A.
The
administrator is authorized to administer this chapter. Such authority
includes, without limitation, the ability to promulgate administrative
rules and regulations consistent with the provisions of this code
as needed to enforce and administer this chapter. Rules and regulations
adopted by the administrator require City Council approval.
B.
The
administrator has the power and duty to enforce each and all of the
provisions of this chapter including, without limitation, the rules
and regulations promulgated in accordance with the chapter.
C.
For
good cause, the administrator may enter into agreements to vary the
strict requirements of this chapter in order to avoid a hardship where
the administrative costs of collection and remittance greatly outweigh
the tax benefit. Such agreements must be on file in the administrator's
office and may be voided by the administrator or the City at any time.
D.
The
administrator will determine the eligibility of any person who asserts
a right to exemption from the tax imposed by this chapter.
(Ord. 1332 § 1, 12/12/16)
If a business subject to the tax is operating both within and
outside the City, the person operating the business must maintain
separate books and records and if permitted by law, bank accounts,
for business operations within and outside of the City at all times.
(Ord. 1332 § 1, 12/12/16)
A.
Taxes
collected from a person, or owed by a person which are not received
by the administrator on or before the due dates provided in this chapter
are delinquent and are subject to penalties and interest. Should the
due date occur on a weekend or legal holiday, the return must be received
by the administrator on the first regular working day following a
Saturday/Sunday or legal holiday. A direct deposit, including electronic
fund transfers and other similar methods of electronically exchanging
monies between financial accounts, made by a person in satisfaction
of its obligations under this subsection is considered timely if the
transfer is initiated on or before the due date, and the transfer
settles into the City's account on or before the following business
day.
B.
If the
person required to remit the tax fails to remit the tax, the administrator
will attach a penalty for such delinquencies or deficiencies at the
rate of 5% of the total tax that is delinquent or deficient in the
remittance, and if not remitted within two working days after the
date of the delinquency, will pay a total penalty of 20% of the amount
of tax owed.
C.
In addition
to all other authorizations under this section, the administrator
may impose a maximum civil penalty of five thousand dollars ($5.000.00)
per day upon an unlicensed cannabis facility that fails to remit any
tax required by this chapter.
D.
The
administrator has the power to impose additional penalties upon persons
required to remit taxes under the provisions of this chapter for fraud
or gross negligence in reporting or remitting at the rate of 50% of
the amount of the tax required to be remitted, or as recomputed by
the administrator.
E.
In addition
to any other penalties imposed by this chapter, any person required
to remit any tax imposed by the provisions of this chapter who fails
to remit the tax must pay interest at the rate of three-quarters of
one percent (0.75%) per month, or any fraction thereof, on the amount
of the tax, exclusive of penalties, from the date on which the remittance
first became delinquent, until paid.
F.
No penalty
or interest will be applied if delinquencies are the result of natural
disasters or other phenomena beyond the control of the person charged
with remitting the tax, provided the person being delinquent notifies
the administrator as soon as normal communications permit.
(Ord. 1332 § 1, 12/12/16; Ord. 1338 § 3, 5/22/17)
The administrator may make an assessment for tax not paid or
remitted by a person required to pay or remit. The administrator must
mail a notice of such assessment, which refers briefly to the amount
of the tax, penalties and interest imposed and the time and place
where the assessment may be contested, to the person and/or the persons
at least 10 days before the date of the hearing and post such notice
for at least five continuous days before the date of the hearing.
A penalty of 25% of the amount of the tax set forth in the notice
must be imposed, along with interest at the rate of three-quarters
of one percent (0.75%) per month, or any fraction thereof, on the
amount of the tax, exclusive of penalties, from the date on which
the remittance first became delinquent, until paid. Any interested
party having any objections may appear and be heard at the hearing
provided his or her objection is filed in writing with the administrator
before the time of the hearing. At the time fixed for considering
such assessment, the administrator will hear the same, together with
any objections filed as provided in this subsection, and thereupon
may confirm or modify such assessment.
(Ord. 1332 § 1, 12/12/16)
A.
It is
the duty of every person required to remit to the City any tax imposed
by this chapter to keep and preserve, for a period of at least three
years, all records as may be necessary to determine the amount of
such tax as he or she may have been liable for remittance to the administrator,
which records the administrator, or the administrator's designated
representative, must have the right to inspect at a reasonable time.
B.
The
administrator may issue a legislative subpoena, in a form approved
by the City Attorney, to compel a person to deliver to the administrator,
copies of all records deemed necessary by the administrator to establish
compliance with this chapter, including the delivery of records in
a common electronic format on readily available media if such records
are kept electronically by the person in the usual and ordinary course
of business. As an alternative to delivering the subpoenaed records
to the administrator on or before the due date provided in the administrative
subpoena, such person may provide access to such records outside the
City on or before the due date, provided that such person must reimburse
the City for all reasonable travel expenses incurred by the City to
inspect those records, including travel, lodging, meals, and other
similar expenses, but excluding the normal salary or hourly wages
of those persons designated by the City to conduct the inspection.
C.
The
administrator is authorized to execute a non-disclosure agreement
approved by the City Attorney to protect the confidentiality of personal
information pursuant to Revenue and Tax Code Sections 7284.6 and 7284.7.
D.
If a
person uses a billing agent or billing aggregator to bill, collect,
and/or remit the tax, the person must:
1.
Provide
to the administrator the name, address and telephone number of each
billing agent and billing aggregator currently authorized by the person
to bill, collect, and/or remit the tax to the City; and
2.
Upon
request of the administrator, deliver, or effect the delivery of,
any information or records in the possession of such billing agent
or billing aggregator that, in the opinion of the administrator, is
necessary to verify the proper application, calculation, collection
and/or remittance of such tax to the City.
E.
If any
person subject to record-keeping under this section unreasonably denies
the administrator access to such records, or fails to produce the
information requested in a legislative subpoena within the time specified,
the administrator may impose a penalty of $500 on such person for
each day following:
F.
If any
person subject to the gross receipts based tax and the record-keeping
requirements under this section is being audited by the Internal Revenue
Service, Franchise Tax Board, Board of Equalization, or any other
similar taxing and regulatory entities, the person must submit all
audit notices, findings, adjustments, and determination letters to
the administrator within five working days.
(Ord. 1332 § 1, 12/12/16)
A.
Whenever
the amount of any tax is overpaid, paid more than once, or was erroneously
collected or received by the administrator under this chapter it may
be refunded as provided in this section.
B.
The
administrator may refund any tax that was overpaid, paid more than
once, or erroneously collected or received by the administrator under
this chapter, provided that no refund will be paid under the provisions
of this section unless the claimant or his or her guardian, conservator,
executor or administrator submits a written claim to the administrator
within one year of the overpayment or erroneous or illegal collection
of said tax. Such claim must clearly establish claimant's right to
the refund by written records showing entitlement thereto. Nothing
herein permits the filing of a claim on behalf of a class or group
of taxpayers. Where the amount of any individual refund claim is in
excess of $25,000, City Council approval is required in addition to
approval by the administrator.
C.
The
administrator, or the City Council where the claim is in excess of
$25,000 and the administrator has approved the claim, must act upon
the refund claim within 45 days of the initial receipt of the refund
claim. Said decision is the City's final decision. If the administrator/City
Council fails or refuses to act on a refund claim within the 45 day
period, the claim is deemed rejected by the administrator/City Council
on the forty-fifth (45th) day. The administrator will give notice
of the action in a form which substantially complies with that set
forth in Government Code Section 913.
D.
The
filing of a written claim is a prerequisite to any lawsuit. Any action
brought against the City pursuant to this chapter is subject to the
provisions of Government Code Sections 945.6 and 946.
E.
Notwithstanding
anything to the contrary, a person is entitled to take any overpayment
as a credit against an underpayment whenever such overpayment was
received by the City within the three years next preceding a notice
of tax deficiency or assessment by the administrator, or during any
year for which the person, at the request of the administrator, executed
a waiver of the defense of the statute of limitations with regard
to any claim the City may have for a tax. Under no circumstances may
an overpayment taken as a credit against an underpayment pursuant
to this subsection qualify a person for a refund to which the person
would not otherwise be entitled under the written claim requirements
of this chapter.
(Ord. 1332 § 1, 12/12/16)
A.
The
provisions of this section apply to any assessment, decision or administrative
ruling of the administrator, other than a decision relating to a refund.
Any person aggrieved by any assessment, decision or administrative
ruling of the administrator, other than a decision relating to a refund,
is required to comply with the appeals procedure of this section.
Compliance with this section is a prerequisite to a lawsuit. Nothing
permits the filing of a claim or action on behalf of a class or group
of taxpayers.
B.
If any
person is aggrieved by any assessment, decision or administrative
ruling of the administrator, other than a decision relating to a refund;
or with the failure of the administrator to grant an exemption as
provided for under this chapter; he or she may appeal to the City
Council by filing a notice of appeal with the City Clerk within 14
days of the date of the assessment, decision or administrative ruling
of the administrator which aggrieved the person or person.
C.
The
matter will be set for hearing not more than 30 days from the receipt
of the appeal. The appellant will be served with notice of the time
and place of the hearing, as well as any relevant materials, at least
five calendar days before the hearing. The hearing may be continued
from time to time upon mutual consent. At the time of the hearing,
the appealing party, the administrator, and any other interested person
may present such relevant evidence as he or she may have relating
to the determination from which the appeal is taken.
D.
Based
upon the submission of such evidence and the review of the City's
files, the City Council will issue a written notice and order upholding,
modifying or reversing the determination from which the appeal is
taken. The notice must be given within 14 days after the conclusion
of the hearing and must state the reasons for the decision. The notice
will specify that the decision is final and that any petition for
judicial review must be filed within 90 days from the date of the
decision in accordance with Code of Civil Procedure Section 1094.6.
If the City Council fails or refuses to act on a refund claim within
the 14 day period after the assessment, decision or administrative
ruling, the claim is deemed to have been rejected by the City Council
on the fourteenth (14th) day. The action of the City Council is final
and conclusive.
E.
No injunction
or writ of mandate or other legal or equitable process may issue in
any suit, action, or proceeding in any court against this City or
against any officer of the City to prevent or enjoin the collection
under this chapter of any tax or any amount of tax required to be
remitted.
(Ord. 1332 § 1, 12/12/16)
The City's appropriations limit established under Article XIIIB
of the California Constitution will be increased by the amount collected
by the levy of the tax in accordance with the applicable requirements
of California law.
(Ord. 1332 § 1, 12/12/16)
