HomeMy WebLinkAboutCC Reso 2016-35 RESOLUTION 2016- 35
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CATHEDRAL CITY ORDERING THE SUBMISSION TO THE
QUALIFIED ELECTORS OF THE CITY A MEASURE AMENDING
THE EXISTING VOTER-APPROVED TAX ON THE OPERATIONS OF
CANNABIS BUSINESSES, AT THE GENERAL MUNICIPAL
ELECTION TO BE HELD ON TUESDAY, NOVEMBER 8, 2016
WHEREAS, at the November 4, 2014 general municipal election the qualified
voters of the City of Cathedral City approved Measure N, which established a tax of
fifteen cents for every dollar, or fraction thereof, of proceeds received by a "cannabis
or marijuana collective and/or dispensary;" and
WHEREAS, at the time Measure N was approved dispensaries were the only
type of cannabis business that were permitted within the City; and
WHEREAS, subsequently, the City Council has adopted several ordinances
that have expanded the types of cannabis businesses permitted in the City to
include, without limitation, manufacturing and cultivation; and
WHEREAS, to ensure that all cannabis businesses located in the City are
taxed equitably and that vertically integrated cannabis businesses are not subject to
less taxation than non-vertically integrated cannabis businesses, the City desires to
amend the existing tax to exclude cultivation and manufacturing from the existing tax
of fifteen cents for every dollar of proceeds and instead impose a tax based on the
volume of cannabis and cannabis products cultivated and/or manufactured; and
WHEREAS, the Adult Use of Marijuana Act will be on the ballot at the
statewide general election to be held on Tuesday, November 8, 2016, and may
result in the legalization of recreational use of cannabis in California; and
WHEREAS, the City Council desires to apply its cannabis tax to businesses
that cater to recreational users as well as medicinal users; and
WHEREAS, the City Council desires to submit to the voters at the next
General Municipal Election scheduled for Tuesday, November 8, 2016 (the
"Election"), a measure amending and superseding the tax approved in Measure N;
and
WHEREAS, by previous resolution the City Council called the Election and
requested that the County of Riverside consolidate the Election with the statewide
general election to be held on the same date.
NOW, THEREFORE, the City Council of the City of Cathedral City
resolves:
Section 1. The City Council orders submitted to the voters a measure
amending the tax ordinance approved by the voters as Measure N at the November
4, 2014 general municipal election. The measure shall be designated by letter by the
Riverside County Elections Department. The question to appear on the ballot for
voter consider shall be as follows:
"To help fund municipal services, including police protection and crime
suppression services, fire prevention and suppression services, emergency
medical services, park, recreation, and library facilities and services, shall an
ordinance amending the existing cannabis tax be adopted that would expand
the tax to apply to recreational cannabis, if legalized, and apply a tax of $25
per square foot of cultivation space, and $1.00 for every gram of cannabis
concentrate and every unit of cannabis-infused product?"
Section 2. The complete text of the measure to be submitted to the voters for
approval is attached to this Resolution as Exhibit "A," and that the City Clerk shall
maintain a copy of the measure and shall make the same available for public
inspection upon request. The City Council hereby approves the ordinance attached
to this Resolution as Exhibit "A," the form thereof, and its submission to the voters of
the City at the June 7, 2016 election.
Section 3. The measure shall not take effect unless a majority of votes cast
on the measure at the Election are in favor of the measure.
Section 4. Arguments in favor or against the measure shall be filed with the
City Clerk of the City of Cathedral City on or before August 22, 2016, not to exceed
300 words, after which no arguments for or against the City measure may be
submitted to the City Clerk.
Section 5. Any member of the City Council is hereby authorized to prepare
a written argument in favor of or against the proposed ordinance, not to exceed
300 words.
Section 6. Rebuttal arguments shall be filed with the City Clerk by September
1, 2016, and shall not exceed 250 words in length.
Section 7. The City Clerk is hereby directed to transmit a copy of the measure
to the City Attorney, who shall prepare an impartial analysis of the measure showing
the effect of the measure on the existing law and the operation of the measure in
accordance with Section 9280 of the California Elections Code.
Section 8. The County Election Department is hereby authorized to canvass
the returns of the election, including this ballot measure.
Section 9. The Board of Supervisors of the County of Riverside is hereby
requested to issue instructions to the County Election Department to take any and all
steps necessary for the holding of the election and to consolidate this ballot measure
with any other applicable election conducted on the same day in the City. The Board
of Supervisors is further requested to order the County Clerk to set forth in the voter
information portion of all sample ballots to be mailed to the qualified electors of the
City the full text of the measure and to mail with the sample ballots to the electors
printed copies of the full text of the Ordinance, together with the arguments and
rebuttal arguments (if any) for and against the measure.
Section 10. The City of Cathedral City recognizes that costs will be incurred
by the County of Riverside in connection with the election and agrees to reimburse
the County for any such costs.
Section 11. The City Clerk is hereby directed to file a certified copy of this
Resolution with the Board of Supervisors and the Election Department of the County
of Riverside.
Section 12. This Resolution shall take effect upon its adoption.
Section 13. The City Clerk shall certify to the passage of this Resolution and
enter it into the book of original resolutions.
PASSED, APPROVED AND ADOPTED BY AT LEAST TWO-THIRDS OF THE
CITY COUNCIL THIS 13TH DAY OF JULY, 2016.
_ _ r
Stanley E. Henry, M or
Gary F ,Howell, City,clerk
APPROVED t o • -
i
Eric S. V=i, City Attorney
I, GARY F. HOWELL, CITY CLERK of the City of Cathedral City, do hereby certify
that the foregoing Resolution was introduced and adopted at a regular meeting of
the City Council held on the 13th day of July, 2016 by the following vote:
AYES: Council Members Kaplan, Carnevale and Aguilar; Mayor
Pro Tem Pettis and Mayor Henry
NOES: None
ABSENT: None
ABSTA None
Gary F,.Howell, City Clerk
EXHIBIT "A"
SEE NEXT PAGE
ORDINANCE NO.
AN ORDINANCE OF THE PEOPLE OF CATHEDRAL
CITY, CALIFORNIA, AMENDING CHAPTER 3.48 OF THE
CATHEDRAL CITY MUNICIPAL CODE MODIFIYING THE
EXISTING MEDICAL CANNABIS BUSINESS TAX TO
IMPOSE THE TAX ON ALL CANNABIS BUSINESSES
(MEDICAL AND NON-MEDICAL) AND TO PROVIDE
DIFFERENT TAX CALCULATIONS FOR CULTIVATING,
MANUFACTURING AND DISPENSING CANNABIS
THE PEOPLE OF THE CITY OF CATHEDRAL CITY ORDAIN:
SECTION 1. Chapter 3.48 of the Cathedral City Municipal Code is amended in
its entirety to read as follows:
"CHAPTER 3.48 CANNABIS TAX
3.48.005 Purpose and intent.
3.48.010 Imposition of tax.
3.48.020 Definitions.
3.48.030 Payment obligation.
3.48.040 City council authorization to adjust rates.
3.48.050 Payment of tax does not authorize activity.
3.48.060 Cannabis tax is not a sales tax.
3.48.070 Amendments and administration.
3.48.080 Returns and remittances.
3.48.090 Failure to pay tax.
3.48.100 Refunds.
3.48.110 Enforcement.
3.48.120 Debts—Deficiencies—Assessments.
3.48.005 Purpose and intent.
This chapter shall be known as the "Cannabis Tax" and is enacted as a business
license tax pursuant to Government Code section 37101 solely to raise revenue for the
general governmental purposes of the city and not for purposes of regulation or raising
revenues for regulatory purposes. All of the proceeds from the tax imposed by this
chapter shall be placed in the city's general fund and used for the usual current
expenses of the city.
This chapter is intended to impose a tax on lawful cannabis businesses operating
in the city, consistent with the city's authority in Government Code section 37101.
Cannabis businesses operating under California's medical marijuana laws (Health and
Safety Code sections 11362.7 – 11362.83; Business and Professions Code section
19300 - 19360) are subject to the tax imposed by this chapter. At such time as
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recreational or other non-medical use or consumption of cannabis is legalized or
decriminalized in California, this tax shall apply to cannabis businesses engaged in
commercial cannabis activity for non-medical uses.
3.48.010 Imposition of tax.
Every cannabis business operating in the city, regardless of whether such
cannabis business has a license pursuant to Chapter 5.88 of this code or a permit
pursuant to Chapter 9.108 of this code, shall pay a cannabis tax in the following
amounts:
A. Fifteen cents for each one dollar of gross receipts or fractional part thereof
received by a dispensary or by any other cannabis business for activities other than
cannabis cultivation or manufacturing.
B. Twenty-five dollars for each square foot or fractional part thereof of
cannabis cultivation space.
C. One dollar for each gram of cannabis concentrate produced or
manufactured.
D. One dollar for each unit of cannabis-infused product other than cannabis
concentrate produced or manufactured and packaged or intended for individual sale.
Beginning July 1, 2017 and each July 1 thereafter, the amounts in paragraphs B,
C, and D of this section shall be automatically adjusted based on the average
percentage change in the Consumer Price Index for "all urban consumers" in the Los
Angeles-Anaheim-Riverside area for the calendar year which ends in the previous fiscal
year.
3.48.020 Definitions.
For purposes of this chapter:
A. "Cannabis" means all parts of the plant Cannabis sativa Linnaeus,
Cannabis indica, or Cannabis ruderalis, whether growing or not; the seeds thereof; the
resin, whether crude or purified, extracted from any part of the plant; and every
compound, manufacture, salt, derivative, mixture, or preparation of the plant, its seeds,
or resin. "Cannabis" also means the separated resin, whether crude or purified,
obtained from marijuana. "Cannabis" also means marijuana as defined by Section
11018 of the Health and Safety Code as enacted by Chapter 1407 of the Statutes of
1972. "Cannabis" does not include the mature stalks of the plant, fiber produced from
the stalks, oil or cake made from the seeds of the plant, any other compound,
manufacture, salt, derivative, mixture, or preparation of the mature stalks (except the
resin extracted therefrom), fiber, oil, or cake, or the sterilized seed of the plant which is
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incapable of germination. For the purpose of this chapter, "cannabis" does not mean
"industrial hemp" as defined by Section 81000 of the Food and Agricultural Code or
Section 11018.5 of the Health and Safety Code.
B. "Cannabis business" means any person engaged in commercial cannabis
activity, including cultivation, possession, manufacture, processing, storing, laboratory
testing, labeling, transporting, distribution, or sale of cannabis or a product containing
cannabis.
C. "Cannabis concentrate" means cannabis that has undergone a process to
concentrate the cannabinoid active ingredient, thereby increasing the product's potency.
Types of cannabis concentrate include, but are not limited to, hash, butane hash oil,
CO2 oil, kief, dry sift, Rick Simpson oil, and rosin.
D. "Cannabis cultivation space" means the gross square footage of any
building, facility or site where cannabis cultivation and related activities occur. Cannabis
cultivation space includes, without limitation, areas used for growing, planting, seeding,
germinating, lighting, warming, cooling, aerating, fertilizing, watering, irrigating, tipping,
pinching, cropping, curing or drying cannabis, and areas used for storing products,
supplies or equipment related to any such activities. Cannabis cultivation space does
not include any part of a building, facility or site where cannabis cultivation and related
activities occurs that is used for cannabis business activities that are separately taxed
under this chapter.
E. "Cannabis-infused product" means a product infused with cannabis that is
intended for use or consumption other than by smoking, including but not limited to
edible products, oils, waxes, ointments, salves, tinctures, capsules, suppositories,
dermal patches, cartridges or other product containing cannabis concentrate or usable
cannabis that has been processed so that the dried leaves and flowers are integrated
into other material.
F. "Dispensary" means a facility where cannabis, cannabis concentrate,
cannabis extracts, and cannabis-infused products, or devices for the use of cannabis,
cannabis concentrate, cannabis extracts, and cannabis-infused products are offered,
either individually or in any combination, for retail sale, including an establishment that
delivers cannabis and cannabis products as part of a retail sale.
G. "Gross receipts" except as otherwise specifically provided, means the total
amount actually received or receivable from all sales; membership dues;
reimbursements; the total amount or compensation actually received or receivable for
the performance of any act or service, of whatever nature it may be, for which a charge
is made or credit allowed, whether or not such act or service is done as a part of or in
connection with the sale of cannabis and cannabis products; the monetary value of in-
kind contributions; discounts, rents, royalties, fees, commissions, dividends, and gains
realized from trading in stocks or bonds, however designated. Included in "gross
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receipts" shall be all receipts, cash, credits and property of any kind or nature, without
any deduction therefrom on account of the cost of the property sold, the cost of
materials used, labor or service costs, interest paid or payable, or losses or other
expenses whatsoever, except that the following shall be excluded there from: (1) cash
discounts allowed and taken on sales; (2) credit allowed on property accepted as part of
the purchase price and which property may later be sold, at which time the sales price
shall be included as gross receipts; (3) any tax required by law to be included in or
added to the purchase price and collected from the consumer or purchaser; (4) such
part of the sale price of any property returned by purchasers to the seller as refunded by
the seller by way of cash or credit allowances or return of refundable deposits
previously included in gross receipts; (5) receipts from investments where the holder of
the investment receives only interest and/or dividends, royalties, annuities and gains
from the sale or exchange of stock or securities, provided such items are directly
derived exclusively from the investment of capital and not from the sale of property
other than financial instruments, or from the provision of services, to any person; (6)
receipts derived from the occasional sale of used, obsolete or surplus trade fixtures,
machinery or other equipment used by the cannabis business in the regular course of
the cannabis business' business; (7) whenever there are included within the gross
receipts amounts which reflect sales for which credit is extended and such amount
proved uncollectible in a subsequent year, those amounts may be excluded from the
gross receipts in the year they prove to be uncollectible; provided, however, if the whole
or portion of such amounts excluded as uncollectible are subsequently collected, they
shall be included in the amount of gross receipts for the period when they are
recovered; (8) receipts of refundable deposits, except that such deposits when forfeited
and taken into income of the business shall not be excluded when in excess of one
dollar; (9) amounts collected for others where the business is acting as an agent or
trustee and to the extent that such amounts are paid to those for whom collected. These
agents or trustees must provide the finance department with the names and the
addresses of the others and the amounts paid to them. This exclusion shall not apply to
any fees, percentages, or other payments retained by the agent or trustees.
H. "Person" means an individual, firm, partnership, joint venture, association,
corporation, limited liability company, estate, trust, business trust, receiver, syndicate, or
any other group or combination acting as a unit and includes the plural as well as the
singular number.
3.48.030 Payment obligation.
All cannabis businesses subject to this chapter must pay the full tax imposed by
this chapter regardless of any rebate, exemption, incentive, or other reduction set forth
elsewhere in this code, except as enacted pursuant to Section 3.48.040 of this code or
as required by California or federal law. Failure to pay the tax shall be subject to
penalties, interest charges, and assessments as the city council may establish and the
city may use any or all other code compliance remedies provided in the Charter and this
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code. No provision in this code can lower the tax rate set forth in this section or
otherwise reduce the amount of taxes paid hereunder unless the provision specifically
states that the reduction applies.
3.48.040 City council authorization to adjust rates.
The city council may impose the tax authorized by this chapter at a lower rate
and, notwithstanding Section 3.48.030 of this code, may establish exemptions,
incentives, or other reductions, and penalties and interest charges or assessments for
failure to pay the tax in a timely manner, as otherwise allowed by the code and
California law. No action by the city council under this section shall prevent it from later
increasing the tax or removing any exemption, incentive, or reduction, and restoring the
maximum tax specified in this chapter.
3.48.050 Payment of tax does not authorize activity.
The payment of the tax required pursuant to this chapter shall not be construed
as authorizing the conduct or continuance of any illegal business or of a legal business
in an illegal manner. Nothing in this chapter shall be applied or construed as authorizing
the sale of cannabis by any illegal or unlawful business, or any business in violation of
any ordinance of the city.
3.48.060 Cannabis tax is not a sales tax.
The cannabis tax provided for under the provisions of this chapter is not a sales
or use tax and shall not be calculated or assessed as such. The cannabis tax shall not
be separately identified or otherwise specifically assessed or charged to any purchaser.
3.48.070 Amendments and administration.
A. Any amendment to Section 3.48.010 to increase the tax above the rate
expressly provided in such section shall not become effective until such amendment is
approved by the voters. The voters expressly authorize the city council to amend,
modify, change, or revise any other provision of this chapter as the city council deems in
the best interest of the city.
B. The city manager or the city manager's designee may promulgate rules,
regulations, and procedures to implement and administer this chapter to ensure the
efficient and timely collection of the tax imposed by this chapter, including, without
limitation, formulation and implementation of penalties and interest to be assessed for
failure to pay the tax as provided.
C. The city manager or the city manager's designee shall annually review the
cannabis taxes imposed by this chapter and publish a report detailing the total amount
of revenue raised from the cannabis tax.
D. Pursuant to California Constitution Article XIIIB, the appropriation limit for
the city is increased to the maximum extent over the maximum period of time allowed
under law consistent with the revenues generated by the cannabis tax.
3.48.080 Returns and remittances.
The tax shall be due and payable as follows:
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A. All cannabis businesses subject to this chapter shall, on or before the last
day of the month following the close of each calendar month, or such different reporting
period as may be established by the city manager or the city manager's designee, file a
tax return with the city manager or the city manager's designee on forms provided by
the city manager or the city manager's designee, of the amount of tax owed for the
preceding calendar month.
B. The return shall be filed whether or not taxes are owed during the month.
C. Each such return shall contain a declaration under penalty of perjury,
executed by the cannabis business or authorized agent, that to the best of the
signatory's knowledge, the statements in the return are true, correct and complete.
D. At the time the return is filed, the full amount of the tax owed for the
preceding calendar month shall be remitted to the city manager or the city manager's
designee.
E. Returns and accrued tax payments are due immediately upon cessation of
business for any reason.
F. Returns and taxes not received by the city manager or the city manager's
designee on or before the due date as provided in this section are delinquent and
subject to the penalties imposed under Section 3.48.090.
G. Returns filed and taxes remitted by mail shall be deemed timely filed only
if the envelope or similar container enclosing the returns and taxes is addressed to the
city manager or the city manager's designee, has sufficient postage, and bears a United
States postmark or a postage meter imprint prior to midnight on the last day for
reporting and remitting without penalty. If the envelope or other container bears a
postage meter imprint as well as a United States Post Office cancellation mark, the
latter shall govern in determining whether the filing and remittance are timely.
H. The city manager or the city manager's designee is not required to send a
delinquency or other notice or bill to any person subject to the provisions of this chapter;
and failure to send such notice or bill shall not affect the validity of any tax or penalty
due under the provisions of this chapter.
3.48.090 Failure to pay tax.
A. Any person who fails or refuses to pay any tax required to be paid
pursuant to this chapter on or before the due date shall pay penalties and interest as
follows:
1. A penalty equal to twenty-five percent of the amount of the tax in addition
to the amount of the tax, plus interest on the unpaid tax calculated from the due date of
the tax at a rate established by resolution of the city council; and
2. An additional penalty equal to twenty-five percent of the amount of the tax
if the tax remains unpaid for a period exceeding one calendar month beyond the due
date, plus interest on the unpaid tax and interest on the unpaid penalties calculated at
the rate established by resolution of the city council.
B. Whenever a check is submitted in payment of a tax and the check is
subsequently returned unpaid by the bank upon which the check is drawn, and the
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check is not redeemed prior to the due date, the cannabis business will be liable for the
tax amount due plus penalties and interest as provided for in this section plus any
amount allowed under state law.
C. The tax due shall be that amount due and payable from January 1, 2014
or the first date on which the cannabis business first operated in the city, whichever date
occurred last, together with applicable penalties and interest calculated in accordance
with subsection A of this section.
D. The city manager may waive the first and second penalties of twenty-five
percent each imposed upon any person if:
1. The person provides evidence satisfactory to the city manager that failure
to pay timely was due to circumstances beyond the control of the person and occurred
notwithstanding the exercise of ordinary care and the absence of willful neglect, and the
person paid the delinquent business tax and accrued interest owed the city prior to
applying to the city manager for a waiver.
2. The waiver provisions specified in this subsection shall not apply to
interest accrued on the delinquent tax and a waiver shall be granted only once to the
same person or entity during any twenty-four month period.
3.48.100 Refunds.
A. No refund shall be made of any tax collected pursuant to this chapter,
except as provided in this section.
B. No refund of any tax collected pursuant to this chapter shall be made
because of the discontinuation, dissolution, or other termination of a cannabis business.
C. Any person entitled to a refund of taxes paid pursuant to this chapter may
elect in writing to have such refund applied as a credit against the cannabis business'
taxes for the next calendar month.
D. Whenever the amount of any tax, penalty, or interest has been overpaid,
paid more than once, or has been erroneously or improperly collected or received by
the city under this chapter, the overpayment may be refunded as provided in
subsections (E) and (F), provided a claim in writing under penalty of perjury stating the
specific grounds upon which the claim is founded is filed with the city manager or the
city manager's designee within three years of the date of payment. The claim shall be
on forms available from the city manager or the city manager's designee.
E. The city manager or the city manager's designee shall have the right to
examine and audit all the books and business records of the claimant in order to
determine the eligibility of the claimant to the claimed refund. No claim for refund shall
be allowed if the claimant therefor refuses to allow such examination of claimant's
books and business records after request by the city manager or the city manager's
designee to do so.
F. The city manager or the city manager's designee shall initiate a refund of
any tax that has been overpaid or erroneously collected whenever the overpayment or
erroneous collection is uncovered by a city audit of tax receipts. In the event that the tax
was erroneously paid and the error is attributable to the city, the entire amount of the tax
erroneously paid shall be refunded to the claimant. If the error is attributable to the
claimant, the city shall retain the amount set forth in this resolution from the amount to
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be refunded to cover expenses.
3.48.110 Enforcement.
A. It shall be the duty of the city manager to enforce each and all of the
provisions of this chapter. The chief of police shall render such assistance in the
enforcement of this chapter as may from time to time be required by the city manager.
B. For purposes of administration and enforcement of this chapter generally,
the city manager, with the concurrence of the city attorney, may from time to time
promulgate administrative rules and regulations.
C. The city manager shall have the power to audit and examine all books and
records of cannabis businesses as well as persons engaged in the operation of a
cannabis business, including both state and federal income tax returns, California sales
tax returns, or other evidence documenting the gross receipts of a cannabis business or
persons engaged in the operation of a cannabis business, for the purpose of
ascertaining the amount of tax, if any, required to be paid by the provisions of this
chapter, and for the purpose of verifying any statements or any item thereof when filed
by any person pursuant to the provisions of this chapter. If such cannabis business or
person, after written demand by the city manager, refuses to make available for audit,
examination or verification such books, records, or equipment as the city manager
requests, the city manager may, after full consideration of all information within the city
manager's knowledge concerning the cannabis business and its business and activities
of the person so refusing, make an assessment in the manner provided in Section
3.48.090.
D. The conviction and punishment of any person for failure to pay the
required tax shall not excuse or exempt such person from any civil action for the tax
debt unpaid at the time of such conviction. No civil action shall prevent a criminal
prosecution for any violation of the provisions of this chapter or of any state law
requiring the payment of all taxes.
E. Any person violating this chapter or any rules promulgated pursuant to this
chapter, or knowingly or intentionally misrepresenting to any officer or employee of the
city any material fact in procuring a certificate or document from the city shall be guilty
of an infraction violation and upon conviction thereof shall be punishable by a fine not
more than five hundred dollars, in addition to any other penalties or fees imposed
pursuant to this chapter.
3.48.120 Debts—Deficiencies—Assessments.
A. The amount of any tax, penalties, and interest imposed by the provisions
of this chapter shall be deemed a debt to the city and any person operating a cannabis
business without first having procured a business license pursuant to Chapter 3.28,
local license pursuant to Chapter 5.88, and conditional use permit pursuant to Chapter
9.108 of this code shall be liable in an action in the name of the city in any court of
competent jurisdiction for the amount of the tax, and penalties and interest imposed on
such cannabis business.
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B. Any and all alleged deficiencies identified by the city manager shall be
addressed in accordance with Section 3.26.150 of this code; except that the city
manager may engage in any of the privileges or assume any of the duties delegated to
the tax administrator.
3.48.130 Exemptions.
The tax imposed in Section 3.48.010(A) of this chapter shall not apply to any
nonprofit organization that is exempted from taxes by Chapter 4 (commencing with
Section 23701) of Part 11 of Division 2 of the Revenue and Taxation Code or
Subchapter F (commencing with Section 501) of Chapter 1 of Subtitle A of the Internal
Revenue Code of 1986, or the successor of either, or to any minister, clergyman,
Christian Science practitioner, rabbi, or priest of any religious organization that has
been granted an exemption from federal income tax by the United States Commissioner
of Internal Revenue as an organization described in Section 501(c)(3) of the Internal
Revenue Code or a successor to that section."
SECTION 2. The adoption of this ordinance is not a "project" subject to the
requirements of the California Environmental Quality Act (CEQA) (Public Resources
Code Section 21000 et seq.). CEQA Guideline 15378(b)(4) provides that the creation of
government funding mechanisms or other government fiscal activities that do not
involve any commitment to a specific project that may result in a potentially significant
physical impact on the environment are not projects subject to the requirements of
CEQA.
SECTION 3. If any part or provision of this ordinance, or the application of this
ordinance to any person or circumstance, is held invalid, the remainder of this
ordinance, including the application of such part or provisions to other persons or
circumstances, shall not be affected by such a holding and shall continue in full force
and effect. To this end, the provisions of this ordinance are severable.
SECTION 4. This ordinance shall be submitted to the voters at the general
election to be held on November 4, 2016. In accordance with Elections Code section
9217, this ordinance shall not become operative unless and until a majority of the voters
approve this ordinance, in which case this ordinance shall go into effect ten (10) days
after the date on which the election results are declared by the City Council.
PASSED, APPROVED, AND ADOPTED BY THE PEOPLE OF THE CITY OF
CATHEDRAL CITY AT THE REGULAR MUNICIPAL ELECTION HELD ON THE 8TH
DAY OF NOVEMBER, 2016.
Stanley E. Henry, Mayor
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ATTEST:
Gary F. Howell, City Clerk
APPROVED AS TO FORM:
Eric S. Vail, City Attorney
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