75A - PH - CANNABIS UPDATE - Laserfiche WebLink

Home Browse Search

Ordinance Amendment No. 2019-01 — Commercial Cannabis Ordinance Updates July 16, 2019 Page 3 Table 1: Proposed Financial Amendments Item Impact • Reduces the net negative effect of multi -level taxation. Security Deposits (SAMC Amendment: Section 21-80, 21-80.1, 21- 86, and 21-136) Amends Ordinance NS-2962 to allow a single security deposit to cover multiple types of vertically/ horizontally integrated commercial cannabis business activities conducted by the same ownership regardless of form of business structure. Impacts: • Reduces overall security deposit requirement to a maximum amount of $10,000. • Allows two or more vertically/horizontally integrated cannabis businesses to be covered by a single deposit. • Implements well-defined processes for handling deposits, their application, replenishment, and release as well as requirements for close-out audits and other guards against loss of taxes due to transfer of ownership or termination of business. Alternate Square Footage Amendment: Tax (SAMC Section 21-133) Amends Ordinance NS-2962 to allow certain vertically and/or horizontally integrated commercial cannabis businesses to base their alternate square footage tax calculations on measured allocated gross square feet rather than total gross square feet. Impact: • Allows distribution and manufacturing cannabis businesses that are vertically or horizontally integrated to report actual allocated square footage utilized upon verification by the City in place total square footage of premises. Testing Laboratories Amendment: Reduce Tax Rate from 5 to 2 Percent Amends Ordinance NS-2962 to reduce the gross receipts tax rate on testing laboratories and testing facilities. Impact: • Allows the City to maintain its competitive position with regards to cannabis testing which is the most mobile and easily re -locatable class of commercial cannabis business. 75A-3