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

Home Browse Search

(e) As part of the annual gross receipts/square footage tax(es) imposed by this Article, each commercial cannabis business located within the city shall pay a minimum basic rate of two thousand dollars ($2,000.00) annually for each branch establishment or separate property location of the commercial cannabis business transacted and carried on in the city, and for each separate type of commercial cannabis business conducted at the same location. Commercial cannabis businesses having no fixed place of business within the city shall be exempted from this requirement. Provided, however, as follows: (1) that commercial cannabis microbusinesses shall pay a minimum basic rate of two thousand dollars ($2,000.00) annually for each branch establishment or separate property location of the commercial cannabis business transacted and carried on in the city, but not for each separate type of commercial cannabis business conducted at the same location; and (2) that City licensed commercial cannabis retail businesses which are also licensed by the City for adult -use cannabis retail business (temporary consumption and/or special events), or socially equitable adult -use cannabis retail business (temporary consumption and/or special events) shall pay a minimum basic rate of two thousand dollars ($2,000.00) annually for each branch establishment or separate property location of the commercial cannabis business transacted and carried on in the city, but not for each separate type of commercial cannabis retail business conducted at the same location; and (3) that whenever in the discretion of the Collector, for the purposes of more fully achieving the intent of this Article, or to more efficiently and equitably administer the provisions of this Article, additional administrative commercial cannabis business licenses are required to allow the for the recognition of fee -exempt activities, or to allow for the separate accounting and apportionment of one (1) or more taxable endeavors relating to sub -activities incorporated within a consolidated commercial cannabis tax activity under subsection (d), then the Collector shall require that the affected commercial cannabis business obtain such administrative license(s), and in the case of taxable activities, separately report and pay the applicable gross receipts tax(es) due under the consolidated commercial cannabis tax activity to which said administrative license(s) relate. In such case, the minimum basic rate of two thousand dollars ($2,000.00) annually per license, shall not be applied, however, such administrative license(s) are subject to all other requirements under this Chapter, including all applicable licensing charges and service fees. (f) In the event the City should in the future permit additional categories of commercial cannabis business activity, as may from time to time be licensed by the State of California, such categories of commercial cannabis activities shall be subject to the same maximum tax rates as imposed herein. The City may by ordinance of the City Council initially set the required gross receipts/gross square footage tax rates based on category of cannabis business activity at lesser rates as may be deemed appropriate by the City Council. (g) For purposes of this Article, a commercial cannabis business 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 of this Chapter. (h) For purposes of this Article any person claiming an exemption from the gross receipts tax rate component of the combined gross receipts/square footage tax imposed under this Article on the basis of a claim of being a qualified "nonprofit organization" shall have the burden of substantiating their claim to the same extent and in the same manner as a marijuana collective/cooperative in accordance with section 21-127(a)(6) of this Chapter. (i) Cannabis businesses shall not pass the taxes imposed by this Article through to an adult -use cannabis retail business customer or commercial cannabis business customer in any fashion except as part of the basic product sales and/or service price. City of Santa Ana RFP No. 23-165 Page 141 of 196