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(Ord. No. NS-2962 , § 2(Exh. A-1), 11-6-18) <br />Sec. 21-133. Commercial cannabis businesses —Annual business license tax assessment. <br />Every person engaged in a "commercial cannabis business" or "commercial cannabis activity" shall pay an <br />annual business license tax as outlined below. This Article shall not apply, except with respect to medical marijuana <br />cooperatives/collectives (also referred to as medicinal commercial cannabis medicinal retail businesses) which are <br />vertically and/or horizontally integrated with commercial cannabis businesses, to medical marijuana <br />cooperatives/collectives which are governed by Article XII of this Chapter, or to personal cultivation as defined in <br />section 40-101(b) of this Code. <br />(a) For each branch establishment or separate property location of a commercial cannabis business <br />transacted and carried on in the city, and for each separate type of commercial cannabis business <br />conducted at the same location, the higher of the two (2) following tax rates shall be due to the City for <br />each monthly reporting period: <br />(1) Up to ten (10) percent of each dollar of gross receipts received or generated for each monthly <br />reporting period. <br />(2) Up to thirty-five dollars ($35.00) per square foot (annual tax rate) prorated monthly to one - <br />twelfth ( 1/12) of the annual tax rate amount. <br />(b) These tax rates shall not be adjusted for inflation pursuant to section 21-121 of this Chapter. <br />(c) Notwithstanding the tax rates imposed herein under subsection (a), the City Council may, in its <br />discretion, at any time by resolution, implement any lower tax rate it deems appropriate, and may by <br />resolution increase such tax rate from time to time, not to exceed the maximum rates established by <br />subsection (a). <br />(d) As of the operative date of this Article, the business license gross receipts tax rates and square footage <br />tax rates application to specific commercial cannabis business activities have been established by city <br />ordinance [(Ordinance No. NS-2962, Section 2 (Exhibit A-1), adopted 11-6-18; and Ordinance No. NS- <br />2972, Section 7, adopted 9-3-19)] and by the following resolutions as referenced herein below in <br />subsections (s), (t), and (u). <br />Commercial Cannabis Business Activity <br />Gross Receipts <br />Gross Square <br />Tax Rate <br />Footage Tax Rate <br />Adult -use Cannabis Retail Business (including Delivery) <br />8% <br />$ 25.00 <br />(effective beginning December 21, 2018 through December <br />31, 2022) <br />Adult -use Cannabis Retail Business (including Delivery, but <br />7% <br />$ 25.00 <br />not including Consumption Lounge and Temporary <br />Consumption and/or Special Events) (effective beginning <br />January 1, 2023) <br />Adult -use Cannabis Retail Business (including Delivery and <br />7% <br />$ 25.00 <br />Consumption Lounge) <br />(effective beginning January 1, 2023) <br />Adult -use Cannabis Retail Business (Temporary <br />7% <br />$ 0.00 <br />Consumption and/or Special Events) <br />(effective beginning January 1, 2023) <br />City of Santa Ana RFP No. 23-165 Page 139 of 196 <br />