Borough of East Rutherford, NJ Taxation

It is the purpose of this article to implement the provisions of P.L. 2003, c. 114, which authorizes the governing body of a municipality to adopt an ordinance imposing a tax at a uniform percentage rate not to exceed 1% on charges of rent for every occupancy on or after July 1, 2003, but before July 1, 2004, and not to exceed 3% on charges of rent for every occupancy on or after July 1, 2004, of a room or rooms in a hotel subject to taxation pursuant to Subsection (d) of Section 3 of P.L. 1966, c. 40 (N.J.S.A. 54:32B-3), which shall be in addition to any other tax or fee imposed pursuant to statute or local ordinance or resolution by any governmental entity upon the occupancy of a hotel room.

§ 263-2 Tax established.

There is hereby established a hotel and motel room occupancy tax in the Borough of East Rutherford, which shall be fixed at a uniform percentage rate of 1% on charges of rent for every occupancy of a hotel or motel room in the Borough of East Rutherford on or after October 1, 2003, but before July 1, 2004, and 3% on charges of rent for every occupancy of a hotel or motel room in the Borough of East Rutherford on or after July 1, 2004, of a room or rooms in a hotel subject to taxation pursuant to Subsection (d) of Section 3 of P.L. 1966, c. 40, N.J.S.A. 54:32B-3 (sales tax).

§ 263-3 Tax to be in addition to other taxes and fees.

The hotel and motel room occupancy tax shall be in addition to any other tax or fee imposed pursuant to statute or local ordinance or resolution by any governmental entity upon the occupancy of a hotel room.

§ 263-4 Statutory requirements; violations and penalties.

In accordance with the requirements of P.L. 2003, c. 114:

All taxes imposed by this article shall be paid by the purchaser.

A vendor shall not assume or absorb any tax imposed by this article.

A vendor 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 vendor, that the tax will not be separately charged and stated to the customer or that the tax will be refunded to the customer.

Each assumption or absorption by a vendor of the tax shall be deemed a separate offense, and each representation or advertisement by a vendor for each day that the representation or advertisement continues shall be deemed a separate offense.

Any person who violates any provision of this article shall, upon conviction thereof, be punished by a fine not exceeding $500 or by imprisonment for a term not exceeding 90 days, or both. The continuation of each successive day shall constitute a separate offense, and the person or persons allowing or permitting the continuation of the violations may be punished as provided for above for each separate offense.

§ 263-5 Collection of tax.

The tax imposed by this article shall be collected on behalf of the Borough of East Rutherford by the person collecting the rent from the hotel or motel customer. 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 rent and payable at the same time; provided that the Chief Financial Officer of the Borough of East Rutherford shall be joined as a part in any action or proceeding brought to collect the tax.

Article II Cannabis Transfer and User Tax

[Adopted 6-20-2023 by Ord. No. 2023-14]

§ 263-6 General provisions.

Local tax established. There is hereby established a local transfer and user tax imposed as follows:

(1)

A local transfer tax shall be imposed on receipts from the sale of cannabis by a cannabis cultivator to another cannabis cultivator; receipts from the sale of cannabis items from one cannabis establishment to another cannabis establishment; or any combination thereof.

(2)

The tax rate shall be 2% of the receipts from each sale by a cannabis cultivator; 2% of the receipts from each sale by a cannabis manufacturer; and 1% of the receipts from each sale by a cannabis wholesaler.

(3)

A user tax shall be imposed 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, from the license holder's establishment that is located in the Borough of East Rutherford to any of the other license holder's establishments, whether located in the municipality or another municipality.

(4)

The local transfer and user tax shall be subject to all applicable requirements in P.L. 2021, c. 16 (N.J.S.A. 40:48I-1).

§ 263-7 Other local cannabis tax regulations.

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

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.

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.

Every cannabis business required to collect the local cannabis transfer tax and user tax imposed by this section shall be personally liable for the local cannabis transfer tax and user tax imposed, collected, or required to be collected under this section. 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.

No cannabis business required to collect the local cannabis transfer tax and user tax pursuant to this section 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.

All revenues collected from the local cannabis transfer tax and user tax pursuant to this section 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 section. 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.

In the event that the local cannabis transfer tax and user tax imposed by this section 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 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. 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.

§ 263-8 Administration of transfer tax.

The Borough's Chief Financial Officer or his delegate is charged with the administration and enforcement of the provisions of this article, and is empowered to prescribe, adopt, promulgate and enforce rules and regulations relating to any matter pertaining to the administration and enforcement of this article, including provisions for the reexamination and corrections of declarations and returns, and of payments alleged or found to be incorrect, or as to which an overpayment is claimed or found to have occurred, and to prescribe forms necessary for the administration of this article. Should a cannabis establishment fail or refuse to provide adequate information to the Chief Financial Officer to determine the amount of tax due, the Chief Financial Officer may use information provided to the Chief Financial Officer from other sources (e.g., the New Jersey Cannabis Regulatory Commission or Department of Treasury) to determine the amount of tax liability.

It shall be the duty of the Chief Financial Officer to collect and receive the taxes, fines, and penalties imposed by this article. It shall also be the duty of the Chief Financial Officer to keep a record showing the date of such receipt. The Chief Financial Officer is authorized to enter into agreements with the State of New Jersey to obtain information to facilitate administration of the tax. The Chief Financial Officer is authorized to issue a ruling upon written request of a taxpayer or upon his or her own volition.

The Chief Financial Officer is hereby authorized to examine the books, papers, and records of any taxpayer to verify the accuracy of any declaration or return, or if no declaration or return was filed, to ascertain the tax due. Every taxpayer is hereby directed and required to give to the Chief Financial Officer, or to any agent designated by him/her, the means, facilities and opportunity for such examinations and investigations, as are hereby authorized.

§ 263-9 Recordkeeping.

Taxpayers liable for the transfer tax are required to keep such records as will enable the filing of true and accurate returns or the tax and such records shall be preserved for a period of not less than three years from the filing date or due date, whichever is later, in order to enable the Chief Financial Officer or any agent designated by him or her to verify the correctness of the declarations or returns filed. If records are not available in the Borough to support the returns which were filed or which should have been filed, the taxpayer will be required to make them available to the Chief Financial Officer either by producing them at a location in the Borough or by paying for the expenses incurred by the Chief Financial Officer or his or her agent in traveling to the place where the records are regularly kept.

§ 263-10 Returns.

All cannabis establishments operating in the Borough are required to file a transfer tax return with the Chief Financial Officer to report their sales during each calendar quarter and the amount of tax in accordance with the provisions of this article. Returns shall be filed, and payments of tax imposed for the preceding calendar quarter shall be made on or before the last day of April, July, October, and January, respectively. A taxpayer who has overpaid the transfer tax, or who believes it is not liable for the tax, may file a written request on an amended tax return with the Chief Financial Officer for a refund or a credit of the tax. For amounts paid as a result of a notice asserting or informing a taxpayer of an underpayment, a written request for a refund shall be filed with the Chief Financial Officer within two years of the date of the payment.

§ 263-11 Confidentiality.

The returns filed by taxpayers, and the records and files of the Chief Financial Officer respecting the administration of the transfer tax, shall be considered confidential and privileged and neither the Borough nor any employee or agent engaged in the administration thereof or charged with the custody of any such records or files, nor any former officer or employee, nor any person who may have secured information therefrom, shall divulge, disclose, use for their own personal advantage, or examine for any reason other than a reason necessitated by the performance of official duties any information obtained from the said records or files or from any examination or inspection of the premises or property of any person. Neither the Chief Financial Officer nor any employee engaged in such administration or charged with the custody of any such records or files shall be required to produce any of them for the inspection of any person or for use in any action or proceeding except when the records or files or the facts shown thereby are directly involved in an action or proceeding under the provisions of the State Uniform Tax Procedure Law[1] or of the tax law affected, or where the determination of the action or proceeding will affect the validity or amount of the claim of the Borough under the tax provisions of this article.

[1]

Editor's Note: See N.J.S.A. 54:48-1 et seq.

§ 263-12 Audit and assessment.

The Chief Financial Officer may initiate an audit by means of an audit notice. If, as a result of an examination conducted by the Chief Financial Officer, a return has not been filed by an taxpayer or a return is found to be incorrect and transfer taxes are owed, the Chief Financial Officer is authorized to assess and collect any tax due. If no return has been filed and tax is found to be due, the tax actually due may be assessed and collected with or without the formality of obtaining a return from the taxpayer. Deficiency assessments (i.e., where a taxpayer has filed a return but is found to owe additional tax) shall include taxes for up to three years to the date when the deficiency is assessed. Where no return was filed, there shall be no limit to the period of assessment. Upon proposing an assessment, the Chief Financial Officer shall send the taxpayer an interim notice by certified mail, return receipt requested, which advises the taxpayer of additional taxes that are due. Should the taxpayer wish to dispute the assessment administratively by requesting a hearing with the Chief Financial Officer, it must do so within 30 days of the date of such interim notice. If, after the Chief Financial Officer sends an interim notice, a taxpayer fails to timely request a hearing with the Chief Financial Officer or requests a hearing and after conducting a hearing, the chief financial officer determines that the taxes are due, the Chief Financial Officer shall send the taxpayer by certified mail, return receipt requested, a final notice. Should the taxpayer wish to dispute the assessment set forth in the final notice, he or she must initiate an appeal in the New Jersey Tax Court within 90 days after the mailing of any final notice regarding a decision, order, finding, assessment, or action hereunder.

§ 263-13 Time limitations.

Limitations shall apply to lawsuits for collection of taxes as follows: When a return has been filed but no tax paid, any suit brought to recover the tax due and unpaid shall be filed within two years after the return was due or filed, whichever is later. Where no return was filed or a fraudulent return was filed, there shall be no limits to file suit for the collection of taxes. Where, before the expiration of the time prescribed in this section for the filing a lawsuit against the taxpayer, both the Chief Financial Officer and the taxpayer have consented in writing to its extension after such time, the suit may be filed at any time prior to the expiration of the period agreed upon. The period so agreed upon may be extended by subsequent agreements in writing made before the expiration of the period previously agreed upon.

§ 263-14 Hearings.

Any person who receives an interim notice from the Chief Financial Officer may within 30 days after the date of an interim notice, request a hearing with the Chief Financial Officer. Any person who fails to request such a hearing in a timely manner waives the right to administratively contest any element of the assessment. The Chief Financial Officer shall accept payments of disputed tax amounts under protest pending appeals; however, any request for refund of such monies must be filed in accordance with this section.

§ 263-15 Appeals.

Any aggrieved taxpayer may, within 90 days after the mailing of any final notice regarding a decision, order, finding, assessment, or action hereunder, or publication of any rule, regulation or policy of the Chief Financial Officer, appeal to the Tax Court pursuant to the jurisdiction granted by N.J.S.A. 2B:13-2a(3) to review actions or regulations of municipal officials by filing a complaint in accordance with New Jersey Court Rule 8:3-1. The appeal provided by this section shall be the exclusive remedy available to any taxpayer for review of a final decision of the Chief Financial Officer in respect to a determination of liability for the tax imposed by this article.