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EXHIBIT A-1 <br />ARTICLE XIII. COMMERCIAL CANNABIS BUSINESSES <br />Sec. 21-132. Purpose. <br />This article is required for the purpose of fixing the rate of taxation for commercial <br />cannabis businesses including delivery, distribution, manufacturing, cultivation, testing <br />and retail sales of cannabis and related products. This article does not apply to medical <br />marijuana collectives/cooperatives (also referred to as medicinal cannabis retail <br />businesses) which are subject to a business license tax under article XII of this chapter. <br />The taxes required to be paid under this article are declared to be required pursuant to <br />the taxing power of the City of Santa Ana solely for the purpose of obtaining revenue and <br />are not regulatory permit fees. <br />Sec. 21-133. Commercial cannabis businesses—Annual business license tax <br />assessment. <br />Every person engaged in a "commercial cannabis business" or "commercial <br />cannabis activity" shall pay an annual business license tax as outlined below. This article <br />shall not apply to medical marijuana cooperatives/collectives also referred to as medicinal <br />cannabis retail businesses which are governed by article XII of this chapter or to personal <br />cultivation as defined in section 18-611(n) of this code. <br />(a) For each branch establishment or separate property location of a commercial <br />cannabis business transacted and carried on in the city, and for each separate type <br />of commercial cannabis business conducted at the same location, the higher of the <br />two (2) following tax rates shall be due to the city for each monthly reporting period: <br />(1) . Up to ten percent (10%) of each dollar of gross receipts received or <br />generated for each monthly reporting period. <br />(2) Up to $35.00 per square foot (annual tax rate) prorated monthly to one - <br />twelfth (1/12th) of the annual tax rate amount. <br />(b) These tax rates shall not be adjusted for inflation pursuant to section 21-121 of this <br />chapter. <br />(c) Notwithstanding the tax rates imposed herein under subsection (a), the city council <br />may, in its discretion, at any time by resolution implement any lower tax rate it deems <br />appropriate, and may by resolution increase such tax rate from time to time, not to <br />exceed the maximum rates established by subsection (a). <br />(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 />Resolution 2018-049 <br />Page 8 of 16 <br />55A-52 <br />