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Ad Hoc Cannabis Committee, in coordination with the Chief Administrative Office, recommending the Board approve the Final Passage (Second Reading) of Ordinance 5107 pertaining to Section 130.14.280 of Title 130, Article 9 of the El Dorado County Ordinance Code entitled “Taxation of Commercial Cannabis Activities” renumbered in Chapter 22 of Title 3, with amendments. (Cont. 8/27/19, Item 46)
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DISCUSSION / BACKGROUND
On August 27, 2019, the Board approved the Introduciton of Ordinance 5107 item 46 (Legistar 19-1186). The Board continued this matter to September 10, 2019, for Final Passage of Ordinance 5107.
Ad hoc Cannabis Committee recommending the Board of Supervisors adopts proposed amendments to the commercial cannabis tax ordinance (Measure N). The proposed amendments, as identified on the red-line versions of the ordinance, include the following:
- Recodifies the taxation ordinance within the Revenue and Finance section of County Code as Chapter 3.22.
- For manufacturing, tax rates can be set based on the type of manufacturing. The proposed amendments link the levels of the taxes to the manufacturing types as identified by the State Department of Health’s Manufactured Cannabis Safety Branch.
- Incorporates State’s language to determine sale prices in “non-arm’s length transactions,” such as the sale between a distributor, manufacturer, or retailer that are affiliated or under common-ownership.
- Annual gross receipts for such transactions shall be based on the product’s fair market value if it were sold in an arm’s length transaction. An “arm’s length transaction” means a sale entered into in good faith and for valuable consideration that reflects the fair market value in the open market between two informed and willing parties, neither under any compulsion to participate in the transaction.
- Clarifies that the illegal status of cannabis at the federal level does not preclude the Treasurer-Tax Collector from issuing a County Business L...
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