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55D - RESO COMMERCIAL CANNABIS LICENSE TAX
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55D - RESO COMMERCIAL CANNABIS LICENSE TAX
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Last modified
6/28/2018 6:37:00 PM
Creation date
6/28/2018 6:35:46 PM
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City Clerk
Doc Type
Agenda Packet
Agency
City Manager's Office
Item #
55D
Date
7/3/2018
Destruction Year
2023
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(d) As of the operative date of this article, the business license gross receipts tax rates <br />and square footage tax rates application to specific commercial cannabis business <br />activities shall be established as follows: <br />Commercial Cannabis Business <br />Gross Receipts <br />Gross Square <br />Activity <br />Tax Rate <br />Footage Tax Rate <br />Adult -use Cannabis Retail <br />8% <br />$ 25.00 <br />Business (including Delivery) <br />Cultivation <br />6% <br />$ 10.00 <br />Distribution <br />6% <br />$ 4.00 <br />Manufacturing <br />6% <br />$ 10.00 <br />Testing Facility or Testing <br />5% <br />$ 1.50 <br />Laboratory <br />Commercial cannabis businesses not having a fixed place of business within the city <br />but conducting regular, non -incidental commercial cannabis business activities <br />within the city shall be subject to the gross receipts tax rate(s) as set out in the table <br />above based on the category/categories of commercial cannabis activity conducted. <br />However, such out-of-town commercial cannabis businesses shall not be subject to <br />any gross square footage tax rate(s). <br />(e) As part of the annual gross receipts/square footage tax(es) imposed by this article, <br />each commercial cannabis business located within the city shall pay a minimum <br />basic rate of two thousand dollars ($2,000.00) annually for each branch <br />establishment or separate property location of the commercial cannabis business <br />transacted and carried on in the city, and for each separate type of commercial <br />cannabis business conducted at the same location. Commercial cannabis <br />businesses having no fixed place of business within the city shall be exempted from <br />this requirement. <br />(f) In the event the city should in the future permit additional categories of commercial <br />cannabis business activity, as may from time to time be licensed by the State of <br />California, such categories of commercial cannabis activates shall be subject to the <br />same maximum tax rates as imposed herein. The city may by ordinance of the city <br />council initially set the required gross receipts/gross square footage tax rates based <br />on category of cannabis business activity at lesser rates as may be deemed <br />appropriate by the city council. <br />`a <br />55D-18 <br />
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