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

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(1) The payment of a business tax required by this article, and its acceptance by the city, shall not entitle any person to carry on any collective/cooperative unless the person has complied with all of the requirements of this Code and all other applicable laws, nor to carry on any collective/cooperative 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 collective/cooperative is in violation of any law. (2) No tax paid under the provisions of this article shall be construed as authorizing the conduct or continuance of any illegal or unlawful business, or any legal business in an illegal manner, or any business in violation of any ordinance of the city. Nothing in this article implies or authorizes that any activity connected with the distribution or possession of marijuana is legal unless otherwise authorized and allowed by California and federal law. Nothing in this section shall be applied or construed as authorizing the sale of marijuana. (i) Business license tax certificate —Required. There are imposed upon all persons engaged in transacting and carrying on any collective/cooperative business activity in the city taxes in the amounts prescribed in this article. It shall be unlawful for any person, either for him or herself or for any other person, to commence, transact or carry on any business in the city without first having procured a business license from the city under this chapter and having paid the taxes set forth in this article, and without complying with any and all applicable provisions contained in this chapter. The carrying on of any collective/cooperative without complying with all the provisions of this article shall constitute a separate violation of this chapter for each and every day that such collective/cooperative is so carried on. (j) Classification of business license assessment type —Term and renewal. The business license issued to marijuana collectives/cooperatives shall be classed as a gross receipts assessment type, issued for the same term of license as set forth in subsection 21-71(c) and shall be subject to renewal in accordance with sections 21-72(c), 21-73(c), and 21-77. (k) Operative date. Upon the approval by the majority of the voters of the city at the November 4, 2014 general election, the taxes imposed by this article shall become operative and shall be applied by the collector upon all marijuana collectives/cooperatives. (1) Operative date of increased or decreased gross receipts tax rate. The gross receipts tax set initially at a rate of five (5) percent pursuant to subsection (b)(1) [(Ordinance No. NS-2864, Section 5, adopted 12-9-14)] and increased to a rate of six (6) percent effective January 1, 2018, pursuant to subsection (b)(3) [(Ordinance No. NS-2930, Section 8, adopted 11-21-17)], shall be decreased to a rate of five (5) percent effective January 1, 2023, pursuant to subsection (b)(4) [( Ordinance No. NS-3026 , § 8, adopted 10-4-22)]. (m) Notwithstanding the tax rates imposed herein under subsection (1), the City Council may, in its discretion, at any time by resolution, implement any lower or higher tax rate it deems appropriate, not to exceed the maximum rate established by subsections (b)(2). ( Ord. No. NS-2864 , § 5, 12-9-14; Ord. No. NS-2930 , § 8, 11-21-17; Ord. No. NS-3026 , § 8, 10-4-22, eff. 1-1-23) Editor's note(s)—Sec. 21-127, subsection (1), effective January 1, 2023, is hereby adopted by reference and is subject to amendment from time to time by resolution. Sec. 21-128. Effect of state and federal reference/authorization. Unless specifically provided otherwise, any reference to a state or federal statute in this article or chapter shall mean such statute as it may be amended from time to time, provided that such reference to a statute herein shall not include any subsequent amendment thereto, or to any subsequent change of interpretation thereto by a state or federal agency or court of law with the duty to interpret such law, to the extent that such amendment or change of interpretation would require voter approval under California law, or to the extent that such change would result in a tax decrease. Only to the extent voter approval would otherwise be required or a tax decrease City of Santa Ana RFP No. 23-165 Page 135 of 196