This chapter shall be known as the "marijuana business tax" and is enacted solely to raise revenue for municipal purposes and is not intended for regulation. All of the proceeds from the marijuana business tax imposed by this chapter shall be placed in the city's general fund and used for the usual current expenses of the city.
(Ord. 16-1423 § 2, 2016)
"Business"
means professions, trades and occupations and every kind of calling whether or not carried on for profit.
"Gross receipts"
means the total of amounts actually received or receivable from sales and the total amounts actually received or receivable for the performance of any act or service for which a charge is made 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. Included in gross receipts shall be all receipts, cash, credits and property of any kind without deduction of the cost of the property sold, the cost of the materials used, labor or service costs, interest paid or payable, or losses or other expenses whatsoever. Excluded from "gross receipts" are the following:
1. 
Cash discounts allowed and taken on sales;
2. 
Credit allowed on property accepted as part of the purchase price and which property may later be sold;
3. 
Any tax required by law to be included in or added to the purchase price and collected from the consumer or purchaser;
4. 
Such part of the sale price of property returned by purchasers upon rescission of the contract of sale as is refunded either in cash or by credit;
5. 
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 furnishes the director of finance with the names and addresses of the others and the amounts paid to them;
6. 
Receipts of refundable deposits, except that refundable deposits forfeited and taken into income of the business are not excluded.
Gross receipts subject to the marijuana business tax shall be that portion of gross receipts relating to business conducted within the city.
"Marijuana"
means all parts of the plant Cannabis sativa L., whether growing or not; the seeds thereof; the resin extracted from any part of the plant; and every compound, manufacture, oil, salt, derivative, mixture, or preparation of the plant, its seeds or resin, including food products containing cannabis.
"Marijuana business"
means any business or activity including, but not limited to, cultivating, delivering, dispensing, distributing, exchanging, manufacturing, planting, selling or testing either medical or nonmedical marijuana, or medical or nonmedical marijuana products, except that the cultivation of marijuana for personal use shall not be marijuana business as long as such marijuana is not sold, bartered or exchanged for any consideration.
"Marijuana business tax"
means the tax due for engaging in marijuana business in the city.
"Medical marijuana"
means marijuana used for medical purposes in accordance with 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.), as sections may be amended from time to time.
"Nonmedical marijuana"
means marijuana used in strict compliance with any state and local law pertaining to marijuana that is not medical marijuana.
"Operator"
shall mean any person conducting, operating, or maintaining in whole or in part as principal, agent, officer, employee or independent contractor any marijuana business as defined in this chapter, taxable under this chapter.
"Person"
means, without limitation, any natural individual, organization, firm, trust, common law trust, estate, partnership of any kind, association, syndicate, club, joint stock company, joint venture, limited liability company, corporation (including foreign, domestic, and nonprofit), cooperative, receiver, trustee, guardian, or other representative appointed by order of any court.
"Sale"
includes the transfer, in any manner or by any means whatsoever, of title to property for a consideration; the serving, supplying or furnishing for a consideration of any property; and a transaction whereby the possession of property is transferred and the seller retains the title as security, for the payment of the price shall likewise be considered a sale. The foregoing definitions do not exclude any transaction which is or which, in effect, results in a sale within the contemplation of law.
"Tax administrator"
means the tax and license collector of the city.
(Ord. 16-1423 § 2, 2016)
A. 
Every person engaged in marijuana business in the city shall pay a marijuana business tax at a rate of up to 10 percent of gross receipts.
B. 
The marijuana business tax under this chapter shall not be imposed on marijuana businesses unless and until the city council, by resolution, takes action to set a tax rate not to exceed 10 percent of gross receipts.
C. 
At any time, the city council may, by resolution, implement a lower tax rate for all marijuana businesses or may establish differing tax rates for different categories of marijuana businesses, as long as the such tax rate does not exceed the maximum rate of 10 percent of gross receipts.
D. 
No action by the city council under this subsection shall prevent the city council from increasing any such tax rate from time to time, subject to the maximum tax rate of 10 percent of gross receipts.
(Ord. 16-1423 § 2, 2016)
Each person owing a marijuana business tax under this chapter shall, on or before the last day of each calendar month, prepare a report of the total gross receipts and the amount of marijuana business tax owed for the preceding calendar month. All tax reports shall be prepared on forms provided by the tax administrator. At the time the marijuana business tax report is filed, the full amount of the marijuana business tax owed for the preceding calendar month shall be remitted to the tax administrator.
(Ord. 16-1423 § 2, 2016)
The taxes required to be paid pursuant to this chapter shall be deemed delinquent if not paid on or before the due date specified in PMC § 3.10.040. Any person who fails to remit any marijuana business tax imposed by this chapter within the time required shall pay a penalty of 10 percent of the amount of the marijuana business tax in addition to the amount of the marijuana business tax. The tax administrator shall add an additional penalty of 10 percent of the marijuana business tax due on the last day of each month thereafter that the marijuana business tax and penalties remain unpaid.
(Ord. 16-1423 § 2, 2016)
In addition to any penalties imposed, any person who fails to remit any marijuana business tax imposed by this chapter shall pay interest at the rate of one percent per month or fraction thereof on the amount of the marijuana business tax, exclusive of penalties, from the day such marijuana business tax is due pursuant to PMC § 3.10.040 until the date of payment.
(Ord. 16-1423 § 2, 2016)
The city is not required to send a delinquency or other notice or bill to any person subject to the provisions of this chapter, and failure to send such notice or bill shall not affect the validity of any marijuana business tax, interest or penalty due under the provisions of this chapter.
(Ord. 16-1423 § 2, 2016)
A. 
If any operator fails or refuses to collect the marijuana business tax and to make, within the time provided in this chapter, any report and remittance of the marijuana business tax or any portion thereof required by this chapter, the tax administrator shall proceed in such a manner as he or she may deem appropriate to obtain facts and information on which to base his or her estimate of the marijuana business tax due. As soon as the tax administrator procures such facts and information upon which to base the assessment of any marijuana business tax imposed by this chapter, the tax administrator shall proceed to determine and assess against such operator the marijuana business tax, interest and penalties provided for by this chapter.
B. 
The tax administrator shall give a notice of the amount of marijuana business tax assessed by serving it personally or by depositing it in the United States mail, postage prepaid, addressed to the person so assessed at his or her last known place of address. Such person may, within 15 days after the serving or mailing of such notice, apply to the tax administrator in writing for a hearing on the amount assessed. If no such request is made within the time prescribed, the marijuana business tax, interest and penalties, if any, as determined by the tax administrator shall become final and conclusive and immediately due and payable. If such request is made, the tax administrator shall give not less than five days' written notice in the manner prescribed herein to the operator to show cause at a time and place fixed in the notice why the amount specified therein should not be fixed for such marijuana business tax, interest and penalties. At such hearing, the operator may appear and offer evidence why such specified marijuana business tax, interest and penalties should not be so fixed. After such hearing, the tax administrator shall determine the proper marijuana business tax to be remitted and shall thereafter give written notice to the person in the manner prescribed herein of such determination and the amount of such marijuana business tax, interest and penalties. The amount determined to be due shall be payable after 15 days unless an appeal is taken as provided in this chapter.
(Ord. 16-1423 § 2, 2016)
If the tax administrator is not satisfied that any report filed pursuant to this chapter is correct, the tax administrator may compute and determine the amount of marijuana business tax to be paid and make a deficiency determination upon the basis of the facts contained in the report or upon the basis of any information in the tax administrator's possession or that may come into his or her possession within three years of the date the marijuana business tax was originally due and payable. One or more deficiency determinations of the amount of marijuana business tax due for a period or periods may be made. When a person discontinues engaging in a business, a deficiency determination may be made 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 prior to the date the marijuana business tax would otherwise be due. Whenever a deficiency determination is made, a notice shall be given to the person concerned in the same manner as notices of assessment are given under PMC § 3.10.080.
(Ord. 16-1423 § 2, 2016)
Any person aggrieved by any decision of the tax administrator with respect to the amount of such marijuana business tax or penalties, if any, may appeal to the city council by filing a notice of appeal with the city clerk within 15 days of the serving or mailing of the determination of marijuana business tax due. The council shall fix a time and place for hearing such appeal and the city clerk shall give notice in writing to such operator at his last known place of address. The findings of the council shall be final and conclusive and shall be served upon the appellant in the manner prescribed above for service of notice of hearing. Any amount found to be due shall be immediately due and payable upon the service of notice.
(Ord. 16-1423 § 2, 2016)
It shall be the duty of every operator liable for the collection and payment to the city of any marijuana business tax imposed by this chapter to keep and preserve, for a period of three years, all records that may be necessary to determine the amount of such marijuana business tax. The tax administrator shall have the right to inspect such records at all reasonable times.
(Ord. 16-1423 § 2, 2016)
A. 
Whenever the amount of any marijuana business tax, penalty or interest has been overpaid, paid more than once, or has been erroneously or illegally collected or received by the city under this chapter, it may be refunded to the operator who paid the marijuana business tax; provided, that a written claim for refund is filed with the tax administrator within one year of the date the marijuana business tax was originally due and payable.
B. 
The tax administrator shall have the right to examine and audit all the books and business records of the claimant in order to determine the eligibility of the claimant to the claimed refund. No claim for refund shall be allowed if the claimant refuses to allow such examination of claimant's books and business records after request by the administrator to do so.
C. 
In the event that the marijuana business tax was erroneously paid and the error is attributable to the city, the entire amount of the marijuana business tax erroneously paid shall be refunded to the operator. If the error is attributable to the operator, the city shall retain an amount from the refund reasonably calculated to cover expenses in verifying the error.
(Ord. 16-1423 § 2, 2016)
The amount of any marijuana business tax, penalties and interest imposed by the provisions of this chapter shall be deemed a debt to the city, and any person or operator carrying on any business without having paid the marijuana business tax under this chapter to the city shall be liable to an action in the name of the city in any court of competent jurisdiction for the amount of the marijuana business tax, and penalties and interest imposed on such business.
(Ord. 16-1423 § 2, 2016)
Except as may be otherwise specifically provided in this chapter, the terms hereof shall not be deemed or construed to apply to any person when imposition of the marijuana business tax upon that person would violate the Constitution of the United States or that of the state of California or preemptive federal or state law.
(Ord. 16-1423 § 2, 2016)
Nothing contained in this chapter shall be deemed to repeal, amend, be in lieu of, replace or in any way affect any requirements for any license or permit required by, under or by virtue of any provision of any other title or chapter of this code or any other ordinance or resolution of the city or state, nor be deemed to repeal, amend, be in lieu of, replace or in any way affect any tax, fee or other charge imposed, assessed or required by, under or by virtue of any other title or chapter of this code or any other ordinance or resolution of the city or state.
(Ord. 16-1423 § 2, 2016)
A. 
The payment of a marijuana business tax required by this chapter, and its acceptance by the city, shall not entitle any person to carry on any marijuana business unless the person has complied with all of the requirements of this code and all other applicable laws, nor to carry on any marijuana business in any building or on any premises in the event that such building or premises are situated in a zone or locality in which the conduct of such marijuana business is in violation of any law.
B. 
No marijuana business tax paid under the provisions of this chapter shall be construed as authorizing the conduct or continuance of any illegal or unlawful business, or any business in violation of any ordinance of the city.
(Ord. 16-1423 § 2, 2016)
Any person violating any of the provisions of this chapter, or any regulation or rule passed in accordance herewith, shall be deemed guilty of a misdemeanor, and upon conviction thereof shall be punishable by a fine of not more than $500.00 or by imprisonment for a period of not more than six months, or by both such fine and imprisonment.
(Ord. 16-1423 § 2, 2016)