HomeMy Public PortalAboutOrd. 22-08(1, rblunurt
No. #22 -8 of t4Q
Councilman Presents the following Ordinance Seconded by Councilman
AN ORDINANCE AMENDING AND SUPPLEMENTING THE CODE OF THE
BOROUGH OF CARTERET TO ADD A NEW CHAPTER REGARDING CANNABIS
FEES
BE IT ORDAINED by the Mayor and Council of the Borough of Carteret as follows:
SECTION I
The Code of the Borough of Carteret is hereby amended and supplemented to add a new chapter,
entitled, "CANNABIS PEES ".
SECTION H
The First Section of said Chapter, entitled "Definitions." shall include the following:
"Cannabis" means all parts of the plant Cannabis Saliva L, whether growing or not, the
seeds thereof, and every compound, manufacture, salt, derivative, mixture, or preparation
of the plant or its seeds, except those containing resin extracted from the plant, which are
cultivated and, when applicable, manufactured in accordance with N.J.S.A. 24:61 -1 et al,
for use in Cannabis products as set forth in this act, but shall not include the weight of
any other ingredient combined with cannabis to prepare topical or oral administrations,
food, drink, or other product. "Cannabis" does not include: medical cannabis dispensed to
registered qualifying patients pursuant to the "Jake Honig Compassionate Use Medical
Cannabis Act ", P.L. 2009, c.307 (C.24:61 -1 et al), and P.L. 2015, c.158 (C.18A:40 -12.22
at al); marijuana defined in NJSA 2C:35 -2 and applied to any offense set forth in chapters
35, 35A and 36 of Title 2C of the New Jersey Statutes, or P.L. 2001, x414 (C.2C:35B -I
et seq.), or marijuana as defined in P.L. 1970, x226 (C.24:11 -1 or al), or hemp or hemp
product cultivated, handled, processed, transported, or sold pursuant to the "New Jersey
Hemp Farming Act ", P.L. 2019, c.238 (C.4:28 -6 et al).
"Cannabis cultivator" means any licensed person or entity that grows, cultivates, or
produces cadnabis in this State, and may sell this cannabis to other cannabis cultivators,
cannabis Manufacturing, cannabis wholesalers, or cannabis retailers, but not to
consumers. This person or entity shall hold a Class I Cannabis Cultivator license or
combined Cannabis Cultivator & Manufacturing license. A cannabis cultivator may also
be referred to as a "cannabis cultivation facility".
"Cannabis items" means any usable cannabis, cannabis product, cannabis extract, and any
other cannabis resin. "Cannabis item" does not include: any form of medical cannabis
dispensed to registered qualifying patients pursuant to the "Jake Honig Compassionate
Use Medical Cannabis Act ", P.L. 2009, c.307 (C.24:61 -1 at al), and P.L. 2015, e.158
(C.18A:40 -12.22 et al); marijuana defined in NJSA 2C:35 -2 and applied to any offense
set forth in chapters 35, 35A and 36 of Title 2C of the New Jersey Statutes, or P.L. 2001,
c.414 (C.2C:35B -1 et seq.), or marijuana as defined in P.L. 1970, c.226 (C.24:11 -1 eta]),
or hemp or hemp product cultivated, handled, processed, transported, or sold pursuant to
the "New Jersey Hemp Fanning Act ", P.L. 2019, c.238 (C.4:28 -6 of al).
"Cannabis Manufacturing" means any licensed person or entity that processes cannabis
items in this State by purchasing cannabis manufacturing, preparing, and packaging
cannabis items, and selling these items to other cannabis Manufacturing, cannabis
wholesalers, or cannabis retailers, but not to consumers. This person or entity shall hold a
Class 2 Cannabis Manufacturing license or combined Cannabis Cultivator &
Manufacturing license. A cannabis Manufacturing may also be referred to as a "cannabis
product manufacturing facility".
"Cannabis retailer" means any licensed person or entity that purchases cannabis from
cannabis cultivators and cannabis items from cannabis Manufacturing or cannabis
wholesalers and sells these to consumers from a retail store. This person or entity shall
hold a Class 5 Cannabis Retailer license.
NO. #22 -8
"Cannabis wholesaler" means any licensed person or entity that sells cannabis items for
the purpose of release either to another cannabis wholesalers or to a cannabis retailer.
This person or entity shall hold a Class 3 Cannabis wholesaler license.
"Transfer tax" means a tax imposed on receipts from the sale of cannabis and cannabis
items from one cannabis establishment to another cannabis establishment; receipts from
the retail sales by a cannabis retailer to retail customers who are 21 years of age or older,
or any combination thereof.
"User tax" means a tax imposed at the transfer tax rates, on any concurrent license
holder, as permitted by the chapter 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 Chapter 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. -
SECTION III
The Second Section of said Chapter, entitled "Taxation Bates" shall include the following:.
Tire rates for taxation for cannabis and cannabis products and activities shall be:
A. Cannabis cultivators shall be taxed at two (2 %) percent of the receipts from each sale.
B. Cannabis Manufacturing shall be taxed at two (2 %) percent of the receipts from cacti
sale.
C. Cannabis wholesalers shall be taxed at one (I %) percent of the receipts from each
sale.
D. Cannabis retailers shall be taxed at two (2 %) percent of the receipts from each sale.
E. A user tax is hereby also established at two (2 %) percent 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 on the license holder's establishment that is located in the
Borough to any other license holder's establishments, whether located in the Borough
or another municipality.
F. The transfer tax or user tax imposed by the ordinance shall be in addition to any 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. 54:22B -1 et seq). The transfer tax or
user tax will be assessed and collected pursuant to the established State law and
Administrative rules and regulations regarding same.
SECTION IV
The Third Section of said Chapter, entitled "Other Regulations." Shall include the following:
A. The transfer tax or user tax imposed pursuant to this Chapter shall be in addition to
any other tax imposed by law.
B. The transfer tax or user tax shall be collected or paid and remitted to the Borough by
the cannabis establishment from the cannabis establishment purchasing or receiving
the cannabis item, or from the customer at the point of sale, on behalf of the Borough
by the cannabis establishment selling or transferring the cannabis item. The transfer
tax or user tax shall be stated, charged and shown separately on the on any sales slip,
invoice, receipt, or other statement or memorandum of the price paid or payable for
the cannabis or cannabis item.
C. Every cannabis establishment required to collect a transfer tax or user tae pursuant to
this Chapter shall be personally liable for the transfer tax or user tax imposed,
collected, or required to be collected under this Chapter. Any cannabis establishment
shall have the same right with respect to collecting the transfer tax or user tax from
another cannabis establishment or the customer as if the transfer tax or user tax was
part of the sale and payable at the same time, or with respect to non- payment of the
transfer tax or user tax by the cannabis establishment or customer, as if the transfer
tax or user tax was a pat of the purchase price of the cannabis or cannabis item and
NO. #22 -8
PAGE 3
payable at the same time; provided, however, that the chief financial officer of the
municipality which imposes the transfer or user tax shall be joined as a party in any
action or proceeding brought to collect the transfer tax or user tax.
D. No cannabis establishment required to collect a transfer tax or user tax imposed
Pursuant to this Chapter 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 customer or
that the transfer tax or user tax will be refunded to the cannabis establishment or the
customer.
E. All revenues collected from a transfer tax or user tax imposed pursuant to this
Chapter shall be remitted to the chief financial officer of the Borough in a manner
prescribed by the local governmental entity. The chief financial officer shall collect
and administer any transfer tax or user tax imposed pursuant to this Chapter. The
Borough shall enforce the payment of delinquent taxes or transfer fees imposed
pursuant to this Chapter in the same manner as provided for municipal real property
taxes.
F. In the event that the transfer tax or user tax imposed pursuant to the Chapter is not
paid as and when due by a cannabis establishment, the unpaid balance, and any
interest aceming thereon, shall be a lien on the parcel of real property comprising the
cannabis establishment in the same manner as all other unpaid taxes, fees, or other
charges. The lien shall be superior and paramount to the interest in the parcel of any
owner, lease, 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 die parcel for
unpaid property taxes due and owing in the same year.
RECORD OF COUNCIL VOTE
COUNCILMAN
YBS
NO
NV
A.B.
COUNCILMAN
YES
NO
NY
A.B.
BELLING
X
JOHAL
X
X
IMASCIO
X
NAPLES
X
rDIAZ
X- Indicate Vote AB- Absent NV -Not Voting XOR- Indicates Vole to Overrule Veto
pted on first reading of the Council of the Borough of Carteret, N.J., on March 241 2022
pted on second reading after hearing on April 211 2022
APPROVED I
' MAYO
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AFFIDAVIT OF PUBLICATION
The following is a true copy of an Ordinance or Resolution of
the Borough of Carteret that has appeared in the Home News
Tribune, a newspaper which is printed in Freehold, New
Jersey and published in Neptune, in said County and State and
of general circulation in said county. One 1 time(s), once in
each issue as follows:
April 12, 2022
Notary Public of New Jersey
DANAARCHEVAL
NOTARY, PUBLIC OF NEW JERSEY
My Corhmisslon Expires Jan. 12, 2027
Sworn and subscribed before
me this L day of 4L,, i �o 2 ,;�
Carmnela Poior'zelsi i, RMt
Municipal Clerk
:ORDINANCE #22.8
ice amends the Borough Code With regard.
AFFIDAVIT OF PUBLICATION
The following is a true copy of an Ordinance or Resolution of
the Borough of Carteret that has appeared in the Home News
Tribune, a newspaper which is printed in Freehold, New
Jersey and published in Neptune, in said County and State and
of general circulation in said county. One 1 time(s), once in
each issue as follows:
April 27, 2022
of New Jersey
1QMyJENNIFER K. OTE 0
No tary Pu611c • State of New Jersey
Commission N 80.18.8983 Comm. Expires Mar. 31 2027
Sworn and vbscribed before
me this �day of JWAL 0 4
Cartnela Pog rzel IRMO
Municipal Clerk
ORDINANCE #22 -8
"AMENDING AND SUPPLEM EOf THE BOROUGH
FEES- ENTING THE COD
OF CARTERET TO qOD A NEW CHAPTER REGARDING
- CANNABIS
APPROVED AND ADOPTED.
INTRODUCED:
APRIL 21, 2022
Advertlsed as Adopted on Flrst Reading
with notice Puhl11 Hearing•
MARCH 24, 2022
Hearing Held:
d:
APRIL 12; 2022
12
Approved By:
Adva"Iwd as Finally Adopted:
APRIL 2022
MAYOR DANIEL J. REIMAN
APRIL 27, .2022
Carmela PogoYZelskl, RMC
Munidpal Clerk