Keansburg council introduces cannabis licensing and 2% sales tax ordinances, schedules April hearing

The Borough of Keansburg introduced two companion ordinances on March 19 to regulate local cannabis businesses and to impose a local cannabis sales tax.

Ordinance #1741 would add a Cannabis Business Licenses chapter to the borough code. It defines licensing requirements consistent with N.J.S.A. 24:6I-31 et seq., assigns the governing body as the municipal issuing authority, requires applicants to obtain Keansburg Planning Board land-use approvals before applying, and sets an annual application fee of $5,000 for a Class 5 Cannabis Retailer. The ordinance creates a standing Cannabis Subcommittee comprised of two council members, the Keansburg Chief of Police and the Borough Manager to review submissions and recommend action to the full governing body. The measure also includes application confidentiality procedures, inspection and licensing conditions, an indemnification clause if the Borough becomes party to related litigation, and suspension and revocation procedures.

Ordinance #1742 would impose a two percent local sales tax on gross receipts from cannabis retail sales in Keansburg, authorize a user tax for transfers between business locations, and designate the Chief Financial Officer to administer collection and enforcement. The ordinance sets minimum fines for failure to collect or remit the tax and references enforcement under the borough’s general penalty provisions.

Both ordinances were introduced and scheduled for public hearing on Wednesday, April 16, 2025, at 7 p.m. The council recorded roll-call votes to introduce the measures. The ordinances state that the governing body is not required to issue the maximum number of licenses listed and that licensing remains at the council's discretion.