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RESOLUTION NO.2022-079 <br />A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF <br />SANTA ANA REDUCING THE TAX ON MEDICINAL RETAIL <br />MARIJUANA BY ONE PERCENT, FROM SIX (6%) PERCENT <br />TO FIVE (5%) PERCENT <br />BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SANTA ANA AS <br />FOLLOWS: <br />Section 1. The City Council of the City of Santa Ana hereby finds, determines and <br />declares as follows: <br />A. On November 4, 2014, Santa Ana voters approved Santa Ana's Medical Marijuana <br />Regulatory Program ordinance ("Measure BB") allowing up to twenty (20) medical marijuana <br />retail cannabis collectives/cooperatives ("dispensaries"). <br />B. Following the adoption of Measure BB, the provisions of the measure were <br />codified in Chapters 18 and 21 of the Santa Ana Municipal Code. The City also established <br />an implementation plan, enforcement program, administrative policies, and best practices. <br />C. In May 2016 and early 2017, following initial implementation of the ordinance, the <br />City held roundtable discussions that invited stakeholders, dispensary owners, and <br />members of the medical marijuana industry to meet with City staff regarding the <br />implementation of Measure BB. Participants of the roundtable discussions voiced opinions <br />on various aspects of the regulatory and tax programs and provided their recommendations <br />for future policy level consideration. <br />D. On June 20, 2017, the City Council approved amendments to Chapter 18 to <br />streamline Measure BB and create more business -friendly conditions for the existing <br />collectives/cooperatives. <br />E. On November 17, 2017, the City Council approved an ordinance amending <br />Chapter 21, Article XII (Marijuana Collectives/Cooperatives) and increasing the tax on <br />medicinal retail marijuana dispensaries. Measure BB established an initial business license <br />tax rate of up to five (5%) percent of the medicinal retail marijuana gross receipts generated <br />from each dispensary, but authorized a maximum business license tax rate of up to ten <br />(10%) percent. The November 17, 2017, ordinance (NS-2930) increased the tax from the <br />initial Measure BB voter approved rate of five percent (5%) to six percent (6%) as permitted <br />by Measure BB. <br />F. Section 21-127 (b) of Article XII of Chapter 21 of the Santa Ana Municipal Code <br />allows the City Council by resolution to implement any lower or higher tax rate it deems <br />Resolution No. 2022-079 <br />Page 1 of 3 <br />