HomeMy WebLinkAboutReso 2020-014 - Cannabis Business Taxes RESOLUTION NO. 2020-014
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF REDDING
CONTINUING BUSINESS TAXES ON CANNABIS BUSINESSES
PURSUANT TO CHAPTER 10.40 OF THE REDDING MUNICIPAL
CODE
WHEREAS, on June 19, 2018, the City Council of the City of Redding adopted Resolution No.
2018-071 which established November 6, 2018, as the date for a general election on a proposed
ballot measure seeking voter approval of a general tax on cannabis businesses operating in the
City of Redding; and
WHEREAS, the tax on cannabis businesses was approved by the registered voters of the City of
Redding at the general election held on November 6, 2018, and the results of election were
certified by the City Clerk on December 4, 2018; and
WHEREAS, the excise tax was codified as Ordinance No. 2597 and published as Chapter 10.40
of the Redding Municipal Code ("RMC"); and
WHEREAS, RMC 4.10.050 establishes maximum excise tax rates for all cannabis businesses
and permits the City Council of the City of Redding to establish tax rates that do not exceed the
established maximum rates; and
WHEREAS, Resolution No. 2018-071 established excise tax rates for the initial period of one
year from the effective date of Ordinance No. 2597 but is silent on the issue of whether said tax
rates are intended to continue or be modified going forward; and
WHEREAS, it is the intention of the City Council to confirm the excise tax rates set forth in
Resolution No. 2018-071 as a continuing obligation of cannabis businesses within the City of
Redding and to extend such rates indefinitely until such time as modified by the City Council of
the City of Redding;
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF REDDING
RESOLVES AS FOLLOWS:
1. The cannabis business tax rates set forth in Resolution No. 2018-071 are hereby extended
indefinitely until such time as further modified by the City Council of the City of Redding
and are hereby restated as follows:
a. Cultivation Initial Rate: $3.00 per square foot of cannabis cultivation area.
b. Manufacturing, Processing, Laboratory Testing, Storage, and Distribution
Initial Rate: three percent (3%) of gross receipts. L)
C. Retailer's Initial Rate: five percent (5%) of gross receipts. Sales to persons with
a state issued medical identification card, issued for medical purposes, shall be C,
excluded from the calculation of gross receipts for the purpose of the cannabis
business tax. State issued medical identification card means a document issued by
the State Department of Public Health that identifies a person authorized to engage
in the medical use of cannabis and the person's designated primary caregiver, if
any, in accordance with Section 11362.71 of the Health and Safety Code.
2. For avoidance of doubt, it is intended that this Resolution shall have retroactive effect.
I HEREBY CERTIFY that the foregoing resolution was introduced and adopted at a regular
meeting of the City Council of the City of Redding on the 41 day of February, 2020, by the
following vote:
AYES: COUNCIL MEMBERS: Dacquisto, Resner, Schreder,Winter,and McElvain
NOES: COUNCIL MEMBERS: None
ABSENT: COUNCIL MEMBERS: None
ABSTAIN: COUNCIL MEMBERS: None
ADAM McELVAIN, Mayor
ATTEST: FORM APPROVED:
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PAMELA MIZE, City BARRY E. e ALT, City Attorney