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2022-078 - Adding Commercial Cannabis Business Activity Tax Rate
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2022-078 - Adding Commercial Cannabis Business Activity Tax Rate
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10/6/2022 3:28:52 PM
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10/6/2022 3:28:16 PM
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City Clerk
Doc Type
Resolution
Agency
Clerk of the Council
Doc #
2022-078
Item #
22
Date
10/4/2022
Destruction Year
P
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Manufacturing <br />(effective December 21, 2018 <br />6% <br />$ 10.00 <br />through December 31, 2022) <br />Manufacturing <br />1% <br />$ 3.00 <br />(effective beginning January 1, 2023) <br />Shared Manufacturing <br />1% <br />$ 0.00 <br />(effective beginning January 1, 2023) <br />Testing Facility or Testing Laboratory <br />(effective December 21, 2018 <br />5% <br />$ 1.50 <br />through June 30, 2019) <br />Testing Facility or Testing Laboratory <br />1% <br />$ 1.50 <br />(effective July 1, 2019) <br />L. Section 21-133(b)(2) of Article XIII of Chapter 21 of the Santa Ana Municipal <br />Code allows the City Council by resolution to implement any lower commercial cannabis <br />tax rate it deems appropriate. <br />Section 2. The City Council hereby establishes: (1) the adult -use cannabis retail <br />business (including delivery, but not including consumption lounge and temporary <br />consumption and/or special events) gross receipts tax rate at seven (7%) percent, <br />lowering it from eight (8%) percent; (2) the adult -use cannabis retail business (including <br />delivery and consumption lounge) and the adult -use cannabis retail business (temporary <br />consumption and/or special events) gross receipts tax rates at seven (7%) percent; and <br />(3) the qualified social equity adult -use cannabis retail business (including delivery and <br />consumption lounge) and the qualified social equity adult -use cannabis retail business <br />(temporary consumption and/or special events) gross receipts tax rates at five (5%) <br />percent. The reduced seven (7%) percent gross receipts tax rate for adult -use cannabis <br />retail business (including delivery, but not including consumption lounge and temporary <br />consumption and/or special events), and the (7%) percent gross receipts tax rates for <br />adult -use cannabis retail business (including delivery and consumption lounge) and adult - <br />use cannabis retail business (temporary consumption and/or special events), plus the five <br />(5%) percent qualified social equity adult -use cannabis retail business (including delivery <br />and consumption lounge) and qualified social equity adult -use cannabis retail business <br />(temporary consumption and/or special events) activities shall all become effective <br />January 1, 2023. <br />Section 3. The City Council hereby establishes: (1) the square footage tax rates <br />for adult -use cannabis retail business (including delivery, but not including consumption <br />lounge and temporary consumption and/or special events), plus adult -use cannabis retail <br />business (including delivery and consumption lounge), together with qualified social equity <br />adult -use cannabis retail business (including delivery and consumption lounge) business <br />activities at twenty-five ($25) dollars per square foot; (2) the square footage tax rates for <br />Resolution No. 2022-078 <br />Page 4 of 6 <br />
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