Cranford enacts a cannabis transfer tax and user tax for local cannabis sales.

PUBLIC NOTICETOWNSHIP OF CRANFORDCRANFORD, NEW JERSEYORDINANCE NO. 2026-02AN ORDINANCE TO AMEND THE CODE OF THE TOWNSHIP OF CRANFORD, CHAPTER 379, TO ESTABLISH A CANNABIS TRANSFER TAX AND CANNABIS USER TAXWHEREAS, the New Jersey Cannabis Regulatory, Enforcement Assistance, and Marketplace Modernization Act (“CREAMMA”), N.J.S.A. 24:6I-31 et seq., allows municipalities to enact by ordinance a method by which the local government may collect the local cannabis tax and to whom the local holder of any authorized cannabis license is to pay said tax; andWHEREAS, the Township of Cranford has “opted out” of all types of cannabis licensing under CREAMMA; and WHEREAS, the New Jersey Legislature has permitted certain plenary license holders (i.e., liquor distributors) to sell intoxicating hemp products notwithstanding the “opt out” by a municipality, and expressly subjected the sale of these beverages to the optional Local Cannabis Transfer Tax; and WHEREAS, the Township Committee of the Township of Cranford finds that it is the best interest of the Township to enact a Local Cannabis Transfer Tax.NOW, THEREFORE, BE IT ORDAINED, by the Township Committee of the Township of Cranford, that the following amendments and revisions are made to the Revised General Ordinances of the Township of Cranford, Chapter 379 entitled “Taxation.” SECTION 1. Chapter 379 of the Code of the Township of Cranford, entitled “Taxation and Revenue” is hereby amended by adding new Article IV, entitled “Cannabis Transfer Tax,” as follows:§ 379-21. Purpose. It is the purpose of this article to implement the provisions of N.J.S.A. 24:6I-31 et seq., and N.J.S.A. 24:6I-48.2, which authorize the governing body of a municipality to adopt an ordinance imposing a tax at a uniform percentage rate not to exceed 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, 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 cannabis establishment. § 379-22. Definitions. Unless otherwise defined herein, as used herein, the Township adopts by reference the terms and definitions established by N.J.S.A. 24:6I-33. § 379-23. Tax established. A. There is hereby established a local cannabis transfer tax in the Township of Cranford which shall be fixed at a uniform percentage 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; 2% of the receipts from each sale by an alternative treatment center (or medical cannabis establishment); and 2% of the receipts from each sale by a cannabis retailer for every occupancy of a cannabis establishment in the Township of Cranford. B. In addition to the tax established in Subsection A of this section, a user tax, at the equivalent transfer tax rates, is hereby established 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 Subsection A of this section, from the license holder’s establishment that is located in the Township of Cranford to any of the other license holder’s establishments, whether located in this Township or another municipality. C. 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, P.L. 1966, c. 30 (N.J.S.A. 54:32B-1 et seq.). § 379-24. Tax in addition to other taxes or fees. The cannabis transfer 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 property or cannabis establishment. § 379-25. Collection. A. The transfer tax or user tax imposed by this article shall be collected or paid, and remitted to the Township of Cranford by the cannabis establishment from the cannabis establishment purchasing or receiving the cannabis or cannabis item, or from the consumer at the point of sale, on behalf of the Township by the cannabis retailer selling the cannabis item to that consumer. The transfer tax or 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. B. Every cannabis establishment required to collect a transfer tax or user tax imposed by ordinance pursuant to this article shall be personally liable for the transfer tax or user tax imposed, collected, or required to be collected under this article. Any cannabis establishment shall have the same right with respect to collecting the transfer tax or user tax from another cannabis establishment or the consumer as if the transfer tax or user tax was a part of the sale and payable at the same time, or with respect to nonpayment of the transfer tax or user tax by the cannabis establishment or consumer, as if the transfer tax or 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 Township shall be joined as a party in any action or proceeding brought to collect the transfer tax or user tax. C. No cannabis establishment required to collect a transfer tax or user tax imposed by this article 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 consumer, or that the transfer tax or user tax will be refunded to the cannabis establishment or the consumer. D. All revenues collected from a transfer tax or user tax imposed by ordinance pursuant to this article shall be remitted to the Township’s Chief Financial Officer on a quarterly basis payable for the prior three months’ activities and due at the same time as quarterly dates for the collection of property taxes. The revenues due on February 1 of each year shall include all transfer taxes or user taxes collected for the prior year months of October, November and December. The revenues due on May 1 of each year shall include all transfer taxes and user taxes collected for the immediate prior months of January, February and March. The revenues due on August 1 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 November 1 of each year shall include all transfer taxes and user taxes collected for the immediate prior months of July, August and September. § 379-26. Payment; vendor violations and penalties. A. The Chief Financial Officer shall collect and administer any transfer tax or user tax imposed to this article. B. The municipality shall enforce the payment of delinquent taxes or transfer fees imposed pursuant to this article in the same manner as provided for municipal real property taxes. C. 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 on the parcel for unpaid property taxes due and owing in the same year. D. The Township shall file in the office of its 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.SECTION 2. If any article, section, subsection, sentence, clause or phrase of this Ordinance is, for any reason, held to be unconstitutional or invalid, such decision shall not affect the remaining portions of this Ordinance and they shall remain in full force and effect.SECTION 3. In the event of any inconsistencies between the provisions of this Ordinance and any prior ordinance of the Township of Cranford, the provisions hereof shall be determined to govern.SECTION 4. This Ordinance shall take as required by law upon adoption and publication in accordance with the laws of the State of New Jersey.NOTICE OF PENDING ORDINANCEThe foregoing ordinance was introduced and approved on first reading at a meeting of the Township Committee of the Township of Cranford, New Jersey on Tuesday, February 3, 2026 and will be further considered for final passage after public hearing to be held at the Municipal Building, 8 Springfield Avenue, Cranford, New Jersey on Tuesday, March 10, 2026 at 7:30 p.m. or as soon thereafter as this matter can be reached. All persons interested will be given the opportunity to be heard concerning such ordinance. Copies of Ordinance No. 2026-02 are available, for no fee, in the office of the Township Clerk, Cranford Municipal Building, 8 Springfield Avenue, Cranford, New Jersey, 07016, during the hours of 8:30 a.m. and 4:30 p.m., Monday through Friday (email p-donahue@cranfordnj.org or call 908-709-7210.) A copy of Ordinance No. 2026-02 has been posted on the Bulletin Board upon which public notices are customarily posted in the Municipal Building of the Township.Patricia Donahue, RMCTownship Clerk1 T - 02/12/26, The Leader        			  	  Fee: $220.32