This article shall be referenced as the "South Lake Tahoe cannabis business and professions tax."
(Ord. 1164 § 1)
This article is adopted for the following purposes and shall be interpreted to accomplish them:
A.
To impose a tax on the privilege of conducting cannabis business in the city, under the state Medicinal and Adult-Use Cannabis Regulation and Safety Act, California Business and Professions Code Section 26000, Proposition 64, approved by the voters in November 2016 and as amended to date ("MAUCRSA"), which legalized and regulates adult use of cannabis in California, and other applicable law as it now exists or may hereafter be adopted;
B.
To impose a general tax to generate revenues which may be used in the discretion of the city council for any lawful purpose of the city;
C.
To specify the type of tax and rate of tax to be levied and the method of collection; and
D.
To comply with all requirements for imposition of a general tax.
This article is enacted solely to raise revenue, not for regulation. It shall apply to all persons engaged in cannabis business in the city. The tax imposed by this article is a general tax under Article XIII C of the California Constitution.
(Ord. 1164 § 1)
For the purposes of this article, the following words shall have the meanings ascribed to them by this section unless the context makes apparent another meaning was intended:
has the meaning stated in SLTCC § 6.55.710.
means the activity of any natural or legal person, business, or collective in the city relating to cannabis, including but not limited to cultivation (including nurseries), transportation, distribution, manufacture, compounding, conversion, processing, preparation, testing, storage, packaging, delivery and sales (including both wholesale and retail sales) of cannabis, cannabis products, or cannabis accessories, whether or not carried on for gain or profit, whether for medical or adult use, and whether or not such business is licensed by the state. A cannabis business does not include any business the only relationship of which to cannabis or cannabis products is the production or sale of cannabis accessories.
has the meaning stated in SLTCC § 6.55.710.
has the meaning stated in SLTCC § 6.55.710. The city manager may, but is not required to, determine canopy from the area described in a cultivation license issued by the city whether or not the licensee actually cultivates that entire area.
means the city manager or designee.
means the city manager or a person charged by the city manager to administer this article.
means cultivation conducted by, for, or as part of a cannabis business. Commercial cannabis cultivation does not include personal medical cannabis cultivation, or cultivation for personal adult use as authorized by the MAUCRSA, including Health and Safety Code Section 11362.1 et seq., for which the individual receives no compensation whatsoever.
has the meaning stated in SLTCC § 6.55.710.
has the meaning stated in SLTCC § 6.55.710.
has the meaning stated in SLTCC § 6.55.710.
except as otherwise specifically provided in this article or by regulation authorized by this article, has the meaning stated in SLTCC § 3.00.010.
has the meaning stated in SLTCC § 6.55.710.
means any individual, firm, partnership, corporation, company, association, joint stock association; city, county, state, or district; and includes any trustee, receiver, assignee, or other similar representative thereof.
has the meaning stated in SLTCC § 6.55.710.
(Ord. 1164 § 1)
A.
There is hereby imposed on every person who engages in cannabis business in the city an annual cannabis business and professions tax in the amounts stated in this section or such lesser amounts as the city council may from time to time establish by resolution.
B.
SLTCC § 3.35.280 notwithstanding, the initial rate of the cannabis business and professions tax shall be as follows:
1.
For every cannabis business engaged in commercial cannabis cultivation in the city:
a.
Twenty dollars annually per square foot of canopy.
2.
For every cannabis business that engages in any other cannabis business in the city whether or not that cannabis business is lawful under this code or other law:
a.
Six percent of gross receipts annually.
Should a city cannabis use permit be issued to a business which cultivates only for certain months of the year, the collector shall prorate the tax as to sufficiently reflect the time in which cultivation occurs. In no case shall any portion of the canopy authorized by a city cannabis use permit but not used for cultivation be deducted from the tax base unless the taxpayer informs the collector in writing before the canopy or portion thereof is disused and the collector provides written evidence of relief from tax.
C.
The city council may, by resolution, implement a tax rate lower than the maximum rate established in subsection (B) of this section for all persons engaged in cannabis business, or establish differing tax rates for different categories of cannabis business. The city council may, by resolution, decrease or increase such tax rates without further voter approval provided the tax rate is not above the maximum tax rate established in subsection (B) of this section.
(Ord. 1164 § 1)
Each person subject to a tax under this article shall pay that tax regardless of any rebate, exemption, incentive, or other reduction elsewhere in this code, except as required by state or federal law. Failure to pay such a tax shall be subject to penalties, fines and interest charges established under SLTCC § 3.35.200, and the city may resort to any or all other remedies available at law or in equity to enforce this article. No provision of this article shall be interpreted to reduce a tax rate established under this article or otherwise reduce the taxes paid hereunder unless the provision specifically requires that reduction.
(Ord. 1164 § 1)
The payment of a tax imposed under this article does not 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. Nothing in this article is intended to authorize commercial cannabis activity.
(Ord. 1164 § 1)
The tax imposed by this article is upon the privilege of doing business in the city. It is not a sales or use tax.
(Ord. 1164 § 1)
The tax imposed by this article shall be due and payable as follows:
A.
Each person owing tax under this article shall provide a tax return to the city manager on or before the last business day of each month stating the tax owed for the preceding month and the basis of its calculation. The taxpayer shall remit the tax owed to the city manager when the return is due.
B.
The city manager may establish a form for tax returns submitted under this section and, if so, use of that form shall be mandatory.
C.
Tax returns and payments for all outstanding taxes, penalties and interest owed the city are immediately due upon cessation of business for any reason.
D.
Postmarks are not accepted and payments, statements, reports, requests, or other communications must be physically in the office of the collector when due. If the due date falls on a day when city offices are not open for business, the due date shall be the next following business day.
E.
Unless otherwise provided by this article, the tax imposed by this article is delinquent if not paid by the due date specified in subsection (A) of this section.
F.
The city manager need not send a bill or delinquency or other notice to any person subject to a tax imposed by this article and failure to send such bill or notice shall not affect the validity of any tax, interest or penalty due under this article.
(Ord. 1164 § 1)
The city manager shall arrange for an annual independent audit of the receipts and expenditures of the taxes imposed by this article. He or she shall share that audit report with the city council and make it available for public inspection.
(Ord. 1164 § 1)
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.
If a tax, penalty, or interest imposed 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 it upon a written claim for refund filed with the collector within one year of the payment sought to be refunded, and all such claims for refund of the amount of overpayment must be filed with the collector on forms furnished by the collector.
D.
Any person entitled to a refund of sums paid under this article may ask the city to apply it as a credit against future obligations under this article.
E.
The collector may examine and audit all the books and business records of a refund claimant to determine entitlement 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.
(Ord. 1164 § 1)
A.
It shall be the duty of the city manager to collect the taxes, penalties, and interests, and perform the duties this article requires.
B.
The city manager may from time to time promulgate such administrative rules and procedures consistent with the purpose, intent, and terms of this article as the city manager deems necessary to implement or clarify it or to aid in its enforcement. The city manager shall give notice of those regulations as required for ordinances of the city council and such regulations shall take effect upon such notice unless a particular regulation provides otherwise.
C.
The city manager may take such administrative actions as needed to administer the tax, including but not limited to:
1.
Provide information about this article to any taxpayer;
2.
Receive and record all taxes remitted to the city under this article;
3.
Maintain records of taxpayer reports and taxes collected under this article;
4.
Assess penalties, fines and interest charges to taxpayers under this article;
5.
Determine amounts owed and enforce collection under this article; and
6.
Take such other reasonable steps as he or she deems appropriate to enforce this article.
(Ord. 1164 § 1)
Any person aggrieved by any decision of the city manager or collector under this article may appeal to the city council pursuant to the procedures described in Chapter 2.35 SLTCC.
(Ord. 1164 § 1)
A.
The tax imposed under this article is intended to be applied consistently with the United States and California Constitutions and applicable law. The tax shall not be applied to cause an undue burden upon interstate or inter-city commerce, a violation of the equal protection or due process clauses of those Constitutions, to constitute a special tax, or to violate any other provision of applicable law.
(Ord. 1164 § 1)