Laserfiche WebLink
Ordinance Second Reading - Commercial Cannabis Amendments <br />October 4, 2022 <br />Page 3 <br />2 <br />9 <br />9 <br />1 <br />Retail <br />Type <br />Actual <br />Revenue <br />FY21-22 <br />Impact of 1% tax rate <br />decrease <br />FY22-23 (6 months) <br />Impact of 1% tax rate <br />decrease <br />FY23-24 (12 months) <br />Medicinal $843,780 $70,315 $140,630 <br />Adult- <br />Use <br />$20,438,677 $1,277,417 $2,554,835 <br />Total $1,347,732 $2,695,465 <br />The City Council also amended the proposed Ordinance to offer a further two-percent <br />(2%) tax rate decrease for Qualified Social Equity Commercial Cannabis Retail Business <br />Operators as defined and regulated by Santa Ana Municipal Code Section 40-16. If <br />assumed that half of the adult-use cannabis retail businesses in the City will comply with <br />the social equity practices, then the potential impact of the two-percent (2%) decrease <br />follows: <br />Retail <br />Type <br />Actual <br />Revenue <br />FY21-22 <br />Impact of 2% tax rate <br />decrease <br />50% participation <br />FY22-23 (6 months) <br />Impact of 2% tax rate <br />decrease <br />50% participation <br />FY23-24 (12 months) <br />Adult- <br />Use <br />$20,438,677 $1,277,417 $2,554,835 <br />If all of adult-use cannabis retail businesses attain Qualified Social Equity Commercial <br />Adult Use Cannabis Retailer Operator status and comply with social equity practices, then <br />the potential impact of the decrease grows. <br />Retail <br />Type <br />Actual <br />Revenue <br />FY21-22 <br />Impact of 2% tax rate <br />decrease <br />100% participation <br />FY22-23 (6 months) <br />Impact of 2% tax rate <br />decrease <br />100% participation <br />FY23-24 (12 months) <br />Adult- <br />Use <br />$20,438,677 $2,554,835 $5,109,670 <br />These estimates do not factor-in potential tax base increases due to lounges and event <br />activity, for which the City has no data. In addition, regulatory process requirements may <br />result in the passing of time before lounges are open for business. A summary of the <br />combined estimated fiscal impact is as follows.