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Commercial Cannabis Business <br />Activity <br />Gross Receipts <br />Tax Rate <br />Gross Square <br />Footage Tax Rate <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 />Laboratory <br />5% <br />$ 1.50 <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 activities 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 />(g) For purposes of this article, a commercial cannabis business is not considered to be <br />a business or person having a "specified exemption" or "specified exclusion" from <br />business license taxation as set forth in sections 21-48 and 21-49 of this chapter. <br />(h) For purposes of this article any person claiming an exemption from the gross <br />receipts tax rate component of the combined gross receipts/square footage tax <br />imposed under this article on the basis of a claim of being a qualified "nonprofit <br />organization" shall have the burden of substantiating their claim to the same extent <br />and in the same manner as a marijuana collective/cooperative in accordance with <br />section 21-127(a)(6) of this chapter. <br />(i) Cannabis businesses shall not pass the taxes imposed by this article through to an <br />adult -use cannabis retail business customer or commercial cannabis business <br />Ordinance No. NS -2962 <br />Page 5 of 12 <br />