|
Sale, assignment, or transfer of business. A medicinal cannabis retail business owner/operator who is
<br />selling, assigning, or otherwise transferring their business (hereinafter collectively referred to as
<br />transferor) shall notify the collector in writing of such sale, assignment, or transfer at least ninety (90)
<br />days in advance of the date of the sale, assignment, or transfer and shall notify the collector in writing
<br />of the name and address of the purchaser, assignee, transferee, or other successor in interest
<br />(hereinafter collectively referred to as successor) unless the decision to sell, assign, or otherwise
<br />transfer their business was made within less than a ninety (90) day period prior to the sale, assignment,
<br />or transfer, in which case the transferor shall then immediately notify the successor of the successor's
<br />responsibility for unpaid business license taxes, including penalties, interest, charges, fees, or costs
<br />(hereinafter collectively referred to as business license tax liabilities) for the period prior to the sale,
<br />assignment, or transfer as set forth in subsections (d) and (e) below, and shall further certify in writing
<br />to the collector that the successor was notified of the requirements of this Article regarding their
<br />responsibility for unpaid business license tax liabilities.
<br />(b) Remitting and reporting requirements. Each medicinal cannabis retail business owner/operator upon the
<br />sale, assignment, or other transfer, or termination of business for any reason shall, on or before the last day
<br />of the month following the sale, assignment, transfer, or termination of business, file a final return to the
<br />collector on City approved forms, of the total gross receipts received, adjustments to gross receipts, the
<br />amount of business license tax collected for the reporting period, remittances made, if any, and the balance
<br />of the business license tax due, if any, shall be remitted to the collector.
<br />(c) Closeout audit. After filing the final return and remitting the balance due, the medicinal cannabis retail
<br />business owner/operator shall make its records of account available for a closeout audit by the collector, his
<br />or her revenue officers, or duly authorized employees or agents of the City. The decision to perform a
<br />closeout audit shall be made solely at the discretion of the collector. If, upon closeout audit, or by means of
<br />other information available to them, the collector determines that the owner/operator selling, assigning, or
<br />otherwise transferring, or terminating their business is found to have satisfied all business license tax
<br />liabilities, the collector shall issue to such business owner/operator a certificate of nonliability.
<br />If, upon closeout audit, or by means of other information available to them, the collector determines that the
<br />owner/operator selling, assigning, or otherwise transferring, or terminating their business is deficient in either
<br />their return or remittance, or both, the collector shall immediately notify such owner/operator of the amount of
<br />the net deficiency, plus applicable penalties, interest, charges, fees, or costs. Upon such owner's/operator's
<br />remittance of all business license tax liabilities owing, the collector shall issue a certificate of nonliability.
<br />(d) Successor's duty to notify. If a medicinal cannabis retail business owner/operator decides to sell, assign, or
<br />otherwise transfer their business, their successor shall notify the collector of the date of the sale,
<br />assignment, or other transfer at least ninety (90) days before the date of the sale, assignment, or transfer. It
<br />shall be the duty of the successor to obtain written verification from the collector's office that the transferor
<br />does not have or is not liable for any outstanding business license taxes liabilities. After the successor seeks
<br />written verification from the collector's office, if the collector notifies the successor that the transferor has or
<br />is liable for any outstanding amount of business license tax liabilities, the successor shall withhold an amount
<br />equal to such outstanding business license tax liabilities until the transferor produces a certificate of
<br />nonliability stating the nonliability of the transferor for payment of business license tax liabilities. If the
<br />transferor does not present a certificate of nonliability within ninety (90) days after such sale, assignment, or
<br />other transfer, the successor shall deposit the withheld amount with the collector pending settlement of the
<br />account of the transferor.
<br />If the decision to sell, assign, or otherwise transfer was made within less than a ninety (90) day period prior to the
<br />date of the sale, assignment, or other transfer, the successor shall notify the collector of the sale, assignment, or
<br />transfer immediately and shall withhold an amount equal to the sum of the transferor's last three (3) months' of
<br />reported and remitted business license taxes until the transferor produces a certificate of nonliability stating the
<br />nonliability of the transferor for payment of business license tax liabilities. If the transferor does not present a
<br />City of Santa Ana RFP No. 23-165 Page 137 of 196
<br />
|