HomeMy WebLinkAboutCC Reso 2023-03 RESOLUTION NO. 2023-03
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CATHEDRAL
CITY, CALIFORNIA, REDUCING THE CANNABIS CULTIVATION,
DISPENSARY, AND MANUFACTURING TAX PURSUANT TO SECTION
3.48.040 OF THE CATHEDRAL CITY MUNICIPAL CODE
THE CITY COUNCIL OF THE CITY OF CATHEDRAL CITY FINDS:
A. At the November 2016 general election the voters approved Measure P, which
imposes the following taxes on cannabis businesses in the City:
• 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.
• Twenty-five dollars for each square foot or fractional part thereof of
cannabis cultivation space.
• One dollar for each gram of cannabis concentrate produced or
manufactured.
• One dollar for each unit of cannabis-infused product other than cannabis
concentrate produced or manufactured and packaged or intended for
individual sale.
B. Measure P authorizes the Council to set the taxes on cannabis at lower rates than
what was approved by the voters, and to establish exemptions, incentives, or other
reductions.
C. Via City Council Resolution No. 2017-13, 2018-46, 2019-02 and 2020-05 the City
Council has lowered the cannabis tax rates.
D. The City Council now desires to further reduce the tax on cannabis cultivation
space, cannabis dispensaries and cannabis manufacturing provided that the
cannabis business is current on all taxes due to the City.
THE CITY COUNCIL OF THE CITY OF CATHEDRAL CITY RESOLVES:
SECTION 1. The tax on cannabis cultivation space imposed by Section of
3.48.010 of the Cathedral City Municipal Code is lowered to ten dollars ($10.00) for each
square foot or fractional part thereof of cannabis cultivation space.
SECTION 2. The tax on gross receipts or fractional part thereof received by a
cannabis dispensary imposed by Section 3.48.010 of the Cathedral City Municipal Code
is lowered to five percent (5%).
SECTION 3. The tax on each cannabis piece (e.g., pre-roll, etc.,) produced or
manufactured as imposed by Section 3.48.010 of the Cathedral City Municipal Code is
lowered to five cents ($0.05). This reduction does not apply to the production or
manufacturing of cannabis oils, distillate, or other liquids.
SECTION 4. This Resolution shall apply to cannabis businesses that have paid
all taxes due to the City as of February 28, 2023. Should a cannabis business become
current on all taxes after February 28, 2023, the lower tax rates within this Resolution
will apply to the business beginning on the first day of the month following the month the
business becomes current. There will be no partial month prorations.
SECTION 5. This Resolution shall take effect March 1, 2023.
PASSED, APPROVED AND ADOPTED at a regular meeting of the City Council
of the City of Cathedral City held on this 22nd day of February, 2023, by the following vote:
Ayes: Councilmember Gutierrez , Gregory and Ross; Mayor Pro Tem
Carnevale and Mayor Lamb
Noes: None
Absent: None
Abstain: None
Rita Lamb, Mayor
ATTEST:
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Tracey '1Her osillo, City Clerk
APPROV . O -
Eric S. Vail, City Attorney
RIV#4872-7465-6336 v3