55D City's MMD Ordinance 6 17 14 FINAL - Revised Ordinance

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respect to retail sales whether imposed upon the retailer or the consumer and regardless of whether or not the amount of federal tax is stated to customers as a separate charge, or any California state, city or city and county sales or use tax required by law to be included in or added to the purchase price and collected from the consumer or purchaser, or such part of the sales price of any property previously sold and returned by the purchaser to the seller which is refunded by the seller by way of cash or credit allowances given or taken as part payment on any property so accepted for resale. "Gross receipts" shall be calculated without any deduction on account of any of the following: (i) The cost of tangible property sold or bartered; (ii) The cost of materials or products used, labor or service cost, interest paid, losses, or other expense; or (iii) The cost of transportation of the marijuana, or other property or product. (b) Business license tax rates for Marijuana Collectives/Cooperatives. (1) Every Collective/Cooperative, excepting a qualified “Nonprofit Organization”, whether it is organized or conducted as a "not for profit" business, a "non-profit" business, a “for-profit business,” shall pay a separate business license tax at a rate of up to ten percent (10%) of the gross receipts generated or otherwise received for each branch establishment or separate property location of the business. The gross receipts tax shall be initially set at a rate of five percent (5%). The maximum tax rate shall not exceed ten percent (10%) of gross receipts. This tax shall not be adjusted for inflation pursuant to Section 21-121 of This Chapter. (2) Notwithstanding the maximum tax rate of ten percent (10%) of gross receipts imposed under subsection (b)(1), the City Council may in its discretion at any time by ordinance implement a lower gross receipts tax rate for all Marijuana Collectives/Cooperatives, as defined in such ordinance, subject to the maximum rate of ten percent (10%) of gross receipts. The City Council may by ordinance increase any such gross receipts tax rate from time to time, not to exceed the maximum gross receipts tax rate established under subsection (b)(1). (3) As part of the gross receipts tax imposed by this article, each Collective/Cooperative shall pay a minimum basic rate of two thousand dollars annually for each separate branch location or separate property location of the business. (c) Modification, Repeal or Amendment. The City Council may repeal the ordinance codified in this article, or amend it in a manner which does not result in an increase in the tax or taxes imposed herein, without further voter approval. The City Council may likewise by ordinance adopt and add 13