentage
rate of 2% on all sales or transfers of cannabis products from any
of the cannabis establishments that are located within the geographical
boundaries of the City of Plainfield. This tax shall be imposed on:
1. Receipts
from the sale of cannabis by a cannabis cultivator to another cannabis
cultivator;
2. Receipts
from the sale of cannabis items from one cannabis establishment to
another cannabis establishment;
3. Receipts
from the retail sales of cannabis items by a cannabis retailer to
retail consumers who are 21 years of age or older; or
B. A 1% transfer
tax shall be collected from receipts from each sale by a cannabis
wholesaler located within the geographical boundaries of the City
of Plainfield.
C. A user
tax is hereby also established at the same rate 2% of the transfer
tax contained herein and 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 P.L. 2021, c. 16, from the license
holder’s establishment that is located in the City of Plainfield
to any of the other license holder’s establishments, whether
located in the City of Plainfield or another municipality.
D. The transfer
tax or user tax imposed by this chapter shall be in addition to any
other tax imposed by law. Any transaction for which the transfer tax
or user tax is imposed, or could be imposed, pursuant to this section,
other than those which generate receipts from the retail sales by
cannabis retailers, shall be exempt from the tax imposed under the
"Sales and Use Tax Act" ( N.J.S.A. 54:32B-1 et seq). The transfer
tax or user tax will be assessed and collected pursuant to established
state law and administrative rules and regulations regarding same.
E. Within ninety (90) days after the close of each fiscal year, all cannabis establishments located within the City shall submit to the City Tax Collector an Auditor’s Report for the preceding fiscal year. The Auditor’s Report shall be a complete financial statement outlining the financial status of the cannabis establishment. The Report shall clearly identify all sales, transfers and uses of cannabis or cannabis items that is subject to the imposition of tax pursuant to this Section
20:1-1. The contents of the Auditor’s Report shall have been prepared in conformity with generally accepted accounting principles. The Auditor’s Report shall be certified as to its conformance with such principles by a certified public accountant who is licensed to practice that profession in the State of New Jersey.
[Added 5-9-2022 by Ord. No. MC 2022-18]