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(i) The cost of tangible property sold or bartered; <br />(ii) The cost of materials or products used, labor or service cost, <br />interest paid, losses, or other expense; or <br />(iii) The cost of transportation of the marijuana, or other property or <br />product. <br />(b) Business license tax rates for marijuana collectives/cooperatives. <br />(1) Every collective/cooperative, excepting a qualified "nonprofit organization," <br />whether it is organized or conducted as a "not for profit' business, a "non- <br />profit' business, or a "for -profit" business, shall pay a separate business <br />license tax at a rate of up to ten (10) percent of the gross receipts generated <br />or otherwise received for each branch establishment or separate property <br />location of the business. The gross receipts tax shall be initially set at a rate <br />of five (5) percent. The maximum tax rate shall not exceed ten (10) percent <br />of gross receipts. This tax shall not be adjusted for inflation pursuant to <br />section 21-121. <br />(2) Notwithstanding the maximum tax rate of ten (10) percent of gross receipts <br />imposed under subsection (b)(1), the city council may in its discretion at any <br />time by ordinance implement a lower gross receipts tax rate for all marijuana <br />collectives/cooperatives, as defined in such ordinance, subject to the <br />maximum rate of ten (10) percent of gross receipts. The city council may by <br />ordinance increase any such gross receipts tax rate from time to time, not <br />to exceed the maximum gross receipts tax rate established under <br />subsection (b)(1). <br />(3) Effective January 1, 2018, the gross receipts tax initially set at a rate of five <br />(5) percent pursuant to subsection (b)(1), shall be increased to a rate of six <br />(6) percent. The maximum tax rate shall not exceed ten (10) percent of <br />gross receipts. This tax rate shall not be adjusted for inflation pursuant to <br />section 21-121. <br />(4) Effective January 1, 2023, the gross receipts tax is set at a rate of six (6) <br />percent pursuant to subsection (b)(3), shall be decreased to a rate of five <br />(5) percent. The maximum tax rate shall not exceed ten (10) percent of <br />gross receipts. This tax rate shall not be adjusted for inflation pursuant to <br />section 21-121. <br />(5) As part of the gross receipts tax imposed by this article, each <br />collective/cooperative shall pay a minimum basic rate of two thousand <br />dollars ($2,000.00) annually for each separate branch location or separate <br />property location of the business. <br />Ordinance No. NS-3026 <br />Page 51 of 69 <br />