HomeMy WebLinkAbout2022-079 - Reducing the Tax on Medicinal Retail Marijuana by One PercentRESOLUTION NO.2022-079
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
SANTA ANA REDUCING THE TAX ON MEDICINAL RETAIL
MARIJUANA BY ONE PERCENT, FROM SIX (6%) PERCENT
TO FIVE (5%) PERCENT
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SANTA ANA AS
FOLLOWS:
Section 1. The City Council of the City of Santa Ana hereby finds, determines and
declares as follows:
A. On November 4, 2014, Santa Ana voters approved Santa Ana's Medical Marijuana
Regulatory Program ordinance ("Measure BB") allowing up to twenty (20) medical marijuana
retail cannabis collectives/cooperatives ("dispensaries").
B. Following the adoption of Measure BB, the provisions of the measure were
codified in Chapters 18 and 21 of the Santa Ana Municipal Code. The City also established
an implementation plan, enforcement program, administrative policies, and best practices.
C. In May 2016 and early 2017, following initial implementation of the ordinance, the
City held roundtable discussions that invited stakeholders, dispensary owners, and
members of the medical marijuana industry to meet with City staff regarding the
implementation of Measure BB. Participants of the roundtable discussions voiced opinions
on various aspects of the regulatory and tax programs and provided their recommendations
for future policy level consideration.
D. On June 20, 2017, the City Council approved amendments to Chapter 18 to
streamline Measure BB and create more business -friendly conditions for the existing
collectives/cooperatives.
E. On November 17, 2017, the City Council approved an ordinance amending
Chapter 21, Article XII (Marijuana Collectives/Cooperatives) and increasing the tax on
medicinal retail marijuana dispensaries. Measure BB established an initial business license
tax rate of up to five (5%) percent of the medicinal retail marijuana gross receipts generated
from each dispensary, but authorized a maximum business license tax rate of up to ten
(10%) percent. The November 17, 2017, ordinance (NS-2930) increased the tax from the
initial Measure BB voter approved rate of five percent (5%) to six percent (6%) as permitted
by Measure BB.
F. Section 21-127 (b) of Article XII of Chapter 21 of the Santa Ana Municipal Code
allows the City Council by resolution to implement any lower or higher tax rate it deems
Resolution No. 2022-079
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appropriate not greater than the business license tax rate of up to ten (10%) percent
authorized by Measure BB.
Section 2. The City Council hereby establishes the marijuana
collectives/cooperatives gross receipts tax rate at five (5) percent, lowering it from six (6)
percent. The five (5%) percent gross receipts tax rate shall become effective January 1,
2023.
Section 3. This Resolution, upon its adoption by the City Council, shall take effect
January 1, 2023, and the Clerk of the Council shall attest to and certify the vote adopting
this Resolution.
ADOPTED this 4th day of October, 2022.
Vicente Sarmiento
Mayor
APPROVED AS TO FORM:
Sonia R. Carvalho, City Attorney
By: Ili,
Jo M. Funk
Chief Assistant City Attorney
AYES: Councilmembers Hernandez Lopez Mendoza Penaloza,
Phan Bacerra Sarmiento (7)
NOES: Councilmembers None (0)
ABSTAIN: Councilmembers None (0)
NOT PRESENT: Councilmembers None (0)
Resolution No. 2022-079
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CERTIFICATE OF ATTESTATION AND ORIGINALITY
I, Clerk of the Council, do hereby attest to and certify the attached Resolution No. 2022-
079 to be the original Resolution adopted by the City Council of the City of Santa Ana on
October 4, 2022.
Date: 10.1 (a' 207-Z � . 6
Cr Clerk of the CouncilO
City of Santa Ana
Resolution No. 2022-079
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