This chapter is adopted pursuant to Government Code Sections
53723 and 53724 for the purpose of raising revenue for the city's
general governmental purposes.
(Ord. 1332 § 1, 12/12/16)
Unless the contrary is stated or clearly appears from the context,
the following definitions govern the construction of the words and
phrases used in this chapter. Words and phrases not defined by this
chapter will have the meanings stated elsewhere in this Code, or under
the California Government Code.
means the city manager, or designee.
means a corporation where:
The voting and non-voting stock of which is owned at least 80%
by such other corporation with which such transaction is had; or
Which owns at least 80% of the voting and non-voting stock of
such other corporation; or
At least 80% of the voting and non-voting stock of which is
owned by a common parent corporation which also has such ownership
of the corporation with which such transaction is had.
includes all activities engaged in or caused to be engaged
in within the City, including any commercial or industrial enterprise,
trade, profession, occupation, vocation, calling, or livelihood, whether
or not carried on for gain or profit, but does not include the services
rendered by an employee to his or her employer.
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
cannabis. "Cannabis" also means marijuana as defined by Health and
Safety Code Section 11018 and is not limited to medical cannabis.
means raw cannabis that has undergone a process whereby the
raw agricultural product has been transformed into a concentrate,
an edible product, or a topical product. "Cannabis product" also means
marijuana products as defined by Health and Safety Code Section 11018.1
and is not limited to medical cannabis products.
means a cannabis business delivering cannabis from licensed
facilities outside the City's jurisdiction to a person inside the
City's jurisdiction.
means all areas occupied by any portion of a cannabis plant,
inclusive of all vertical planes, whether contiguous or noncontiguous
on any one site. The plant canopy does not need to be continuous on
any premises in determining the total square footage which will be
subject to tax.
means any commercial business activity relating to cannabis
including, without limitation, cultivating, transporting, distributing,
manufacturing, compounding, converting, processing, preparing, storing,
packaging, delivering, and selling (wholesale and/or retail sales)
of cannabis and any ancillary products and accessories in the City,
whether or not carried on for gain or profit.
means cultivation conducted by, for, as part of a commercial
cannabis business.
means a permit issued pursuant to this Code authorizing a
person to operate or engage in a commercial cannabis business.
means any activity involving the planting, growing, harvesting,
drying, curing, grading, or trimming of cannabis.
means the commercial transfer of cannabis or cannabis products
from a dispensary.
means a facility where cannabis, cannabis products, or devices
for the use of cannabis or cannabis 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.
means a person or facility involved in the procurement, sale,
and/or transport of cannabis and cannabis products between permitted
or licensed entities.
means each and every person engaged in the operation or conduct
of any business, whether as owner, member of the owner's family, partner,
associate, agent, manager or solicitor, and each and every other person
employed or working in such business for a wage, salary, commission,
barter or any other form of compensation.
means the commencing, conducting, operating, managing or
carrying on of a cannabis business and the exercise of corporate or
franchise powers, whether done as owner, or by means of an officer,
agent, manager, employee, or otherwise, whether operating from a fixed
location in the City or coming into the City from an outside location
to engage in such activities. A person is deemed engaged in business
within the City if, and without limitation:
Such person or person's employee maintains a fixed place of
business within the City for the benefit or partial benefit of such
person;
Such person or person's employee owns or leases real property
within the City for business purposes;
Such person or person's employee regularly maintains a stock
of tangible personal property in the City for sale in the ordinary
course of business;
Such person or person's employee regularly conducts solicitation
of business within the City;
Such person or person's employee performs work or renders services
in the City; and
Such person or person's employee utilizes the streets within
the City in connection with the operation of motor vehicles for business
purposes.
means evidence such as, without limitation, use of signs,
circulars, cards or any other advertising media, including the use
of internet or telephone solicitation, or representation to a government
agency or to the public that such person is engaged in a marijuana
business in the City.
means July 1 through June 30 of the following calendar year.
except as otherwise specifically provided, means the total
amount actually received or receivable from all sales; 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 materials, goods, wares
or merchandise; discounts, rents, royalties, fees, commissions, dividends,
and gains realized from trading in stocks or bonds, however designated.
Included in "gross receipts" is all receipts, cash, credits and property
of any kind or nature, without any deduction there from 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 is excluded:
Cash discounts where allowed and taken on sales;
Credit allowed on property accepted as part of the purchase
price and which property may later be sold, at which time the sales
price is included as gross receipts;
Any tax required by law to be included in or added to the purchase
price and collected from the consumer or purchaser;
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;
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 solely for
a person's own account, not derived in the ordinary course of a business;
Receipts derived from the occasional sale of used, obsolete
or surplus trade fixtures, machinery or other equipment used by the
taxpayer in the regular course of the taxpayer's business;
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 are included in the
amount of gross receipts for the period when they are recovered;
Receipts of refundable deposits, except that such deposits when
forfeited and taken into income of the business must not be excluded
when in excess of one dollar ($1.00);
Amounts collected for others where the business is acting as
an agent or trustee and to the ex-tent 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 does not apply to any
fees, percentages, or other payments retained by the agent or trustees.
means a person that conducts the production, preparation,
propagation, or compounding of cannabis products either directly or
indirectly or by extraction methods, or independently by means of
chemical synthesis at a fixed location that packages or repackages
cannabis or cannabis products or labels or relabels its container,
that holds a valid City permit.
means a person that produces only clones, immature plants,
seeds, and other agricultural products used specifically for the planting,
propagation, and cultivation of cannabis.
means, without limitation, any natural individual, firm,
trust, common law trust, estate, partnerships of every kind, association,
syndicate, club, joint stock company, joint venture, limited liability
company, corporation (including foreign, domestic, and non-profit),
municipal corporation (other than the City), municipal district, cooperative,
or receiver, trustee, guardian or other representative appointed by
court.
means cultivation by a qualified patient who cultivates 100
square feet total canopy area or less of cannabis exclusively for
his or her personal medical use but who does not provide, donate,
sell, or distribute cannabis to any other person. "Personal medical
cannabis cultivation" also includes cultivation by a primary caregiver
who cultivates 100 square feet total canopy area or less of cannabis
exclusively for the personal medical purposes of no more than five
specified qualified patients for whom he or she is the primary caregiver,
but who does not receive remuneration for these activities except
for compensation in full compliance with Health and Safety Code Section
11362.765, as amended.
means and includes any sale, exchange, or barter.
means the maximum amount of canopy for commercial cannabis
cultivation authorized by a City permit issued to a person engaging
in commercial cannabis business, or by a state license in the absence
of a City permit or license, not deducting for unutilized square footage,
and is the basis for the tax base for cultivation.
means a State license issued pursuant to Business and Professions
Code Section 19300 et seq., or other applicable State law.
means the tax due pursuant to this chapter for engaging in
commercial cannabis business in the City.
means a facility, entity, or site in the state that offers
or performs testing of cannabis or cannabis products and that is both
of the following:
means the transfer of cannabis or cannabis products from
the permitted business location of one permittee or licensee to the
permitted business location of another permittee or licensee, for
the purposes of conducting commercial cannabis activity authorized
pursuant to State law.
means a person issued all required State and City permits
to transport cannabis or cannabis products between permitted facilities.
(Ord. 1332 § 1, 12/12/16; Ord. 1351 § 2, 3/12/18; Ord. 1353 §
2, 2/26/18)
A.
Paying
the tax required by this chapter, and its acceptance by the City,
does not entitle any person to carry on any cannabis business unless
the person has complied with all of the requirements of this Code
and all other applicable State laws.
B.
Taxes
paid pursuant to this chapter do not authorize the conduct of any
business. Monies collected from the tax imposed by this chapter is
solely for revenue and not for regulation.
(Ord. 1332 § 1, 12/12/16)
