This chapter is enacted solely to raise revenue for municipal purposes and is not intended for regulation. This chapter shall apply only if: (1) State or Federal law authorizes the use of cannabis for any non-medical business, personal, or recreational purpose or activity; and (2) cannabis businesses, as defined in this chapter, are otherwise authorized to operate pursuant to all applicable City and State laws and regulations. This chapter shall not be construed to authorize the conduct or continuance of any illegal business or of a legal business in an illegal manner. No business license shall be issued until and unless the City Council adopts or enacts regulations which specifically allow the establishment and operation of cannabis businesses, as defined in this chapter, within the City.
(Ord. 018-10 C.S. § 4, eff. 12-02-10; Ord. 2016-06-28-1503 C.S. § 3; Ord. 2019-03-05-1501 C.S. § 2)
For the purpose of this chapter, unless it is plainly evident from the context that a different meaning is intended, the following definitions shall apply:
"Cannabis"
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" does not include the mature stalks of the plant, fiber produced from the stalks, oil or cake made from the seeds of the plant, any other compound, manufacture, salt, derivative, mixture, or preparation of the mature stalks (except the resin extracted therefrom), fiber, oil, or cake, or the sterilized seed of the plant which is incapable of germinations. For the purpose of this chapter, "cannabis" does not mean "industrial hemp" as defined by Section 11018.5 of the Health and Safety Code.
"City"
means the City of Stockton.
"City Council"
means the City Council of the City of Stockton.
"Code"
means the Stockton Municipal Code.
"Commercial cannabis activity"
means the cultivation, possession, manufacture, distribution, processing, storing, laboratory testing, packaging, labeling, transportation, delivery or sale of cannabis or sale of cannabis and cannabis products or any other activity provided for in this code and in the Medicinal and Adult-Use Cannabis Regulation and Safety Act (Business and Professions Code, Division 10).
"Gross receipts"
shall be defined as set forth in Section 5.04.010 of this code, unless otherwise provided.
(Ord. 018-10 C.S. § 4, eff. 12-02-10; Ord. 2016-06-28-1503 C.S. § 3; Ord. 2019-03-05-1501 C.S. § 2)
A. 
Every business operating as a cannabis business shall pay a semiannual business license tax to the City in the following amount:
1. 
Cultivators will pay 5% of gross receipts semiannually;
2. 
Distributors will pay 1% of gross receipts semiannually;
3. 
Non-volatile manufacturers will pay 3% of gross receipts semiannually;
4. 
Volatile manufacturers will pay 3% of gross receipts semiannually;
5. 
Testing laboratories will pay zero percent of gross receipts semiannually;
6. 
Retail storefront cannabis business will pay 5% of gross receipts semiannually;
7. 
Retail non-storefront (delivery only) cannabis business will pay 5% of gross receipts semiannually;
8. 
Microbusinesses will pay 5% of gross receipts semiannually.
B. 
Cannabis businesses must apply for semiannual business licenses. Business license tax required hereunder shall be due and payable on the first day of January and July of each year.
C. 
Notwithstanding the tax rates imposed by this section, the City Council may, in its discretion, at any time by ordinance or resolution implement any lower tax rate it deems appropriate, and may increase such tax rate from time to time not to exceed the maximum tax rate authorized by this section.
(Ord. 018-10 C.S. § 4, eff. 12-02-10; Ord. 2016-06-28-1503 C.S. § 3; Ord. 2019-03-05-1501 C.S. § 2; Ord. 2019-07-16-1504 C.S. § 2; Ord. 2022-03-01-1601 C.S. § 2)
The ordinance codified in this chapter shall take effect only if approved by a majority of voters voting on the measure at the November 8, 2016 municipal election. If approved and enacted by the voters, this chapter shall only apply when and if State or Federal law authorizes the use of cannabis for any non-medical business, personal, or recreational purpose or activity, and cannabis businesses, as defined in this chapter, are otherwise authorized to operate pursuant to all applicable City and State laws and regulations.
(Ord. 018-10 C.S. § 4, eff. 12-02-10; Ord. 2016-06-28-1503 C.S. § 3; Ord. 2019-03-05-1501 C.S. § 2)