HomeMy WebLinkAboutReso. 2025-015 - Increasing Business Taxes on Cannabis Businesses S�LUTION I�iO.2425-015
A S�►LUTIO►N d3F THE CITY �1DUN�IL +�F THE CITY tJF REDI}II�1G
INC ASIl'�1+G BUSIl�1ESS TAXES t�1V CANNASI� BU�INESSES
1'URSU�NT T�7► C PTER 4.10 OF THE 1Z�DDING MUIVICIPAL C4DE
�HE A�, �n June 19, 2018, the City Gouncil c�f the City of R:edding adopted Resalution No.
2�18-071 which established Navember 6, �t?1$, as the date fc�r a generai electit�n on a prt�p�sed
ballat measure seekirtg voter approval of a gener�l ta�on cannabis businesses aperating in the City
of Redding; and
WHE ` AS,the tax on cannabis businesses was appraved by the registered voters af the City of
Redding at the general electic�n held fln Navember 6,2t�18,and the results of electic�n were certified
by the City Clerk on I)ecemb�r 4, 20l 8; and
WI3E AS,the excise tax was cc�dified as{�rdinance No. 2597 and published as Chapter 4.10 of
the Redding Municipal Code("RMC"), and
WHE AS,RMC 4.1t�.050 establishes maximum excise tax rates for a11 eannabis businesses and
permits the City Council of the City of P�.eddin� to establish tax rates that do nc�t exceed the
established maximum rates; and
�HE AS, pursuant tc� RMC 4.1�.t�50; the City Council may; by resolutian, also decrease or
increase any such tax rate from tirne to time,provided that the tax rate shall nat;at any time,exceed
the maximum tax rate established in Subsection(B){l),
NOW, THE F(? , THE CIT'� �4UNCIL OF THE tCITY QF REDI}I1�TG S(�LVES
AS Ft?LLOWS:
1. The cannabis business tax rates set forth in Resolutian I�to. 2018-071 are hereby increased
and extended indefinitely until such time as further modified by the City Cauncil of the
City af Redding as follcrws:
a, +Culti�atian Rate: $5.00 per squa.re foot of cannabis cultivation area.
b. Manufacturiing, Proeessing, Laboratoa-�r Testingy �7tOY's�I��4 `cIII� 171S�PI��Ib1OYI
Rate:Four percent(4°/a)of gross receipts.
c, Retailer's Rate. Six percent (6%0} c�f gross receipts. Sales to perst�ns with a state
issued medical identification card, issued for medical puzpases, shall be excluded
from the calculation Qf gross receipts f�r the purpc�se of the cannabis busin�ss tax.
State issued medical identification card means a docum�nt issued by the State
I7epartment of Public I-�ealth that identifies a person authorized ta engage in the
medical use of cannabis and the persQn's designated pr�mary caregiver, if any, in
accordanc�with Sectian l 1362:71 of the Health and Saf�ty Code.
2. This Resc�lution shall take effect on July 1, 2{�25.
I HE BY CERTIF� that the faregoing resolutit�n was intraduced and adopted at a regular
rneeting of the City Caunci�of the City of Redding an the 4th day 4f March,2C125,by the fallowing
vofe:
AYES; CQUI`�TTCIL MEMBERS: -Audette,Resner,Munns
N+DE�. C()UNCIL I�IE ERS: -Dhanuka,Littau
ABSENT. CI�UNCIL ME ERS; -Nane
ABSTAIN: C(3UIYCYL ME E12S. -lYone
�TACK , Mayor
ATTESTt AP`PR+� D A�TO FO :
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�f � � , � j� �� �
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,,�HARLENE TIPTON, Cily Clerk CJHRISTIAN l�I. CURTIS,City Attorney