Item 35 - Ordinance Amendment No. 2022-01 - Commercial Cannabis Regulatory and Tax Updates

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Ordinance No. NS-XXX Page 71 of 73 of this Chapter for each and every day that such commercial cannabis activity is so carried on. (q) Classification of business license assessment type—Term and renewal. The business license issued to commercial cannabis businesses shall be classed as a gross receipts assessment type, issued for the same term of license as set forth in subsection 21-71(c) of this Chapter and shall be subject to renewal in accordance with sections 21-72(c), 21-73(c), and 21-77. (r) Operative date. Upon the approval by the majority of the voters of the city at the November 6, 2018 general election, the taxes imposed by this Article shall become operative and shall be applied by the collector upon all commercial cannabis businesses. (s) Operative date of decreased gross receipts tax rate. The gross receipts tax set initially at a rate of five (5%) percent for testing facilities or testing laboratories pursuant to subsection (d) above shall be decreased to a rate of one (1%) percent by resolution of the City Council [Santa Ana City Council Resolution No, 2019-068 as hereinabove provided for in accordance with subsection (c), which reduced rate, under the terms of said City Council resolution, shall become retroactively effective July 1, 2019. (t) Operative date of decreased gross receipts tax rate. The gross receipts tax set initially at a rate of six (6%) percent for cultivation, manufacturing, and distribution pursuant to subsection (d) above shall be decreased to a rate of four (4%) percent by resolution of the City Council [Santa Ana City Council Resolution No, 2022-XXX] as hereinabove provided for in accordance with subsection (c), which reduced rate, under the terms of said City Council resolution, shall become effective July 1, 2022. (u) Operative date of decreased square footage tax rate. The square footage tax set initially at a rate of ten ($10) dollars per square foot for cultivation and manufacturing, and four ($4) dollars per square foot for distribution pursuant to subsection (d) above shall be decreased to a rate of seven (7%) dollars per square foot for cultivation and manufacturing, and to a rate of two ($2) dollars per square foot for distribution, and to a rate of zero ($0) dollars per square foot for shared manufacturing by resolution of the City Council [Santa Ana City Council Resolution No, 2022-XXX] as hereinabove provided for in accordance with subsection (c), which reduced rates, under the terms of said City Council resolution, shall become effective July 1, 2022. Section 10. Section 21-135 of Article XIII of Chapter 21 of the Santa Ana Municipal Code is hereby amended to read in full as follows: Sec. 21-135. - Single property location; multiple state licenses; separate city business licenses. Exhibit 1