Title
Planning and Building Department, Commercial Cannabis Division, and the Treasurer-Tax Collector recommending the Board Approve the Final Passage (Second Reading) of Ordinance 5203 to consider amendments to the commercial cannabis tax rate structure changing the tax rate types for all types of cannabis cultivation from various square footage rates to three percent of gross receipts commencing upon the adoption of the Ordinance and increase by one half percent each subsequent fiscal year until reaching four percent; increasing to three and half percent on July 1, 2025, and four percent on July 1, 2026. (Cont. 6/25/2024, Item 52)
FUNDING: N/A
Body
DISCUSSION / BACKGROUND
On June 25, 2024, the Board heard the Introduction (First Reading) of Ordinance 5203. The Board Continued Ordinance 5203 to July 16, 2024 for Final Passage (Second Reading).
On October 17, 2023 (Legistar File 23-1817), the Board approved a Resolution of Intention (ROI) to adopt amendments to the commercial cannabis ordinances. The tax amendments portion of that ROI was separated from the other five amendments as it is not subject to the statutory review process required for the zoning code. All other amendments were approved by the Board on February 27, 2024 (Legistar File 24-0175), leaving the final consideration of tax amendments as the final update needed to the ordinance.
Planning and Building and the Treasurer-Tax Collector are requesting that the Board consider adoption of an ordinance amending the taxation of commercial cannabis activity structure and rates. The amendment will reduce labor intensity, making administration and auditing simpler. The proposed ordinance will change the tax rate for all types of cannabis cultivation from various square footage rates to three percent of gross receipts upon adoption. Preliminary calculations suggest that the amendment will not significantly impact the amount of taxes collected. The rate will increase to three and half percent on July 1, ...
Click here for full text