HomeMy WebLinkAboutOrd 742 ORDINANCE NO. 742
AN ORDINANCE OF THE PEOPLE OF CATHEDRAL
CITY, CALIFORNIA, ADDING CHAPTER 3.48 TO THE
CATHEDRAL CITY MUNICIPAL CODE, APPROVING AND
IMPLEMENTING A CANNABIS AND MARIJUANA TAX OF
UP TO 15 CENTS PER $1.00 OF PROCEEDS ON
CANNABIS OR MARIJUANA COLLECTIVES OPERATING
IN THE CITY.
THE PEOPLE OF THE CITY OF CATHEDRAL CITY ORDAINS:
SECTION 1. Chapter 3.48 is added to the Cathedral City Municipal Code to
read:
CANNABIS AND MARIJUANA TAX
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 Authorized Activity.
3.48.060 Cannabis and Marijuana Tax is Not a Sales Tax.
3.48.070 Amendments and Administration.
3.48.010 Imposition of Tax.
Every person engaged in operating or otherwise conducting a cannabis or
marijuana collective and/or dispensary (collectively referred to herein as "collective"),
and regardless of whether such collective has a permit pursuant o Chapter 9.108 of this
Code, shall pay a cannabis and marijuana tax of 15 cents for each $1.00 of proceeds or
fractional part thereof.
3.48.020 Definitions.
For purposes of this Chapter.
A. A "cannabis or marijuana collective" means any activity regulated or
permitted by Chapter 9.108 of this Code, or California Health and Safety Code sections
11362.5, et seq., as may be amended from time to time, or any other activity or
business that involves planting, cultivating, harvesting, transporting, dispensing,
delivering, providing, manufacturing, compounding, converting, processing, preparing,
storing, packaging, or testing any part of the marijuana plant for medical purposes.
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B. "Proceeds" means gross receipts of any kind, including without limitation,
membership dues; the value of in-kind contributions; reimbursements provided by
members regardless of form; any payments made; and anything else of value obtained
by a cannabis or marijuana collective.
3.48.030 Payment Obligation.
All taxpayers 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 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 enforcement remedies
provided in the Charter and this 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 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 Charter and California law. No action by the 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 implies or authorizes that any activity
connected with the distribution or possession of cannabis is legal under state law unless
otherwise authorized and allowed in strict and full conformance to the provisions of this
Code, including without limitation the provisions of Section 9.108. Nothing in this
Chapter shall be applied or construed as authorizing the sale of marijuana.
3.48.060 Cannabis and Marijuana Tax Is Not a Sales Tax.
The Cannabis and Marijuana 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 and Marijuana Tax shall not be separately identified or otherwise
specifically assessed or charged to any member, patient, or caretaker.
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3.48.070 Amendments and Administration.
A. This Chapter was submitted to the voters for approval. 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 shall 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 audit the
cannabis and marijuana taxes imposed by this Chapter to verify that tax revenues have
been properly expended in accordance with the law.
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 and marijuana tax.
SECTION 2. This Ordinance shall become effective upon adoption by a
majority of the voters casting votes at the general municipal election on November 4,
2014.
PASSED, APPROVED, AND ADOPTED BY THE PEOPLE OF THE CITY OF
CATHEDRAL CITY AT THE REGULAR MUNICI'AL ELECTION HELD THE 4TH DAY
OF NOVEMBER, 2014.
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Kathle/J. DeRosa, Mayor
ATTES :
ary 1. Howell, City lerk
APPROVED AS TO FORM:
Charles R. Green, City Attorney
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