Every medical marijuana collective, cooperative, dispensary,
operator, establishment, provider or other type of entity legally
selling or providing medical marijuana within the City, consistent
with the provisions of the Medical Marijuana Program Act (California
Health and Safety Code Section 11362.5 et seq.) shall pay to the City
a monthly tax of 10 percent of its proceeds from such sales or provision.
(Ord. 560 11-4-14)
All cannabis facilities shall coordinate and create an account
with the City's cannabis fee collection system to collect all
monthly surcharges.
(Ord. 800, 4/16/2024)
The purpose of this tax is to raise revenue to fund general
municipal services.
(Ord. 560 11-4-14)
This tax shall not be specifically charged or assessed to any
qualified patient or primary caregiver. Payment and remittance of
the tax to the City shall solely be the responsibility of the medical
marijuana collective, cooperative, dispensary, operator, establishment,
provider or other type of entity, that is authorized to legally sell
or provide medical marijuana in the City, consistent with the provisions
of the Medical Marijuana Program Act (California Health and Safety
Code Section 11362.5 et seq.).
(Ord. 560 11-4-14)
Unless otherwise specifically provided in this chapter, the
words, terms and phrases used in this chapter shall have the same
meanings set forth in the Medical Marijuana Program Act (California
Health and Safety Code Section 11362.5 et seq.).
(Ord. 560 11-4-14)
“Legally selling or providing” shall mean any marijuana
collective, cooperative, dispensary, operator, establishment, provider
or other type of entity authorized by City ordinance to sell, distribute,
exchange, deliver, provide or dispense medical marijuana within the
jurisdictional boundaries of the City of Desert Hot Springs.
(Ord. 560 11-4-14)
“Proceeds” shall mean gross receipts of any kind,
including, without limitation, membership dues; the value of in-kind
contributions, exchanges, bartered goods or services; the value of
volunteer work; reimbursements provided by members regardless of form;
cash payments; and anything else of value obtained by any medical
marijuana collective, cooperative, dispensary, operator, establishment,
provider or other type of entity for legally selling or providing
medical marijuana in the City, consistent with the provisions of the
Medical Marijuana Program Act (California
Health and Safety Code Section
11362.5 et seq.).
(Ord. 560 11-4-14)
The City Council may repeal this chapter, or amend it in a manner
which does not result in an increase in the amount of the tax or broaden
the scope of the tax imposed herein, without further voter approval.
If the City Council repeals any pro-vision of this chapter, it may
subsequently reenact it without voter approval, as long as the reenacted
provision does not result in an increase in the amount of the tax
or broaden the scope of the tax imposed herein.
(Ord. 560 11-4-14)
Marijuana manufacturing facilities, as defined by DHSMC Section
17.180.030 and regulated pursuant to DHSMC Section
17.180.060, and as amended, are not subject to the taxes of this chapter.
(Ord. 663 5-15-18)
The City Manager, or designee, and/or the City Council by ordinance,
may promulgate regulations to implement and administer the provisions
of this chapter.
(Ord. 560 11-4-14)
Any entity that fails to pay the taxes required by this chapter
within 30 days after the due date shall pay in addition to the taxes
a penalty for nonpayment in a sum equal to 25 percent of the total
amount due. Additional penalties will be assessed in the following
manner: 10 percent shall be added on the first day of each calendar
month following the month of the imposition of the 25 percent penalty
if the tax remains unpaid— up to a maximum of 100 percent of
the tax payable on the due date. Receipt of the tax payment by the
City shall govern the determination of whether the tax is delinquent.
Postmarks will not be accepted as adequate proof of a timely payment.
(Ord. 560 11-4-14)
Any violation of this chapter shall constitute a public nuisance and infraction pursuant to the provisions of Chapters
4.16 and
4.28 of this municipal code.
(Ord. 560 11-4-14)
Whenever it is necessary to examine any books or records, including
tax returns, of any entity subject to the provisions of this chapter,
to ascertain the amount of any tax due pursuant to this chapter, the
City shall have the power and authority to examine such necessary
books and records at any reasonable time, including, but not limited
to, during normal business hours. Records must be maintained at least
seven years.
(Ord. 560 11-4-14)
No payment of any tax required under the provisions of this
chapter shall 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 cultivation, possession or provision of marijuana is legal
unless otherwise authorized and allowed by the State of California
for medical purposes and permitted by the City.
(Ord. 560 11-4-14)
This tax shall become operative commencing upon the effective
date of an ordinance permitting marijuana collectives, cooperatives,
dispensaries, operators, establishments, providers or other type of
entities to sell, distribute, exchange, deliver, provide or dispense
medical marijuana within the jurisdictional boundaries of the City
of Desert Hot Springs.
(Ord. 560 11-4-14)