Item 09 - Agreement for Business License Tax and Fee Software Services

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Sec. 21-126. Purpose. This article is required for the purpose of fixing the rate of taxation for marijuana collectives/cooperatives and for the purpose of providing a tax levy for the usual and current expenses of the City of Santa Ana. The taxes required to be paid under this article are declared to be required pursuant to the taxing power of the City of Santa Ana solely for the purpose of obtaining revenue and are not regulatory permit fees. ( Ord. No. NS-2864, § 5, 12-9-14 ) Sec. 21-127. Marijuana collectives/cooperatives—Annual business license tax assessment. (a) Annual business license tax assessment for marijuana collectives/cooperatives. (1) Every collective/cooperative whether it is organized or conducted as a "not for profit" business, a "nonprofit" business, or a "for -profit" business, shall pay an annual business license tax in accordance with Chapter 21 and the sections and subsections hereunder. (2) For the purposes of this article, a marijuana collective/cooperative is defined in section 40-101(b) and is considered to be a business as that term is defined in section 21-3. (3) For the purposes of this article, a collective/cooperative is not considered to be a religious or charitable organization. (4) "Medical marijuana collective/cooperative" or "collective/cooperative" shall mean any activity regulated or permitted by chapter 40. (5) For the purposes of this article, a marijuana collective/cooperative is not considered to be a business or person having a "specified exemption" or "specified exclusion" from business license taxation as set forth in sections 21-48 and 21-49. (6) For the purposes of this article, a "nonprofit organization" shall mean any institution or organization that is exempted from taxes measured by income or gross receipts pursuant to Article XIII, Section 26 of the California Constitution as codified under Chapter 4 (commencing with Section 23701) of Part 11 of Division 2 of the Revenue and Taxation Code and Section 37101 (c) of the Government Code or Sub - Chapter F (commencing with Section 501) of Chapter 1 of Subtitle A of the Internal Revenue Code of 1986. An institution or organization operating as a collective/cooperative and claiming a gross receipts assessment business license tax exemption under this section shall have the burden of furnishing to the collector such information as the collector may require to validate the claim of exemption including, but not limited to, such a determination by the California Franchise Tax Board or any other information requested by the collector. (7) For the purposes of this article, "gross receipts" shall mean any transfer of title or possession, exchange or barter, conditional or otherwise, in any manner or by any means whatsoever, of tangible personal property for a consideration including any monetary consideration for marijuana whatsoever, including, but not limited to, membership dues, reimbursements provided by members, regardless of form, or the total amount of cash or in -kind contributions, including all operating costs related to the growth, cultivation or provision of marijuana or any transaction related thereto. "Gross receipts" shall also include without limitation anything else of value obtained by a collective/cooperative. The term "gross receipts" shall also include the total amount of the sale price of all sales, the total amount charged or received for the performance of any act, service or employment of whatever nature it may be, whether or not such service, act or employment is done as a part of or in connection with the sale of goods, wares, merchandise, for which a charge is made or credit allowed, including all refunds, cash credits and properties of any amount or nature, any amount for which credit is allowed by the seller to City of Santa Ana RFP No. 23-165 Page 132 of 196