City Council
MEETING DATE: 8/26/2015
TITLE:
Title
Resolution- Establishing Cannabis, Marijuana Collective or Dispensary Tax Rate, Penalties & Related Audit Requirements
End
FROM:
Tami Scott, Administrative Services Director
RECOMMENDATION:
Recommendation
Staff recommends the City Council consider a cannabis and marijuana tax of ten (10) cents for every dollar of proceeds collected, along with the establishment of penalties and interest charges for payment delinquencies and appropriate audit and financial review requirements to ensure timely and full payment of all taxes required under the ordinance and this resolution.
Body
BACKGROUND:
The voters of the Cathedral City approved Measure N at the November 4, 2014 general municipal election. Measure N is an ordinance that added Chapter 9.108 to the Cathedral City Municipal Code (the "Ordinance"). The ordinance authorizes the City to impose a tax on the proceeds of cannabis and marijuana collectives as defined in the Ordinance in the amount of fifteen cents (15) for every dollar of proceeds. The Ordinance provides the Council with the authority to set the tax at a rate that is less than 15% and to establish exemptions, incentives, or other reductions, and penalties and interest charges or assessments for failure to pay the tax in a timely manner.
DISCUSSION:
At the City Council meeting of August 12, 2015, staff was directed to bring back a resolution for consideration to establish a lower tax rate. This Resolution will set a tax rate of 10% for each medical cannabis collective, cooperative or dispensary that received or receives from the City Council a permit to operate as a medical cannabis collective, cooperative or dispensary pursuant to Cathedral City Municipal Code Section 9.108 as may be amended from time to time.
This Resolution also establishes appropriate penalties and interest charges, identified in Section 6 of the Resolution, for payment delinquencies and ...
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