This article shall be known as the "Cannabis Business Tax Ordinance."
(§ 2, Ord. 912, eff. December 13, 2020)
This article shall take effect immediately after the certification
of its approval by a simple majority of the City's voters at the November
3, 2020 General Municipal Election, pursuant to California Constitution,
Article XIII C, Section 2, subdivision (c).
(§ 2, Ord. 912, eff. December 13, 2020)
(a)
This
article is intended to achieve the following purposes, among others,
and shall be interpreted to accomplish such purposes:
(1)
Impose a tax on the privilege of conducting the following activities
within the City's jurisdiction: transporting, dispensing, manufacturing,
producing, processing, preparing, storing, testing, providing, donating,
selling, or delivering, or distributing cannabis, cannabis products,
cannabis accessories, or cannabinoid preparations delivering, or distributing
cannabis, cannabis products, cannabis accessories, or cannabinoid
preparations commercial cannabis businesses in the City of Ojai, under
the Control, Regulate and Tax Adult Use of Marijuana Act and the Medicinal
and Adult-Use Cannabis Regulation and Safety Act (California Business
and Professions Code Section 26000, et seq.). as they now exist or
may be amended from time to time, and local law, whether or not conducted
in compliance with such laws;
(2)
Impose a general tax that generates revenue that may be used by the
City for any lawful purpose, including, but not limited to, general
City services, public safety, road and transportation purposes, parks
and recreation purposes;
(3)
Specify the type of tax and rate of tax to be levied and the method
of collection, and general fund purposes; and
(4)
Comply with all requirements for imposition of a general tax.
(b)
This
article is enacted solely to raise revenue and not for regulation.
It is not a sales and use tax, a tax upon income, a transient occupancy
tax, utility user tax, or a tax upon real property, and does not change
any obligations under those taxes. It shall apply to all persons engaged
in cannabis businesses in the City. The tax imposed by this article
is a general tax under Articles XIII A and XIII C of the California
Constitution.
(c)
This
article does not authorize the conduct of any business or activity
in the City but provides for the taxation of such businesses or activities
as they occur. Neither the imposition of such tax by the City nor
the payment of such tax by the taxpayer shall imply that the activity
being taxed is lawful. This article shall apply to each cannabis business
in the City, whether or not such business has a permit issued pursuant
to the City of Ojai Municipal Code.
(§ 2, Ord. 912, eff. December 13, 2020)
of cannabis or cannabinoid preparations means the use permitted
by Section 11362.1 of the California Health and Safety Code.
means all parts of the plant Cannabis sativa L., whether
growing or not; the seeds thereof; the resin extracted from any part
thereof; and every compound, manufacture, salt, derivative, mixture,
or preparation of the plant, its seeds, or resin. "Cannabis" does
not include:
Industrial hemp, as defined in Section 11018.5 of the California
Health and Safety Code; or
The weight of any other ingredient combined with cannabis to
prepare topical or oral administrations, food, drink, or other products.
means cannabis or cannabis products intended to be sold for
use by adults 21 years of age and over who do not possess a physician's
recommendation for the use of cannabis issued in accordance with the
Compassionate Use Act of 1996 (California Health and Safety Code Section
11362.5).
is defined as that term is defined in California Health and
Safety Code Section 11018.2.
means any business that conducts any, all, or a portion of
the following activities: transporting, dispensing, manufacturing,
producing, processing, preparing, storing, testing, providing, donating,
selling, retailing, delivering, or distributing cannabis, cannabis
products, cannabis accessories, or cannabinoid preparations by commercial
cannabis businesses, in the City of Ojai, under the Control, Regulate
and Tax Adult Use of Marijuana Act and the Medicinal and Adult-Use
Cannabis Regulation and Safety Act (California Business and Professions
Code Section 26000, et seq.), as they now exist or may be amended
from time to time, and local law, whether or not conducted in compliance
with such laws.
means cannabis that has undergone a process whereby the plant
material has been transformed into a concentrate, including, but not
limited to, concentrated cannabis, or an edible or topical product
containing cannabis or concentrated cannabis and other ingredients.
means the commercial transfer of cannabis or cannabinoid
preparations to a customer, and is a component of retail commercial
cannabis activity. "Delivery" also includes the use by a retailer
of any technology platform owned and controlled by the retailer or
independently licensed under California law that enables customers
to arrange for or facilitate the commercial transfer by a licensed
retailer of cannabis or cannabinoid preparations.
means the following: (1) the total amount of consideration
actually received or receivable from all sales; (2) the total amount
of compensation actually received or receivable for the performance
of any act or service, of whatever nature, for which a charge is imposed
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; (3) any and all rents, royalties, fees, commissions,
or dividends received or receivable, and (4) gains realized from trading
in stocks or bonds, however designated. Included in "gross receipts"
shall be all receipts, cash, credits and property of any kind or nature,
without any deduction or setoff therefrom 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
the following shall be excluded therefrom:
Credit allowed on property accepted as part of the purchase
price and which property may later be sold, at which time the sales
price shall be 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 property returned by purchasers
upon rescission of a contract of sale as is refunded either in cash
or by credit;
Receipts of refundable deposits, except that such deposits when
forfeited and taken into income of the business shall not be excluded;
Amounts collected for others where the business is acting as
an agent or trustee to the extent that such amounts are paid to those
for whom collected, provided the agent or trustee has furnished the
administrator with the names and addresses of the others and the amounts
paid to them. This exclusion shall not apply to any fees, percentages,
or other payments retained by the agent or trustee;
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 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 shall be included
in the amount of gross receipts for the period when they are recovered;
Transactions between a partnership and its partners;
Transactions between a limited liability company and its member(s),
provided the limited liability company has elected to file as a Subchapter
K entity under the Internal Revenue Code and that such transaction(s)
shall be treated the same as between a partnership and its partner(s)
as specified in subsection 9, above; and
Receipts from services or sales in transaction between affiliated
corporations; an affiliated corporation is defined as a corporation:
Which owns at least 80% of the voting and non-voting stock of
such other corporation, or
The voting and non-voting stock of which is owned at least eighty
percent by such other corporation with which such transaction is had,
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.
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As to any person engaged in the business of manufacturing or
processing any goods, wares, merchandise, article or commodity at
a fixed place of business within the City which does not generate
gross receipts as defined herein within the City, gross receipts shall
be deemed to include the total of all expenses incurred in the manufacturing
or processing of such goods at the business location within the City
for payroll, utilities, depreciation, and/or rent. As to any person
engaged in the business of operating an administrative headquarters
at a fixed place of business within the City who does not have gross
receipts as defined herein within the City, gross receipts shall be
deemed to include the total gross payroll of all persons employed
at such administrative headquarters.
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Notwithstanding the foregoing, for any cannabis microbusiness,
which conduct cannabis manufacturing, distribution, and retail activities,
the gross receipts of such business shall include the gross receipts
earned at each of the three stages of the cannabis microbusiness activities,
including the gross receipts earned or which would be earned upon
the value of cannabis manufactured by the cannabis microbusiness,
the gross receipts earned or which would be earned upon the value
of cannabis distributed by the cannabis microbusiness, and the gross
receipts earned or which would be earned upon the value of cannabis
sold by the cannabis micro-business; whether or not, for each stage
of the cannabis microbusiness, the product of the cannabis manufacturing,
distribution, and retail activities is sold or transferred from the
cannabis microbusiness.
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of cannabis or cannabinoid preparations means the use permitted
by the Compassionate Use Act (California Health and Safety Code Section
11362.5) and the Medical Marijuana Program Act (California Health
and Safety Code Section 11362.7 et seq.).
includes any individual, firm, co-partnership, joint venture,
association, corporation, limited liability company, estate, trust,
business trust, receiver, syndicate, or any other group or combination
acting as a unit, and the plural as well as the singular.
is defined as that term is defined in California Health and
Safety Code Section 11362.7, subdivision (d).
means a seriously ill person who obtains a written recommendation
from a physician licensed to practice medicine in the State of California
to use cannabis for personal medical purposes. In addition, persons
currently under the care of a physician for a "serious medical condition"
as that term is defined in California Health and Safety Code Section
11362.7, subdivision (h) are presumed to be "qualified patients."
means the production, preparation, or compounding of cannabis
products, including extraction processes, infusion processes, the
packaging or repackaging of manufactured cannabis or cannabis products,
and labeling or relabeling the packages of manufactured cannabis or
cannabis product.
means all aspects of the manufacture, extraction and/or infusion
processes, including processing, preparing, holding, storing, packaging,
or labeling of cannabis products. "Manufacturing" shall also include
any processing, preparing, holding, or storing of components and ingredients.
means any commercial adult-use cannabis business that engages
in commercial manufacturing, distribution, and retail sales of cannabis
for adult-use and medical purposes.
means any solvent used in the extraction process that is
not a volatile solvent, including carbon dioxide.
means any solvent that is or produces a flammable gas or
vapor that, when present in the air in sufficient quantities, will
create explosive or ignitable mixtures.
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Any term defined in this section also means the very term as
defined in the California Business and Professions Code or the California
Health and Safety Code, unless otherwise specified.
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(§ 2, Ord. 912, eff. December 13, 2020)
(a)
There is hereby imposed on every cannabis business in the City an annual tax at a rate to be established from time to time by resolution of the City Council. The tax for all cannabis businesses shall be imposed with respect to the gross receipts of such businesses up to a maximum of 10%, of the business' gross receipts. The tax imposed under this section shall be due and payable as provided in Section 8-1.712.
(b)
The City Council may by resolution, in its discretion, implement a tax rate lower than the maximum rate established in subsection (a) of this section for all persons engaged in a cannabis business in the City, or establish differing tax rates for each of different categories of cannabis business activities. The City Council may, by resolution, also decrease or increase any such tax rate from time to time, provided that the tax rate shall not, at any time, be above the maximum tax rates established in subsection (a) of this section.
(c)
All
gross receipts earned from transporting, dispensing, manufacturing,
producing, processing, preparing, storing, testing, providing, donating,
selling, retailing, delivering, or distributing cannabis, cannabis
products, cannabis accessories, or cannabinoid preparations by commercial
cannabis businesses, in the City of Ojai, to an authorized medical
cannabis patient or authorized medical cannabis patient's designated
primary caregiver who possesses a County-issued medical cannabis identification
card issued and valid under the provisions of Health and Safety Code
Section 11362.71 et seq., shall be exempt from taxation under this
article.
(§ 2, Ord. 912, eff. December 13, 2020)
(a)
All
persons engaging in a cannabis business, whether an existing, newly-established
or acquired business, shall register with the City Manager's office
by the later of: (1) 30 days of commencing operation; or (2) by the
effective date of the ordinance adding this section to the Ojai Municipal
Code and shall annually renew such registration no less frequently
than one calendar year after the date of the most recent registration.
In registering, such persons shall furnish to the City Manager a sworn
statement, upon a form provided by the City Manager, setting forth
the following information:
(b)
Registrants
shall pay an annual registration fee in an amount established from
time to time by ordinance or resolution of the City Council to recover
the City's costs to implement the taxes imposed under this article,
the registration requirement of this section, and the other provisions
of this article. As a regulatory fee, such fee shall be limited to
the City's reasonable regulatory costs.
(§ 2, Ord. 912, eff. December 13, 2020)
All taxpayers subject to a tax under this article shall pay
that tax regardless of any rebate, exemption, incentive, or other
reduction set forth elsewhere in this Code, except as required by
State or Federal law. Failure to pay such a tax shall be subject to
penalties, interest charges, and assessments as provided in this article
and the City may use any or all other Code enforcement remedies available
at law or in equity. No provision of this Code shall be interpreted
to reduce a tax rate established under this article or otherwise reduce
the taxes paid hereunder unless the provision specifically expresses
that reduction.
(§ 2, Ord. 912, eff. December 13, 2020)
The payment of a tax imposed under this article shall not be construed to authorize the conduct or continuance of any illegal business or of a legal business in an illegal manner. Nothing in this article authorizes or implies the lawfulness of any activity connected with the distribution or possession of cannabis unless otherwise authorized and allowed in strict and full conformance with this Code, including, without limitation, the provisions of Title 4, Chapter 26. Nothing in this article shall be applied or construed as authorizing the sale, cultivation (including nurseries), transportation, distribution, manufacture, compounding, conversion, processing, preparation, testing, storage, packaging, delivery and sale (wholesale and/or retail sales) of cannabis, cannabis products, or any accessories for the use of recreational cannabis or cannabis products.
(§ 2, Ord. 912, eff. December 13, 2020)
The taxes provided for under this article are excise taxes on
the privilege of conducting a cannabis business in the City and legally
incident on those engaged in such business. They are not sales or
use taxes and shall not be calculated or assessed as such. Nevertheless,
at the option of the taxpayer, the tax may be separately identified
on invoices, receipts and other evidences of transactions.
(§ 2, Ord. 912, eff. December 13, 2020)
(a)
The voters of the City of Ojai approved this article. Any amendment to this article to increase the taxes above the maximum rate provided in Section 8-1.705 requires further voter approval. The voters authorize the City Council to set the tax rates at or below the maximum rate or rates for differing categories of cannabis businesses, or otherwise to amend, modify, change, or revise any provision of this article as the City Council deems in the best interest of the City. In addition, the City Council may establish exemptions, incentives, or other reductions, and penalties and interest charges or assessments for failure to pay the tax when due, as otherwise allowed by the City Charter, the City's Municipal Code, and California law.
(b)
The
City Manager, in consultation with the City Attorney, may adopt administrative
policies to promulgate rules, regulations, and procedures to implement
and administer this article to ensure the efficient and timely collection
of the taxes imposed by this article, including, without limitation,
formulation and implementation of penalties and interest to be assessed
for failure to pay the taxes as provided. Such policies shall be:
(1) effective upon the date specified in the policy; (2) signed by
the City Manager and City Attorney; and (3) be made publicly available
through the City Clerk.
(c)
The
City Manager shall annually audit the cannabis taxes imposed by this
article to verify that tax revenues have been properly collected and
expended in accordance with the law.
(d)
Pursuant
to California Constitution, Article XIII B, the appropriation limit
for the City is increased to the maximum extent over the maximum period
of time allowed under law consistent with the revenues generated by
the taxes and fee imposed by this article.
(§ 2, Ord. 912, eff. December 13, 2020)
(a)
The
taxes imposed by this article shall be due and payable as follows:
(1)
Each cannabis business owing tax under this article shall provide
a tax return to the City Manager within 30 days following the last
day of the month stating the tax owed for that month, and the basis
of its calculation. The taxpayer shall remit the tax owed to the City
Manager when the return is due whether or not a return is filed as
required.
(2)
All tax returns shall be completed on forms provided by the City
Manager.
(3)
Tax returns and payments for all outstanding taxes, fees, penalties
and interest owed the City are immediately due upon cessation of business
for any reason.
(b)
Whenever
any payment, statement, report, request or other communication is
received by the City Manager after the time prescribed by this section
for its receipt but is in an envelope postmarked on or before the
date prescribed by this section for its receipt, the City Manager
shall regard such payment, statement, report, request, or other communication
as timely. If the due date falls on Saturday, Sunday, or a City holiday,
the due date shall be the last earlier business day on which City
Hall is open to the public.
(c)
Unless otherwise specifically provided by this article, the taxes imposed by this article shall be deemed delinquent if not paid on or before the due date specified in subsection (a) of this section.
(d)
The
City Manager need not send a delinquency or other notice or bill to
any person subject to a tax or fee imposed by this article and failure
to send such notice or bill shall not affect the validity of any tax,
fee, interest or penalty due under this article.
(§ 2, Ord. 912, eff. December 13, 2020)
(a)
Any
person who fails or refuses to pay any tax or fee imposed by this
article when due shall pay penalties and interest as follows:
(1)
A penalty equal to 10% of the tax or fee, in addition to the amount
of the tax; and
(2)
An additional penalty equal to 25% of the amount of the tax or fee
if unpaid for more than a month beyond the due date; and
(3)
Interest charges on the amount of any and all unpaid taxes, fees,
or penalties at the rate of one percent interest per month from the
date due until paid. Interest shall be applied at the rate of one
percent per month on the first day of the month for the full month
and will continue to accrue monthly on the tax and penalty until the
balance is paid in full.
(b)
If
a check is submitted in payment of a tax or fee and is returned unpaid
by the bank upon which drawn, and the check is not redeemed before
the due date, the taxpayer will be liable for the tax or fee due plus
penalties and interest as provided for in this section plus any amount
allowed under State law for the returned check.
(c)
The
tax due shall be that amount due and payable from the latter of: (1)
the effective date of the taxes under this article as determined by
resolution of the City Council; or (2) the first date on which the
cannabis business first operated in the City.
(d)
The
City Manager may waive some or all of the penalties imposed by this
section as to any person if:
(1)
The person provides evidence satisfactory to the City Manager that
failure to pay timely was due to circumstances beyond the control
of the person and occurred notwithstanding the exercise of ordinary
care and the absence of willful neglect, and the person paid the delinquent
tax or fee and accrued interest owed the City upon applying for a
waiver.
(2)
A waiver authorized by this subsection shall not apply to the tax,
fee, or interest and may be granted only once during any 24 month
period.
(§ 2, Ord. 912, eff. December 13, 2020)
(a)
No
refund shall be made of any tax collected pursuant to this article,
except as provided in this section.
(b)
No
refund of any tax collected pursuant to this article shall be made
because of the discontinuation, dissolution, or other termination
of a cannabis business.
(c)
Any
person entitled to a refund of sums paid under this article may elect
to have such refund applied as a credit against future obligations
under this article.
(d)
Whenever
any tax, fee, penalty, or interest under this article has been overpaid,
paid more than once, or has been erroneously or illegally collected
or received by the City, such amount shall be refunded to the person
who paid the tax upon a timely written claim for refund filed with
the City Manager.
(e)
The
City Manager may examine and audit all the books and business records
of the claimant to determine eligibility to the claimed refund. No
claim for refund shall be allowed if the claimant refuses to allow
such examination of the claimant's books and business records.
(f)
A
sum erroneously paid under this article due to an error of the City
shall be refunded to the claimant in full upon a timely claim. If
an error is attributable to the claimant, the City may retain an amount
established by ordinance or resolution of the City Council from time
to time in an amount sufficient to recover the City's cost to process
the claim and refund the balance.
(g)
The
City Manager shall initiate a refund of any sum overpaid or erroneously
collected under this article whenever the overpayment or erroneous
collection is disclosed by a City audit for the period of time unprotected
by the duty to file a timely claim under the Government Claims Act.
(§ 2, Ord. 912, eff. December 13, 2020)
(a)
The
City Manager shall enforce this article.
(b)
The
City Manager may audit and examine all business locations, books and
records of cannabis businesses, including both State and Federal income
tax returns, California sales tax returns, or other evidence documenting
the gross receipts of a cannabis business to ascertain any tax due
under this article and to verify any returns or other information
any person submits to the City under this article. If a cannabis business,
after written demand by the City Manager, refuses to make available
for audit, examination or verification such locations, books, and
records as the City Manager requests, the City Manager may, after
full consideration of all such information as is available make an
assessment of the tax or fee due and demand payment from the tax-or
fee-payer, together with any penalties and interest due for late payment.
(c)
The
conviction and punishment of any person for failure to pay a sum required
under this article shall not excuse or exempt such person from any
civil action for the debt. No civil action shall prevent a criminal
prosecution for any violation of this article or of any State law
requiring the payment of all taxes. No election of remedies shall
apply to the enforcement of this article or any other provision of
this Code and the City may pursue one or more remedies in its discretion
provided only that no double recovery shall be permitted.
(d)
Any person violating any of the provisions of this article or any regulation or rule adopted pursuant to it, or knowingly or intentionally misrepresenting any material fact to the City in procuring a certificate or document from the City under this article, or under Title 4, Chapter 26, shall be deemed guilty of a misdemeanor unless the City Attorney, in his or her discretion, elects to prosecute it as an infraction.
(e)
In addition to the penalty imposed for a failure to timely pay any tax or fee imposed by this article, pursuant to Section 8-1.712, the City Manager shall have the discretion to issue an administrative citation with respect to said failure and impose an administrative fine in the amount of $2,000 for each month that any payment of tax is overdue. Each cannabis business subject to any such administrative citation and fine shall have the opportunity to appeal same pursuant to the process set forth in Title 8 of this Code.
(f)
In the event that any appeal as to an administrative citation and fine pursuant to this Section 8-1.714, or any other action in relation thereto takes place, the City shall be entitled to recover its attorneys' fees and administrative costs incurred unless the appeal in question is granted, or the cannabis business initiating any other action is the prevailing party.
(§ 2, Ord. 912, eff. December 13, 2020)
(a)
If
any person, while liable for any amount under this article, sells,
assigns or otherwise transfers half or more of a taxed cannabis business,
whether voluntarily or involuntarily, the person's successor, assignee
or other transferee, or other person or entity obtaining ownership
or control of the business ("transferee") shall pay that amount when
due. A transferee shall notify the City Manager of a transfer 30 days
before the transfer date; or if the agreement to sell, transfer, or
otherwise dispose of the business is made less than 30 days before
the date of transfer, on the first day the City is open for business
after the transfer.
(b)
A
transferee shall be deemed to have satisfied an unpaid liability if
the transferee complies with the requirements of California Revenue
and Taxation Code Section 7283.5 and this section by withholding from
the purchase price, for the benefit of the City, an amount sufficient
to cover the liability, or by otherwise paying the liability and obtaining
from the City Manager a "Tax Clearance Certificate" showing that all
outstanding liability has been paid through the date of transfer.
(c)
Within 90 days of receiving a written request from a transferee, the City Manager may issue a "Tax Clearance Certificate" stating either the amount due as to the business under this article or stating that there is no liability due for the business through a stated date. The City Manager may also request financial records from the transferor to audit the amount due under this article. The City Manager shall issue a tax clearance certificate within 30 days of completing the audit, stating any amount owed, unless the City Manager determines the records provided for audit are insufficient to determine whether taxes, fees, penalties and/or interest are due and in what amounts. If so, the City Manager may rely on available information to estimate any amount due and shall issue a tax clearance certificate stating that amount. A written application for an appeal hearing on the amount assessed on a tax clearance certificate must be made within 10 days after the City Manager serves or mails the certificate. The appeal provision of Title 8 of this Code shall apply. If a timely application for a hearing is not made, the tax clearance certificate shall serve as conclusive evidence of the liability under this article associated with the business through the date stated on the certificate.
(§ 2, Ord. 912, eff. December 13, 2020)
(a)
The amount of any tax, fee, penalties, and interest imposed by this article shall be deemed a debt to the City and any person operating a cannabis business without first having procured a business license(s) and paid all requisite business license taxes, as provided in this article and Titles 6 and 8 shall be liable in an action in the name of the City in any court of competent jurisdiction for the amount due.
(b)
If no return or statement is timely filed, or if the City Manager is not satisfied that any return or other statement filed under this article is correct, or that the amount due is correctly computed, the City Manager may determine that amount and make a deficiency determination upon available information. The City Manager may make one or more deficiency determinations for a period or periods. When a person discontinues engaging in a taxed business, the City Manager may make a deficiency determination may at any time within three years thereafter as to any liability arising from engaging in such business whether or not a deficiency determination is issued before the date the tax would otherwise be due. Whenever a deficiency determination is made, a notice shall be given to the person concerned as are notices of assessment under subsections (b), (c), and (d) of this section.
(c)
Under
any of the following circumstances, the City Manager may make and
give notice of an assessment of taxes, fees, penalties and interest
owed under this article:
(1)
If the person has not filed any statement or return required by this
article;
(2)
If the person has not paid any tax, fee, penalty or interest due
under this article;
(3)
If the person has not, after demand by the City Manager, filed a
corrected statement or return, or adequate substantiation of the information
contained in a statement or return previously filed, or paid any additional
amount due under this article;
(5)
The notice of assessment shall separately set forth any amount the
City Manager knows or estimates to be due under this article, including
any penalties or interest accrued to the date of the notice.
(6)
A notice of assessment shall be served upon the tax-or fee-payer either by personal service or by a deposit in the United States mail, postage prepaid, addressed to the address appearing on the cannabis business tax registration certificate, City cannabis license issued under Title 4, Chapter 26, or such other address as he or she may provide the City Manager in writing for notices under this article; or, should the person have no business tax certificate issued and no address provided to the City Manager for such purpose, then to such person's last known address. Service by mail is complete upon deposit in the United States mail as provided in this paragraph.
(d)
Within
10 days after service of a notice of assessment, the tax-or fee-payer
may apply in writing to the City Manager for a hearing on the assessment.
If no timely application for a hearing is made, the amount assessed
shall be final and conclusive. Within 30 days of the receipt of an
application for hearing, the City Manager shall cause the matter to
be set for hearing The City Manager shall give notice of such hearing
to the person requesting it not later than five days before the hearing.
At such hearing, the applicant may appear and offer evidence why the
assessment should not be confirmed. After such hearing, the City Manager
shall determine the amount due under this article and shall give written
notice to the person as prescribed in this article for giving notice
of assessment. That decision is final as to the City, but either the
City or the applicant may seek judicial review as provided by California
Code of Civil Procedure Section 1094.5.
(§ 2, Ord. 912, eff. December 13, 2020)
(a)
No
tax imposed by this article shall be applied to occasion an undue
burden upon interstate commerce or violate the equal protection and
due process clauses of the Constitutions of the United States or the
State of California.
(b)
If
any case where a business tax imposed under this article is believed
by a taxpayer to place an undue burden upon interstate commerce or
violate such constitutional clauses, the taxpayer may apply to the
City Manager for an adjustment of the tax. It shall be the taxpayer's
obligation to request in writing for an adjustment within one year
after the date of payment of the tax. If the taxpayer does not request
in writing within one year from the date of payment, then the taxpayer
shall be conclusively deemed to have waived any adjustment for that
year and all prior years.
(c)
The
taxpayer shall, by sworn statement and supporting testimony, show
the method of business and the gross volume of business and such other
information as the City Manager may deem necessary to determine the
extent, if any, of such undue burden or violation. The City Manager
shall then conduct an investigation and shall fix as the tax for the
taxpayer an amount that is reasonable and nondiscriminatory, or if
the tax has already been paid, shall order a refund of the amount
over and above the tax so fixed. In fixing the tax to be charged,
the City Manager shall have the power to base the tax upon a percentage
of gross receipts or any other measure which will assure that the
tax assessed shall be uniform with that assessed on businesses of
like nature, so long as the amount assessed does not exceed the tax
as prescribed by this article.
(d)
Should
the City Manager determine the gross receipt measure of tax to be
the proper basis, the City Manager may require the taxpayer to submit
a sworn statement of the gross receipts and pay the amount of tax
as determined by the City Manager.
(§ 2, Ord. 912, eff. December 13, 2020)
