Item 22 - Ordinance Second Reading - Commercial Cannabis Amendments

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Ordinance No. NS-XXX Page 54 of 68 effective January 1, 2018, pursuant to subsection (b)(3) [(Ordinance No. NS-2930, Section 8, adopted 11-21-17)], shall be decreased to a rate of five (5) percent effective January 1, 2023, pursuant to subsection (b)(4) [(Ordinance No. NS-XXXX, Section 8, adopted XX-XX-XX)]. (m) Notwithstanding the tax rates imposed herein under subsection (l), the City Council may, in its discretion, at any time by resolution, implement any lower or higher tax rate it deems appropriate, not to exceed the maximum rate established by subsections (b)(2). Section 9. Section 21-133 of Article XIII of Chapter 21 of the Santa Ana Municipal Code is hereby amended to read in full as follows: Sec. 21-133. Commercial cannabis businesses—Annual business license tax assessment. Every person engaged in a “commercial cannabis business” or “commercial cannabis activity” shall pay an annual business license tax as outlined below. This Article shall not apply, except with respect to medical marijuana cooperatives/collectives (also referred to as medicinal commercial cannabis medicinal retail businesses) which are vertically and/or horizontally integrated with commercial cannabis businesses, to medical marijuana cooperatives/collectives which are governed by Article XII of this Chapter, or to personal cultivation as defined in section 40-101(b) of this Code. (a) For each branch establishment or separate property location of a commercial cannabis business transacted and carried on in the city, and for each separate type of commercial cannabis business conducted at the same location, the higher of the two (2) following tax rates shall be due to the City for each monthly reporting period: (1) Up to ten percent (10%) of each dollar of gross receipts received or generated for each monthly reporting period. (2) Up to $35.00 per square foot (annual tax rate) prorated monthly to one- twelfth (1/12th) of the annual tax rate amount. (b) These tax rates shall not be adjusted for inflation pursuant to section 21-121 of this Chapter. (c) Notwithstanding the tax rates imposed herein under subsection (a), the City Council may, in its discretion, at any time by resolution, implement any lower tax rate it deems appropriate, and may by resolution increase such tax rate from time to time, not to exceed the maximum rates established by subsection (a). (d) As of the operative date of this Article, the business license gross receipts tax rates and square footage tax rates application to specific commercial cannabis business activities have been established by city ordinance [(Ordinance No. NS-2962,