This Article II of Chapter 3.37 of the Bellflower Municipal Code must be approved by voters in accordance with applicable law.
(Ord. 1332 § 1, 12/12/16; Ord. 1324 § 1, 3/7/17)
There is established and imposed, beginning July 1, 2017, a
cannabis tax in the manner and rates set forth in this chapter.
(Ord. 1332 § 1, 12/12/16; Ord. 1324 § 1, 3/7/17)
A.
Tax
on Commercial Cannabis Cultivation Except Nurseries.
1.
Every
person who is engaged in commercial cannabis cultivation in the City
must pay an annual cannabis tax. The initial tax rate effective July
1, 2017 for commercial cannabis cultivation, excluding nurseries,
is set at $15 per fiscal year, per square foot of canopy space authorized
by each City permit, or by each State license in the absence of a
City permit, not deducting for unutilized square footage. The square
footage is the maximum square footage of canopy allowed by the City
permit for commercial cannabis cultivation, or, in the absence of
a City permit, the square footage is the maximum square footage of
canopy for commercial cannabis cultivation allowed by the State license
type. In no case can canopy square footage which is authorized by
the permit or license, but not utilized for cultivation, be deducted
for the purpose of determining the tax for cultivation unless duly
authorized in writing by the administrator.
2.
Beginning
on July 1, 2020, the tax rate will automatically increase each fiscal
year by $2.50 per square foot of authorized canopy. Except as otherwise
provided, the maximum tax rate is $25 per square foot.
B.
Tax
on Cultivation of Cannabis as a Nursery.
1.
Every
person who is engaged in cultivation of cannabis as a nursery as defined
in this chapter in the City must pay an annual cannabis tax. The initial
tax rate effective July 1, 2017 is set at $2 per square foot of canopy
authorized by each City permit, or by each State license in the absence
of a City permit, not deducting for unutilized square footage. The
square footage is the maximum square footage of canopy allowed by
the City permit for cultivation of cannabis as a nursery, or, in the
absence of a City permit, the square footage is the maximum square
footage of canopy for cultivation of cannabis as a nursery allowed
by the State license type. In no case must canopy square footage which
is authorized by the permit or license but not utilized for cultivation
as a nursery be deducted for the purpose of determining the tax for
cultivation as a nursery unless duly authorized in writing by the
administrator.
2.
Beginning
on July 1, 2020, such tax rate will automatically increase each fiscal
year by one dollar and fifty cents ($1.50) per square foot of canopy
utilized for cannabis cultivation as a nursery. Except as otherwise
provided, the maximum tax rate is $5 per square foot per annum.
C.
Tax
on Transportation Businesses. Every person who is engaged in a cannabis
transportation business must pay an annual cannabis tax of $1,500
per year effective July 1, 2017.
D.
Tax
on All Other Commercial Cannabis Businesses.
1.
Every
person who is engaged in business as a dispensary, manufacturer, testing
laboratory, or distribution facility, or engaging in delivery of cannabis
in the City must pay an annual commercial cannabis tax. The initial
tax rate effective July 1, 2017 is set at 5% of the gross receipts
per fiscal year.
2.
Beginning
on July 1, 2020, the tax rate will automatically increase each fiscal
year by two and one-half percent (2.5%). Except as otherwise provided,
the maximum tax rate is 10% per fiscal year on gross receipts.
(Ord. 1332 § 1, 12/12/16; Ord. 1324 § 1, 3/7/17)
A.
Beginning
on July 1, 2024, non-gross receipts based taxes imposed by this chapter
will be increased annually each July 1st on a percentage basis using
the percentage increase in the consumer price index ("CPI") for all
urban consumers as calculated by the United States Department of Labor,
Bureau of Labor Statistics, for the Los Angeles-Riverside-Orange County
area, for the 12 months ending March 31st of each year.
B.
Notwithstanding
any other provisions of this Code, the tax imposed in this chapter
will be increased by a minimum of one cent ($0.01) every year for
square footage-based or other non-gross receipts based taxes.
(Ord. 1332 § 1, 12/12/16; Ord. 1324 § 1, 3/7/17)
A.
Each
person required by this chapter to remit a tax must file a return
to the administrator on forms approved by the administrator on or
before the due date. The full amount of the tax owed must be included
with the return and filed with the administrator. The administrator
is authorized to require such additional information as deemed necessary
to determine if the tax is being levied, collected, and remitted in
accordance with this chapter. Pursuant to Revenue and Tax Code Section
7284.6, the administrator, and its agents, must maintain such filing
returns as confidential information, and not subject to the California
Public Records Act.
B.
The
cannabis tax imposed by this chapter is imposed on a fiscal year basis
and is due and payable in quarterly installments as follows:
1.
Each
person or business owing a cannabis tax must, on or before the last
day of the month following the close of each fiscal year quarter remit
to the administrator the tax due. The tax due is no less than the
quarterly installment due, but the taxpayer may at any time pay the
tax due for the entire fiscal year.
2.
If
the cannabis tax is owed on commercial cannabis cultivation, the square
footage tax due is paid based on the square footage of cultivation
authorized by the City permit. The tax will not be prorated or adjusted
for any reduction in the square footage authorized but not utilized
for cultivation unless duly authorized in writing by the administrator.
If the cultivation begins in the middle of a fiscal year, the administrator
must prorate, in daily increments, the amount due for the fiscal year.
C.
Tax
statements and payments for all outstanding taxes owed the City are
immediately due to the administrator upon cessation of business for
any reason.
D.
The
administrator may establish shorter reporting and payment periods
for any taxpayer as the administrator deems necessary to ensure collection
of the tax.
E.
The
administrator may, as part of administering the tax, modify the form
of payment and take such other administrative actions as needed to
facilitate collection of the tax.
(Ord. 1332 § 1, 12/12/16; Ord. 1324 § 1, 3/7/17)
B.
Except
as otherwise provided, any person that is exempt from the tax imposed
by this chapter must file an application with the administrator for
an exemption. The application for a tax exemption must be made upon
a form approved by the administrator and state those facts, declared
under penalty of perjury, which qualify the applicant for an exemption,
and include the names of all utility service providers serving that
person. If deemed exempt by the administrator, such person must give
the administrator timely written notice of any change in utility service
providers so that the administrator can properly notify the new utility
service provider of the person's tax exempt status.
C.
A person
failing to comply with this section is not entitled to a refund of
tax remitted to the administrator from such person as a result of
such noncompliance.
(Ord. 1332 § 1, 12/12/16; Ord. 1324 § 1, 3/7/17)
Nothing in this chapter requires the City Council to collect
a tax; the City Council may suspend or reduce tax rates imposed by
this chapter by resolution after a public hearing.
(Ord. 1332 § 1, 12/12/16; Ord. 1324 § 1, 3/7/17)
Unless voter approval is required by the California Constitution
or applicable law, the City Council may exercise all applicable powers
set forth in the Government Code including, without limitation, amending
this chapter by ordinance upon three affirmative votes by its members.
It may, in additional, adopt by ordinance or resolution such additional
regulations that may be necessary to implement the purposes of this
chapter.
(Ord. 1332 § 1, 12/12/16; Ord. 1324 § 1, 3/7/17)
