Item 25 - Ordinance Amendment No. 2022-01 - Commercial Cannabis Regulatory and Tax Updates

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Exhibit 5 - Cannabis Comparative Tax Information Page 1 of 6 City Tax Rates* Required Permits Consumption Allowed? Notes Maximum Cap & Active Retail vs Supply licenses Santa Ana – Existing Adult-Use Retail 8% or $25/sf Non-discretionary. Regulatory safety permit (RSP), plus building permits. No CEQA review required. No. Status quo. Retail: Cap 30, 27 active Supply: No Cap, 37 active Medicinal Retail 6% Cultivation 6% or $10/sf. Distribution 6% or $4/sf Manufacturing 6% or $10/sf Testing 1% or $1.50/sf Santa Ana – Proposed Adult-Use Retail 8% or $25/sf Non-discretionary. Regulatory safety permit (RSP), plus building permits. No CEQA review required. Allow all retail storefront dispensaries to have consumption lounges in separate, designated areas with air filtration. Indoor consumption, including smoking, permitted as per State. Outdoor open-air smoking prohibited. Up to 6 total temporary/special consumption events per year. Santa Ana would be only city between West Hollywood and National City (San Diego County) to allow consumption lounges. Reduces taxes on supply-side, slightly higher than other cities, but keeps streamlined and non- discretionary process in place. Retail: Cap 35 Supply: No change Medicinal Retail 6% Cultivation 4% or $7/sf Distribution 4% or $3/sf Manufacturing 4% or $7/sf Testing 1% or $1.50/sf Corona Adult-Use Retail 7% operational fee, up to 9% Discretionary. Competitive, merit-based application process Not stated Storefront retailers must be 1,000 feet from sensitive uses; non-storefront business types must be 600 feet from sensitive uses. Operational agreement required Retail: Cap 12, active 1 Supply: No cap, active 1 Medicinal Retail 7% operational fee, up to 9% Cultivation No Distribution 5% operational fee, up to 7% Manufacturing 5% operational fee, up to 7% Testing 2% operational fee, up to 3%