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 of the City or resolution of the City Council, 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 of the City or resolution of the City Council. Any references made or contained in any other title or chapter of this code to any licenses, license taxes, fees or charges, or to any schedule of license fees, shall be deemed to refer to the licenses, license taxes, fees or charges, or schedule of license fees provided for in other titles or chapters of this code.
(Ord. 354 § 2, 2017)
(1) 
There are imposed upon all persons engaged in a business involving commercial cannabis activity in the City taxes in the amounts prescribed in this chapter and Chapter 5.05 RDMC. It shall be unlawful for any person, either for himself or herself or for any other person, to commence, transact or carry on any commercial cannabis activity in the City without first having procured a business license from the City under Chapter 5.05 RDMC and having paid the tax set forth therein, and without complying with any and all provisions contained in this chapter. The carrying on of any commercial cannabis activity without complying with any and all provisions of this chapter and Chapter 5.05 RDMC shall constitute a separate violation of this chapter and Chapter 5.05 RDMC for each and every day that such activity is so carried on.
(2) 
The business license required to be obtained under Chapter 5.05 RDMC and the taxes required to be paid under this chapter and Chapter 5.05 RDMC are declared to be required pursuant to the taxing power of the City solely for the purpose of obtaining revenue and are not regulatory permit fees.
(Ord. 354 § 2, 2017)
(1) 
The payment of a business license tax required by this chapter, and its acceptance by the City, shall not entitle any person to carry on any commercial cannabis activity unless the person has complied with all of the requirements of this code and all other applicable laws, nor to carry on any such activity 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 commercial cannabis activity is in violation of any law.
(2) 
No 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. 354 § 2, 2017)
Every person required to have a business license under the provisions of Chapter 5.05 RDMC shall make application for the same, or for renewal of the same, to the Director. Such application shall be a written statement upon a form or forms provided by the Director and shall be signed by the applicant under penalty of perjury. The application shall set forth such information as may be required and as may be reasonably necessary to properly determine the amount of the tax to be paid by the applicant under Chapter 5.05 RDMC, together with such other information as is required by the Director to enable the Director to administer the provisions of this chapter.
(Ord. 354 § 2, 2017)
The tax imposed under this chapter shall be paid to the Director in lawful money of the United States, at the office of the Director, or any other location designated by the Director. Lawful money shall mean any coin, currency or negotiable instrument, exchangeable for said coin or currency, which the United States Congress has declared to be a national legal tender.
(Ord. 354 § 2, 2017)
(1) 
Tax Rate for Commercial Cannabis Cultivation Activity.
(a) 
In addition to the business tax imposed under Chapter 5.05 RDMC and the requirements set forth therein, every person engaged in business involving commercial cannabis cultivation activity in the City shall pay a business tax at a rate of up to $2.00 per square foot or at a rate of up to two percent of gross receipts, as set and determined by the Council, in its discretion, by ordinance.
(b) 
Notwithstanding anything in this chapter to the contrary, the City Council shall not increase the applicable maximum tax rate set forth in subsection (1)(a) of this section for persons engaged in business involving commercial cannabis cultivation activity without submitting the proposed increase to the voters. Notwithstanding the maximum tax rate imposed under subsection (1)(a) of this section, the City Council may, in its discretion, at any time by ordinance, implement a lower tax rate for commercial cannabis cultivation activity or establish differing tax rates for different categories, including permit or license types, of commercial cannabis cultivation activity subject to the maximum rate.
(c) 
The initial tax rates imposed upon persons engaged in business involving commercial cannabis cultivation activity shall be as follows:
(i) 
Two dollars per square foot for persons issued a permit or license, other than a permit or license to operate a nursery, to engage in greenhouse, mixed-light, and/or indoor cultivation of cannabis within the City of Rio Dell.
(ii) 
Two percent of gross receipts for persons issued a permit or license to operate a nursery within the City of Rio Dell.
(2) 
Tax Rate for Other Commercial Cannabis Activity.
(a) 
In addition to the business tax imposed under Chapter 5.05 RDMC and the requirements set forth therein, every person engaged in business involving other commercial cannabis activity in the City shall pay a business tax at a rate of up to two percent of gross receipts, as set and determined by the Council, in its discretion, by ordinance.
(b) 
Notwithstanding anything in this chapter to the contrary, the City Council shall not increase the applicable maximum tax rate set forth in subsection (2)(a) of this section for persons engaged in business involving other commercial cannabis activity without submitting the proposed increase to the voters. Notwithstanding the maximum tax rate imposed under subsection (2)(a) of this section, the City Council may, in its discretion, at any time by ordinance, implement a lower tax rate for other commercial cannabis activity or establish differing tax rates for different categories, including permit or license types, of commercial cannabis activity subject to the maximum rate.
(c) 
The initial tax rate imposed upon persons engaged in business involving other commercial cannabis activity shall be two percent of gross receipts.
(Ord. 354 § 2, 2017; Ord. 373 §§ 2, 3, 2019)
(1) 
Surety Bond for Cultivation Activity.
(a) 
The City at its sole discretion may require a guaranty for the payment of cultivation taxes, based on the annual cultivation declaration.
(b) 
Guarantee Required. To ensure that persons engaged in business involving commercial cannabis cultivation activity timely remit taxes levied by this chapter, such person shall provide a guarantee by one or more of the methods specified in this section in the amount of $2.00 per square foot of cultivation as identified in the annual cultivation declaration. The requirement for a guarantee shall remain in force at the sole discretion of the City.
(c) 
Persons to Provide Guarantee. The guarantee required under this section shall be provided before March 1st of each year by persons engaged in business involving commercial cannabis cultivation activity or by a personal guarantee from an owner(s), partner(s), member(s), officer(s), director(s), or responsible party(ies) of the cultivator, or any combination thereof.
(d) 
Methods. Persons engaged in business involving commercial cannabis cultivation activity shall provide one or more of the following methods to guarantee the performance of their obligations under this chapter.
(i) 
Surety Bond. Persons engaged in business involving commercial cannabis cultivation activity may elect to provide a surety bond, as defined by Section 995.120 of the Code of Civil Procedure, in an amount defined in subsection (1)(b) of this section, from a company authorized to do such business in the state. The bond shall be in a form acceptable to the City Attorney. The bond shall be payable to the City and shall be conditioned upon payment in full of the tax, including penalties and interest due, and to become due and owing to the City by said person engaged in business involving commercial cannabis cultivation activity during the effective period of the bond under the provisions of this chapter. The surety may terminate this bond, except as to any liability already incurred or accrued, and may do so upon giving the cultivator and the Finance Director written notice to that effect. The surety shall provide written notice to the Finance Director not less than 30 days before the expiration, nonrenewal, lapse, termination, or other similar event affecting such surety bond. Thirty days after receipt by the Finance Director of such notice or upon a later date specified in the notice, or upon the filing and acceptance of a new bond, the existing bond shall terminate and be of no more force and effect, except as to any liabilities or indebtedness incurred or accrued thereunder as of the date of termination.
(ii) 
Deposit in Escrow. The persons engaged in business involving commercial cannabis cultivation activity may elect to deposit a cash sum, in an amount defined in subsection (1)(b) of this section, either with the City or in escrow with a responsible financial institution authorized to do such business in the State. In the case of an escrow account, the cultivator shall file with the City an escrow agreement, which includes the following terms:
Funds of the escrow account shall be held in trust until released by the City and may not be used or pledged by the person engaged in business involving commercial cannabis cultivation activity as security in any matter during that period other than payment of the tax, penalties, and interest due and to become due and owing to the City under this chapter; and
In the case of a failure on the part of the person engaged in business involving commercial cannabis cultivation activity to remit taxes due under this chapter by the required due date, the institution shall immediately make all funds in such account available to the City for use in satisfying those taxes due, along with any related penalties and interest as provided for in this chapter.
(iii) 
Letter of Credit. The person engaged in business involving commercial cannabis cultivation activity may elect to provide, from a bank or other responsible financial institution authorized to do such business in the State, a letter of credit in a form acceptable to the City Attorney. Such letter shall be filed with the City and shall certify the following:
(A) 
The financial institution irrevocably guarantees funds in an amount defined in subsection (1)(b) of this section; and
(B) 
In the case of failure on the part of the person engaged in business involving commercial cannabis cultivation activity to remit taxes due under this chapter by the required due date, the financial institution shall pay to the City immediately and without further action such funds as are necessary to satisfy those taxes due, along with any related penalties and interest as provided for in this chapter, up to the limit of credit stated in the letter.
(2) 
Request for Waiver of Guarantee. A person engaged in business involving commercial cannabis cultivation activity may request a waiver of the requirement to provide a guarantee or a reduction of the amount of the guarantee to the City Manager. The request should include a detailed statement, along with documentation, supporting the request. In considering the request, the City Manager may consider all relevant information, including, without limitation, the person's current and prior performance with this chapter. The decision of the City Manager shall be considered final.
(Ord. 404 § 1, 2024)
The business tax imposed by this chapter shall be due and payable as follows:
(1) 
Each person engaged in business involving commercial cannabis activity, other than outdoor, greenhouse or Tier 1 cannabis cultivation, as defined in subsection (2) of this section, shall, on or before the last day of the month following the close of each fiscal year quarter, prepare and submit a tax statement on the form prescribed by the Director and remit to the Director the tax due. The tax due shall be no less than the quarterly installment due. Each person shall pay on or before the last day of the month following the close of each calendar quarter.
(2) 
Each person engaged in outdoor, greenhouse or Tier 1 cannabis cultivation shall on or before March 15th of each year prepare and submit a tax statement to the City on the form prescribed by the Director and remit to the Director the tax due for cannabis cultivated during the growing season for the immediately preceding calendar year. "Outdoor cultivation" is defined as cannabis cultivation outside without using any artificial lighting on mature plants. "Greenhouse cultivation" is defined as cannabis cultivation within greenhouses without using any artificial lighting. "Tier 1 cannabis cultivation" is defined as cannabis cultivation without the use of artificial light or the use of artificial light at a rate above zero, but no more than six watts per square foot.
(3) 
If the business tax owed is based on square foot, as defined in RDMC § 5.40.100, the tax statement may include a request for adjustment of the tax due to square foot authorized but not utilized for cultivation, and/or crop loss, along with evidence substantiating the square footage utilized and/or crop loss. The decision to prorate or adjust the tax will be made at the sole discretion of the City. A fee may be adopted by the City Council and collected by the Director to pay for the cost of investigating, verifying, and opining on such request for adjustment of the tax.
(4) 
All tax statements shall be completed on forms prescribed by the Director.
(5) 
Tax statements and payments for all outstanding taxes owed the City are immediately due to the Director upon cessation of business for any reason.
(Formerly 5.40.260; Ord. 354 § 2, 2017; Ord. 397 § 1, 2023; Ord. 404 § 2, 2024)
Unless otherwise specifically provided under other provisions of this chapter, 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 RDMC § 5.40.260.
(Formerly 5.40.270; Ord. 354 § 2, 2017; Ord. 404 § 2, 2024)
The Director 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 tax or penalty due under the provisions of this chapter.
(Formerly 5.40.280; Ord. 354 § 2, 2017; Ord. 404 § 2, 2024)
(1) 
Any person who fails or refuses to pay any business tax required to be paid pursuant to this chapter on or before the due date shall pay penalties and interest as follows:
(a) 
Original Delinquency. A penalty equal to 25 percent of the amount of the tax in addition to the amount of the tax, plus interest on the unpaid tax calculated from the due date of the tax at the rate of one percent per month or fraction thereof on the amount of the tax, exclusive of penalties, from the date on which the remittance first became delinquent until paid; and
(b) 
Continued Delinquency. An additional penalty equal to 25 percent of the amount of the tax if the tax remains unpaid for a period exceeding one calendar month beyond the due date, plus interest on the unpaid tax calculated at the rate of one percent per month or fraction thereof on the amount of the tax, exclusive of penalties, from the date on which the remittance first became delinquent until paid.
(c) 
Revocation of Permit. The City may, in the City's sole discretion, revoke the permit for any person who fails or refuses to pay any business tax required to be paid pursuant to this chapter on or before the due date.
(2) 
Whenever a check is submitted in payment of a business tax and the check is subsequently returned unpaid by the bank upon which the check is drawn, and the check is not redeemed prior to the due date, the taxpayer will be liable for the tax amount due plus penalties and interest as provided for in this section plus any amount allowed under State law.
(3) 
The business tax due shall be that amount due and payable from the first date on which the person was engaged in business involving commercial cannabis activity in the City, together with applicable penalties and interest calculated in accordance with subsection (1) of this section.
(Formerly 5.40.290; Ord. 354 § 2, 2017; Ord. 397 § 1, 2023; Ord. 404 § 2, 2024)
The Director may waive the first and second penalties of 25 percent each imposed upon any person if:
(1) 
The person provides evidence satisfactory to the Director 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 business tax and accrued interest owed the City prior to applying to the Director for a waiver.
(2) 
The waiver provisions specified in this subsection shall not apply to interest accrued on the delinquent tax and a waiver shall be granted only once during any 24-month period.
(Formerly 5.40.300; Ord. 354 § 2, 2017; Ord. 404 § 2, 2024)
(1) 
No refund shall be made of any tax collected pursuant to this chapter except as provided in RDMC § 5.40.320.
(2) 
No refund of any tax collected pursuant to this chapter shall be made because of the discontinuation, dissolution or other termination of a business.
(3) 
Any person entitled to a refund of taxes paid pursuant to this chapter may elect in writing to have such refund applied as a credit against such person's business taxes for the next calendar month.
(Formerly 5.40.310; Ord. 354 § 2, 2017; Ord. 404 § 2, 2024)
(1) 
Whenever the amount of any 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 claimant who paid the tax; provided, that a written claim for refund shall be presented to the Director within one year of the date of payment, and in the manner prescribed by Part 3 of Division 3.6 of Title 1 of the California Government Code (commencing with Section 900 thereof) for the claims to which that part applies by its own terms, as those provisions now exist or shall hereafter be amended, and as further provided by this section.
(2) 
All claims shall be made in writing and verified under the penalty of perjury by the claimant or by his or her guardian, conservator, executor or administrator. All tax refund claims shall be filed on the refund claim form prescribed by the Director. In the event that the Director has not prescribed a form of claim, the tax refund claim shall contain:
(a) 
The information required by California Government Code Section 910; and
(b) 
The specific amount claimed to have been overpaid, paid more than once, or erroneously or illegally collected or received by the City; and
(c) 
The grounds upon which the claim is founded, with specificity sufficient to enable the Director and other responsible City officials to understand and evaluate the claim; and
(d) 
Documentation supporting the amount of the refund sought.
The foregoing reference to Government Code Section 910 shall not be construed to authorize a class claim, and no claim may be filed on behalf of a class of persons unless verified by every member of that class.
(3) 
The Director or the Director's authorized agent 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 therefor refuses to allow such examination of claimant's books and business records after request by the Director to do so.
(4) 
In the event that the business tax was erroneously paid and the error is attributable to the City, the entire amount of the tax erroneously paid shall be refunded to the claimant. If the error is attributable to the claimant, the City shall retain an administrative fee as set forth in a resolution of the City Council from the amount to be refunded to cover the City's expenses.
(5) 
The Director shall initiate a refund of any business tax which has been overpaid or erroneously collected whenever the overpayment or erroneous collection is uncovered by a City audit of business tax receipts. In the event that the business tax was erroneously paid and the error is attributable to the City, the entire amount of the tax erroneously paid shall be refunded to the claimant. If the error is attributable to the claimant, the City shall retain an administrative fee as set forth in a resolution of the City Council from the amount to be refunded to cover the City's expenses.
(6) 
In accordance with California Government Code Sections 935(b) and 945.6, all claims shall be presented as provided in this section and acted upon by the City prior to the filing of any action on such claims and no such action may be maintained by a person who has not complied with the requirements of this section.
(7) 
Any action brought against the City upon any claim or demand shall conform to the requirements of Sections 940 through 949 of the California Government Code. Any action brought against any employee of the City shall conform with the requirements of Sections 950 through 951 of the California Government Code.
(Formerly 5.40.320; Ord. 354 § 2, 2017; Ord. 404 § 2, 2024)