Agenda Packet_2022-10-04 - Laserfiche WebLink

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Ordinance Second Reading - Commercial Cannabis Amendments October 4, 2022 Page 3 Retail Actual Impact of 1 % tax rate Impact of 1 % tax rate Type Revenue decrease decrease FY21-22 FY22-23 6 months FY23-24 12 months Medicinal $843,780 $70,315 $140,630 Adult- $20,438,677 $1,277,417 $2,554,835 Use Total $1,347,732 $2,695,465 The City Council also amended the proposed Ordinance to offer a further two -percent (2%) tax rate decrease for Qualified Social Equity Commercial Cannabis Retail Business Operators as defined and regulated by Santa Ana Municipal Code Section 40-16. If assumed that half of the adult -use cannabis retail businesses in the City will comply with the social equity practices, then the potential impact of the two -percent (2%) decrease follows: Retail Actual Impact of 2% tax rate Impact of 2% tax rate Type Revenue decrease decrease FY21-22 50% participation 50% participation FY22-23 6 months FY23-24 12 months Adult- $20,438,677 $1,277,417 $2,554,835 Use If all of adult -use cannabis retail businesses attain Qualified Social Equity Commercial Adult Use Cannabis Retailer Operator status and comply with social equity practices, then the potential impact of the decrease grows. Retail Actual Impact of 2% tax rate Impact of 2% tax rate Type Revenue decrease decrease FY21-22 100% participation 100% participation FY22-23 (6 months) FY23-24 (12 months) Adult- $20,438,677 $2,554,835 $5,109,670 Use These estimates do not factor -in potential tax base increases due to lounges and event activity, for which the City has no data. In addition, regulatory process requirements may result in the passing of time before lounges are open for business. A summary of the combined estimated fiscal impact is as follows. City Council 22 — 3 10/4/2022