HomeMy WebLinkAboutResolution - 3638 STATE OF CALIFORNIA ) RESOLUTION NO. 3638
COUNTY OF RIVERSIDE ) ss.
CITY OF SAN JACINTO )
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN
JACINTO, CALIFORNIA CALLING FOR THE PLACEMENT OF A
GENERAL TAX MEASURE TO BE HELD AT THE NOVEMBER 8,
2016 GENERAL MUNICIPAL ELECTION FOR THE SUBMISSION
TO THE QUALIFIED VOTERS OF A PROPOSED ORDINANCE
ESTABLISHING A TAX ON CANNABIS/MARUUANA ACTIVITIES
OPERATING WITHIN THE CITY OF SAN JACINTO.
WHEREAS, pursuant to Section 9222 of the California Elections Code, the City
Council has authority to place measures on the ballot to be considered at a Municipal
Election; and
WHEREAS, pursuant to Chapter 9.28 of the San Jacinto Municipal Code, the
City currently bans all cannabis/marijuana cultivation, manufacture, sale or delivery
activities within the City's limits; and
WHEREAS, a Statewide initiative measure has qualified for the November 8,
2016 ballot known as the "Adult Use of Marijuana Act" (Proposition 64). If passed by
California voters, this measure would legalize the personal use of cannabis/marijuana for
recreational purposes, but would allow local agencies to reasonably regulate and tax
activities tied to recreational cannabis/marijuana. Further, Proposition 64 would require
cities to permit indoor cultivation of recreational and medical cannabis/marijuana, subject
to reasonable local regulation (a city could no longer outright ban indoor
cannabis/marijuana cultivation); and
WHEREAS, in the event that future State or local law should permit marijuana
businesses, to operate within the City, the City Council desires to submit to the voters an
amendment to the San Jacinto Municipal Code to establish both (i) a maximum 15%
general tax on the gross receipts received by a marijuana business through its operations;
and (ii) a tax on space utilized at such a business for marijuana cultivation and/or
manufacturing, with a maximum rate of$50.00 per square foot; and
WHEREAS, the proposed marijuana tax will be a general tax the proceeds of
which are deposited into the City's general fund. The general fund pays for important
City services such as police protection, fire and paramedic services, street operations and
maintenance, library services, parks and recreation services and general municipal
services to the public; and
WHEREAS, on November 6, 1996, the voters of the State of California approved
Proposition 218 (California Constitution, Article XHIC), an amendment to the State
Constitution which requires that all general taxes which are imposed, extended or
increased must be submitted to the electorate and approved by a majority vote of the
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qualified electors voting in the election; and
WHEREAS, pursuant to Proposition 218 (California Constitution Article XIIIC,
§2(b)), any election for the approval of a new or increased general tax must be
consolidated with a regularly scheduled general election for members of the governing
body of the local government; and
WHEREAS, pursuant to San Jacinto Municipal Code, Section 1.16.010, the
City's general municipal elections for officers are held on the first Tuesday after the first
Monday in November of each even-numbered year. The next regularly scheduled
General Municipal Election for the purpose of filling elective offices will be held on
Tuesday,November 8, 2016; and
WHEREAS, the City Council desires to submit to the voters at the November 8,
2016 General Municipal Election one ballot measure, entitled:
"In the event future State or local law permits marijuana activities to operate in
the City of San Jacinto, shall the City enact a tax on marijuana activities of up to
$50 per square foot of space utilized for marijuana cultivation or manufacturing,
and up to 15% of the gross receipts from marijuana and related products,
generating approximately $1,250,000 annually to pay for general City services,
such as police, fire, and parks, until ended by voters?"
WHEREAS, pursuant to Government Code §53724 ("Proposition 62"), a two-
thirds (2/3) vote of the City Council is required to place the Measure on the November 8,
2016 ballot.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SAN
JACINTO, CALIFORNIA, DOES HEREBY FIND, DETERMINE AND RESOLVE AS
FOLLOWS:
SECTION 1. Findings. The City Council finds that all of the preceding recitals
are true and correct and are hereby incorporated and adopted as findings and
determinations by the City Council as if fully set forth herein.
SECTION 2. By adoption of Resolution No. 3620 on June 7, 2016, the City
Council has called and given notice of a General Municipal Election to be held on
Tuesday, November 8, 2016 in the City of San Jacinto, County of Riverside, for the
purpose of filling elective offices.
SECTION 3. Submission of Measure. Pursuant to Government Code §53724
and any other applicable requirements of the laws of the State of California relating to
general law cities, the City Council, by a two-thirds (2/3) supermajority vote, hereby
orders the ordinance attached hereto as Exhibit "A" and by this reference incorporated
herein and made an operative part hereof, to be submitted to the voters of the City at the
General Municipal Election to be held on Tuesday,November 8, 2016.
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SECTION 4. The ballot measure shall be presented and printed upon the ballot
submitted to the voters in the manner and form set forth in this Section 4. On the ballot
to be submitted to the qualified voters at the City General Municipal Election to be held
on Tuesday, November 8, 2016, in addition to any other matters required by law, there
shall be printed substantially the following:
"In the event future State or local law YES
permits marijuana activities to operate in
the City of San Jacinto, shall the City enact
a tax on marijuana businesses of up to $50
per square foot of space utilized for
marijuana cultivation or manufacturing,
and up to 15% of the gross receipts from
marijuana and related products, generating
approximately $1,250,000 annually to pay
for general City services, such as police,
fire, and parks, until ended by voters?"
NO
SECTION 5. Conduct of Election. The City Clerk is authorized, instructed and
directed to procure and furnish any and all official ballots, printed matter and all supplies,
equipment and paraphernalia that may be necessary in order to properly and lawfully
conduct the election, In all particulars not recited in this Resolution, the election shall be
held and conducted as provided by law for holding municipal elections.
SECTION 6. Notice of Election. Notice of the time and place of holding the
election is hereby given, and the City Clerk is authorized, instructed and directed to give
further or additional notice of the election, in time, form and manner as required by law.
SECTION 7. Impartial Analysis. Pursuant to California Elections Code §9280,
the City Council hereby directs the City Clerk to transmit a copy of the measure as set
forth herein to the City Attorney. The City Attorney shall prepare an impartial analysis
of the measure, not to exceed 500 words in length, showing the effect of the measure on
the existing law and the operation of the measure, and transmit such impartial analysis to
the City Clerk not later than end of business on August 22, 2016. The impartial analysis
shall include a statement indicating whether the Measure was placed on the ballot by a
petition signed by the requisite number of voters or by the City Council. In the event the
entire text of the Measure is not printed on the ballot, or in the voter information portion
of the sample ballot, there shall be printed immediately below the impartial analysis, in
no less than 10-font bold type, the following: "The above statement is an impartial
analysis of Ordinance or Measure "_". If you desire a copy of the ordinance or
measure, please call the election official's office at (insert phone number) and a copy
will be mailed at no cost to you:'
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SECTION 8. Certification. The City Clerk shall certify to the adoption of this
Resolution.
SECTION 9. Filing with County. The City Clerk shall, not later than the 88th
day prior to the General Municipal Election to be held on Tuesday, November 8, 2016,
file with the Board of Supervisors and the County Clerk — Registrar of Voters of the
County of Riverside, State of California, a certified copy of this Resolution.
SECTION 10. Public Examination. Pursuant to California Elections Code
§9295, this measure will be available for public examination for no fewer than ten (10)
calendar days prior to being submitted for printing in the sample ballot. The Clerk shall
post notice in the Clerk's office of the specific dates that the examination period will run.
PASSED, APPROVED and ADOPTED this 8th day of August, 2016 by the following
vote:
AYES: Gagnepain, Ledezma, Miller, Ruiz, Kotyuk
NAYS: None
ABSENT: None
ABSTAIN: None
City of San Jacinto
Andrew . Kotyuk, Mayor
ATTEST:
J atron, Deputy City Clerk
APPROVED AS TO FORM:
BEST BEST& pKRIEGER
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1. '-1 C
Jeffrey S. Ballinger, City Attorney
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CERTIFICATION
I, Jan Catron, Deputy City Clerk of the City of San Jacinto do hereby certify that
the foregoing Resolution No. 3638 was duly adopted by the City Council of the City of
San Jacinto at a special meeting thereof, held on the 8th day of August, 2016, by the
following vote of Council:
AYES: Gagnepain, Ledezma, Miller, Ruiz, Kotyuk
NAYS: None
ABSENT: None
ABSTAIN: None
'Catron
eputy City Clerk
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Exhibit "A"
ORDINANCE NO. 2016-08
MEASURE it "
AN ORDINANCE OF THE PEOPLE OF THE CITY OF SAN JACINTO
ADDING CHAPTER 3.32 TO TITLE 3 (REVENUE AND FINANCE)
OF THE SAN JACINTO MUNICIPAL CODE ESTABLISHING A TAX
ON CANNABIS/MARIJUANA ACTIVITIES OPERATING WITHIN
THE CITY OF SAN JACINTO.
THE PEOPLE OF THE CITY OF SAN JACINTO, CALIFORNIA DO HEREBY
ORDAIN AS FOLLOWS:
SECTION 1. Chapter 3.32 is hereby added to Title 3 (Revenue and Finance) of
the San Jacinto Municipal Code and shall read as follows:
"CHAPTER 3.32
CANNABIS/MARIJUANA TAX.
3.32.010—Imposition of Tax.
A. In the event that any cannabis business, (as defined herein) or cannabis
activity should be permitted in the City of San Jacinto, every person engaged in operating
or otherwise conducting a cannabis business, and/or operating a space utilized in
connection with the cultivation/manufacturing of cannabis or cannabis-infused products
within the City of San Jacinto shall pay the following cannabis taxes:
1. Up to a maximum of fifteen (15) cents for each $1.00 of gross
receipts or fractional part thereof; subject to adjustment by the City Council
pursuant to Section 3.32.050; and
2. Up to a maximum of fifty dollars ($50.00) per square foot of space
utilized in connection with the cultivation/manufacturing of cannabis or cannabis-
infused products; subject to adjustment by the City Council pursuant to Section
3.32.050,
B. No cannabis business shall be deemed to be exempt from the payment of
the taxes identified above by any other provision of this Code, unless expressly exempted
under this Chapter.
3.32.020—Purpose of Tax.
The purpose of this tax is to raise revenue to fund general government services.
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3.32.030—Definitions.
For purposes of this Chapter:
A. "Cannabis" means all parts of the plant Cannabis Saliva Linnaeus,
Cannabis Indica, or Catntabis Ruderalis, whether growing or not; the seeds thereof; the
resin, whether crude or purified, extracted from any part of the plant; and every
compound, manufacture, salt, derivative, mixture, or preparation of the plant, its seeds, or
resin. "Cannabis" also means the separated resin, whether crude or purified, obtained
from marijuana. "Cannabis" also means "marijuana" as defined by Section 11018 of the
Health and Safety Code.
B. A "Cannabis business" means any business, organization or facility,
regardless of form, whether operating for profit or not for profit, where cannabis is
planted, grown, harvested, dried, cured, graded, trimmed, stored, tested, manufactured,
compounded, converted or processed into cannabis-infused products (including but not
limited to tinctures, oils, creams, candies and "medibles"), packaged, prepared, labeled,
distributed, delivered, sold at retail or wholesale, or transported, or that does all or any
combination of those activities.
C. "Gross receipts" means the total amount of monetary consideration
actually received or receivable by a cannabis business for providing, at wholesale or
retail, cannabis and cannabis-infused products, overhead costs, operating expenses, or
related services whatsoever, including, but not limited to: membership dues, the value of
monetary and in-kind contributions, payments, reimbursement of fees for cultivation,
manufacturing, distribution, dispensing, storing, exchanging, processing, delivering,
making available, or transmitting of cannabis or cannabis-infused products, any payments
made, and anything else of value obtained by a cannabis business. Included in "gross
receipts" shall be all receipts, cash, credits, and property of any kind without deduction of
the cost of the property sold, the cost of the materials used, labor or service casts, interest
paid or payable, or losses or other expenses whatsoever.
D. "Person" means any individual, firm, partnership, joint venture,
association, social club, fraternal organization, joint stock company, corporation, estate,
trust, business trust, receiver, trustee, syndicate or any other group or combination acting
as a unit, which is conducting itself as a cannabis business.
E. "Space utilized in connection with the cultivation/manufacturing of
cannabis or cannabis-infused products" means any space or ground, floor or other surface
area (whether horizontal or vertical) which is used for either or both of the following:
1. Cannabis germination, seeding, vegetation, pre-flowering,
flowering and harvesting; including without limitation activities such as growing,
planting, lighting, warming, cooling, aerating, fertilizing, watering, irrigating,
topping, pinching, cropping, curing or drying cannabis, as well as storing any
products, supplies or equipment related to any such activities, no matter where
such storage may take place or such storage space may be located.
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2. The manufacture or processing of cannabis for wholesale or retail
sale or into cannabis-infused products (including but not limited to tinctures, oils,
creams, candies and "medibles") for wholesale or retail sale, including
compounding, converting, testing, packaging, preparing, labeling, distribution or
transport, or all or any combination of those activities.
3.32.040—Payment Obligation.
All taxpayers subject to this Chapter must pay the full tax imposed by this Chapter
regardless of any rebate, exemption, incentive, or other reduction set forth elsewhere in
this Code, except as required by California or Federal law. Failure to pay the tax shall be
subject to penalties, interest charges, and assessments as the City Council may establish
and the City may use any or all other code enforcement remedies provided in this Code.
No provision in this Code can lower the tax rate set forth in this Chapter or otherwise
reduce the amount of taxes paid hereunder unless the provision specifically states that the
reduction applies.
3.32.050—City Council Authorization to Adjust Tax Rate and/or Methodology.
The City Council may impose the tax authorized by this Chapter at a lower rate and may
otherwise repeal or amend this Chapter without a vote of the People. However, as
required by California Constitution Article XIIIC (Proposition 218), voter approval is
required for any amendment that would increase the maximum rate or methodology of
any tax levied pursuant to this Chapter. The people of the City of San Jacinto affirm that
the following actions shall not constitute an increase of the maximum rate or
methodology of the tax requiring subsequent voter approval:
A. The restoration of the rate of the tax to a rate that is no higher than the
maximum set by this voter-approved Chapter, if the City Council has previously acted to
reduce the rate of the tax;
B. An action that interprets or clarifies the methodology of the tax, or any
definition applicable to the tax, so long as interpretation or clarification (even if contrary
to some prior interpretation or clarification) is not inconsistent with the language of this
Chapter;
C. The establishment of a class of person or service that is exempt or
excepted from the tax or the discontinuation of any such exemption or exception; and
D. Resuming collection of the tax imposed by this Chapter, even if the City
had, for some period of time, either suspended collection of the tax or otherwise failed to
collect the tax, in whole or in part.
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3.32.060—Payment of Tax Does Not Authorize Illegal Activity.
The payment of the tax required pursuant to this Chapter shall not be construed as
authorizing the conduct or continuance of any illegal business or of a legal business in an
illegal manner. Nothing in this Chapter implies or authorizes that any activity connected
with the distribution or possession of cannabis is legal unless otherwise authorized and
allowed in strict and full conformance to the provisions of this Code.
3.32.070—Cannabis Cultivation/Manufacturing Tax Is Not a Sales Tax.
The tax provided for under the provisions of this Chapter is not a Sales, Transactions or
Use Tax and shall not be calculated or assessed as such. The tax established under this
Chapter shall not be separately identified or otherwise specifically assessed or charged to
any client of a cannabis business.
3.32.080—Amendments and Administration.
A. This Chapter was submitted to the voters for approval. Any amendment to
this Chapter to increase the tax above the maximum rate expressly provided in Section
3.32.010 shall not become effective until such amendment is approved by the voters. The
voters expressly authorize the City Council to amend, modify, change, or revise any other
provision of this Chapter as the City Council deems in the best interest of the City, as set
forth in Section 3.32.050.
B. The City Manager or the City Manager's designee shall promulgate rules,
regulations and procedures to implement and administer this Chapter to ensure the
efficient and timely collection of the tax imposed by this Chapter, including without
limitation, formulation and implementation of penalties and interest to be assessed for
failure to pay the tax as provided.
C. The City Manager or the City Manager's designee shall annually audit the
taxes imposed by this Chapter to verify that tax revenues have been properly expended in
accordance with the law.
D. Pursuant to California Constitution Article XII113, the appropriation limit
for the City is increased to the maximum extent over the maximum period of time
allowed under law consistent with the revenues generated by the tax established by this
Chapter.
3.32.090—Returns and Remittances.
The Tax shall be due and payable as follows:
A. The tax established by this Chapter shall be collected quarterly. Each
person owing tax shall prepare and file a tax return to the City Manager setting out the
total amount of tax owed for the preceding calendar quarter during which the tax was in
effect. The return shall be filed not later than thirty (30) calendar days following the last
10
day of the preceding each calendar quarter. At the time the tax return is filed, the full
amount of the tax owed for the preceding calendar quarter shall be remitted to the City
Manager.
B. All tax returns shall be completed on forms provided by the Director of
Finance.
C. Tax returns and payments for all outstanding taxes owed the City are
immediately due to the City Manager upon cessation of business for any reason.
D. Whenever any payment, statement, report, request or other communication
received by the City Manager is received after the time prescribed by this Section for the
receipt thereof, but is in an envelope bearing a postmark showing that it was mailed on or
prior to the date prescribed in this Section for the receipt thereof, or whenever the City
Manager is furnished substantial proof that the payment, statement, report, request, or
other communication was in fact deposited in the United States mail on or prior to the
date prescribed for receipt thereof, the City Manager may regard such payment,
statement, report, request, or other communication as having been timely received. If the
due date falls on Friday, Saturday, Sunday, or a holiday, the due date shall be the next
regular business day on which the City Hall is open to the public.
E. Unless otherwise specifically provided under other provisions of this
Chapter, the taxes required to be paid pursuant to this Chapter shall be deemed delinquent
if not paid on or before the due date specified in Subsection A of this Section.
F. The City Manager is not required to send a delinquency or other notice or
bill to any person subject to the provisions of this Chapter and failure to send such notice
or bill shall not affect the validity of any tax or penalty due under the provisions of this
Chapter.
3.32.100—Failure to Pay Tax.
A. Any person who fails or refuses to pay any tax required to be paid
pursuant to this Chapter on or before the due date shall pay penalties and interest as
follows:
1. A penalty equal to twenty-five percent (25%) of the amount of the
tax in addition to the amount of the tax, plus interest on the unpaid tax calculated from
the due date of the tax at a rate established by resolution of the City Council; and
2. An additional penalty equal to twenty-five percent (25%) of the
amount of the tax if the tax remains unpaid for a period exceeding one calendar month
beyond the due date, plus interest on the unpaid tax and interest on the unpaid penalties
calculated at the rate established by resolution of the City Council.
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B. Whenever a check is submitted in payment of a tax and the check is
subsequently returned unpaid by the bank upon which the check is drawn, and the check
is not redeemed prior to the due date, the taxpayer will be liable for the tax amount due
plus penalties and interest as provided for in this Section plus any amount allowed under
State law.
C. The tax due shall be that amount due and payable from January 1, 2017 or
the first date on which the cannabis business, or cannabis activity, first operated in the
City, whichever date occurred last, together with applicable penalties and interest
calculated in accordance with Subsection A of this Section.
D. The City Manager may waive the first and second penalties of twenty-five
percent (25%) each imposed upon any person if:
1. The person provides evidence satisfactory to the City Manager that
failure to pay timely was due to circumstances beyond the control of the person and
occurred notwithstanding the exercise of ordinary care and the absence of willful neglect,
and the person paid the delinquent tax and accrued interest owed the City prior to
applying to the City Manager for a waiver.
2. The waiver provisions specified in this Subsection shall not apply
to interest accrued on the delinquent tax and a waiver shall be granted only once during
any twenty-four month period.
3.32.110—Refunds.
A. No refund shall be made of any tax collected pursuant to this Chapter,
except as provided in this Section.
B. No refund of any tax collected pursuant to this Chapter shall be made
because of the discontinuation, dissolution, or other termination of a cannabis business.
C. Whenever the amount of any tax, penalty, or interest has been overpaid,
paid more than once, or has been erroneously or illegally collected or received by the
City under this Chapter, such amount may be refunded to the person who paid the tax
provided that a written claim for refund is timely filed with the City Manager, pursuant to
Chapter 2.64 of this Code. The period for filing a claim for refund shall be one (1) year
from the time the tax was paid or erroneously or illegally collected; provided however,
that in no event shall the period to file such claim expire prior to the shortest period
allowable for filing a tax refund claim under Government Code Section 911.2. Such
claim must clearly establish claimant's right to the refund by written records showing
entitlement thereto, and must clearly set forth the facts and legal theories under which the
claimant believes he or she has right to a refund. Where the amount of any individual
refund claim is in excess of the amount set by ordinance or resolution of the City Council
relating to the settlement of general liability claims against the City by the City Manager,
City Council approval shall be required.
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D. The filing of a written claim pursuant to Government Code Section 935 is
a prerequisite to any suit thereon.
E. The City Manager shall have the right to examine and audit all the books
and business records of the claimant in order to determine the eligibility of the claimant
to the claimed refund. No claim for refund shall be allowed if the claimant refuses to
allow such examination of claimant's books and business records after request by the
City Manager to do so.
F. Any person entitled to a refund of taxes paid pursuant to this Chapter may
elect in writing to have such refund applied as a credit against a cannabis business's taxes
for the next calendar quarter.
G. In the event that the tax was erroneously paid and the error is attributable
to the City, the amount of the tax erroneously paid shall be refunded to the claimant. If
the error is attributable to the claimant, the City shall retain the amount set forth in this
Chapter from the amount to be refunded to cover expenses,
H. The City Manager shall initiate a refund of any tax which has been
overpaid or erroneously collected whenever the overpayment or erroneous collection is
uncovered by a City audit of tax revenues.
3.32.120—Enforcement.
A. It shall be the duty of the City Manager to enforce each and all of the
provisions of this Chapter.
B. For purposes of administration and enforcement of this Chapter generally,
the City Manager, with the concurrence of the City Attorney, may from time to time
promulgate administrative rules and regulations.
C. The City Manager shall have the power to audit and examine all books
and records of cannabis businesses as well as persons engaged in the operation of
cannabis businesses, including both state and federal income tax returns, California sales
tax returns, or other evidence documenting the gross receipts of or the transaction prices
charged by a cannabis business or persons engaged in the operation of a cannabis
business, for the purpose of ascertaining the amount of tax, if any, required to be paid by
the provisions of this Chapter, and for the purpose of verifying any statements or any
item thereof when filed by any person pursuant to the provisions of this Chapter. If such
cannabis business or person, after written demand by the City Manager, refuses to make
available for audit, examination or verification such books, records, or equipment as the
City Manager requests, the City Manager may, after full consideration of all information
within the City Manager's knowledge concerning the cannabis business and its business
and activities of the person so refusing, make an assessment in the manner provided in
Section 3.32.130.
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D. The conviction and punishment of any person for failure to pay the
required tax shall not excuse or exempt such person from any civil action for the tax debt
unpaid at the time of such conviction. No civil action shall prevent a criminal
prosecution for any violation of the provisions of this Chapter or of any State law
requiring the payment of all taxes.
E. Any person violating any of the provisions of this Chapter or any
regulation or rule passed in accordance herewith, or knowingly or intentionally
misrepresenting to any officer or employee of the City any material fact in procuring the
a certificate or permit from the City as provided for in this Chapter shall be deemed guilty
of a misdemeanor.
332.130—Debts; Deficiencies; Assessments and Appeals.
A. The amount of any tax, penalties, and interest imposed by the provisions
of this Chapter shall be deemed a debt to the City and any person operating a cannabis
business, without having paid any applicable tax, penalties, and interest shall be liable in
an action in the name of the City in any court of competent jurisdiction for the amount of
the tax, and penalties and interest imposed on such cannabis business.
B. If the City Manager is not satisfied that any statement filed as required
under the provisions of this Chapter is correct, or that the amount of tax is correctly
computed, the City Manager may compute and determine the amount to be paid and
make a deficiency determination upon the basis of the facts contained in the statement or
upon the basis of any information in his or her possession or that may come into his or
her possession. One or more deficiency determinations of the amount of tax due for a
period or periods may be made. When a person discontinues engaging in a cannabis
business, a deficiency determination may be made at any time within three (3) years
thereafter as to any liability arising from engaging in such business whether or not a
deficiency determination is issued prior to the date the tax would otherwise be due.
Whenever a deficiency determination is made, notice shall be given to the person
concerned in the same manner as notices of assessment are given under Subsections C, D,
and E of this Section.
C. Under any of the following circumstances, the City Manager may make
and give notice of an assessment of the amount of tax owed by a person under this
Chapter:
1. If the person has not filed any statement or return required under
the provisions of this Chapter;
2. If the person has not paid any tax due under the provisions of this
Chapter;
3. If the person has not, after demand by the City Manager, filed a
corrected statement or return, or furnished to the City Manager adequate substantiation of
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the information contained in a statement or return already filed, or paid any additional
amount of tax due under the provisions of this Chapter;
4. If the City Manager determines that the nonpayment of any tax due
under this Chapter is due to fraud, a penalty of twenty-five percent (25%) of the amount
of the tax shall be added thereto in addition to penalties and interest otherwise stated in
this Chapter.
5. The notice of assessment shall separately set forth the amount of
any tax known by the City Manager to be due or estimated by the City Manager, after
consideration of all information within the City Manager's knowledge concerning the
business and activities of the person assessed, to be due under each applicable section of
this Chapter, and shall include the amount of any penalties or interest accrued on each
amount to the date of the notice of assessment.
D. The notice of assessment shall be served upon the person either by
handing it to him or her personally, or by a deposit of the notice in the United States mail,
postage prepaid thereon, addressed to the person at the address of the location of the
cannabis business appearing on the face of the business license issued under Chapter 5.04
of this Code, or to such other address as he or she shall register with the City Manager for
the purpose of receiving notices provided under this Chapter or Chapter 5.04; or, should
the person have no business license issued and should the person have no address
registered with the City Manager for such purpose, then to such person's last known
address. For the purposes of this section, a service by mail is complete at the time of
deposit in the United States mail.
E. Within ten (10) days after the date of service the person may apply in
writing to the City Manager for a hearing on the assessment. If application for a hearing
before the City is not made within the time herein prescribed, the tax assessed by the City
Manager shall become final and conclusive. Upon receipt of any such application for
hearing, the City Manager shall cause the matter to be set for hearing before a hearing
officer pursuant to the provisions of Section 1.28.090. At such hearing said applicant
may appear and offer evidence why the assessment as made by the City Manager should
not be confirmed and fixed as the tax due. Based upon the submission of such evidence
and the review of the City's files, the hearing officer shall issue a written notice and order
upholding, modifying or reversing the determination from which the appeal is taken. The
notice shall be given within fourteen (14) calendar days after the conclusion of the
hearing and shall state the reasons for the decision. The notice shall specify that the
decision is final and that any petition for judicial review shall be filed within ninety (90)
days from the date of the decision in accordance with Code of Civil Procedure Section
1094.6. If the hearing officer fails or refuses to act on an appeal within the fourteen (14)
day period, the appeal shall be deemed to have been denied by the hearing officer on the
fifteen (15th) calendar day.
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3.32.140—No Injunction/Writ or Mandate.
No injunction or writ of mandate or other legal or equitable process shall issue in any
suit, action, or proceeding in any court against this City or against any officer of the City
to prevent or enjoin the collection under this Chapter of any tax or any amount of tax
required to be collected and/or remitted.
3.32.150—Future Amendment to Cited Statute.
Unless specifically provided otherwise, any reference to a state or federal statute in this
Chapter shall mean such statute as it may be amended from time to time; provided, that
such reference to a statute herein shall not include any subsequent amendment thereto, or
to any subsequent change of interpretation thereto by a state or federal agency or court of
law, to the extent that such amendment or change of interpretation would require voter
approval under California law, or to the extent that such change would result in a tax
decrease. Only to the extent voter approval would otherwise be required or a tax
decrease would result, the prior version of the statute (or interpretation) shall remain
applicable. For any application or situation that would not require voter approval or
would not result in a decrease of a tax, provisions of the amended statute (or new
interpretation) shall be applicable to the maximum possible extent. To the extent that the
City's authorization to collect or impose any tax imposed under this Chapter is expanded
or limited as a result of changes in state or federal law, no amendment or modification of
this Chapter shall be required to conform the tax to those changes, and the tax shall be
imposed and collected to the full extent of the authorization up to the full amount of the
tax imposed under this Chapter.
3.32.160 — Application of Tax to Medical Cannabis and Recreational Cannabis
Businesses.
A. As of the effective date of this Chapter, the San Jacinto Municipal Cale
prohibits all forms of cannabis businesses, within the City, both medical and recreational.
However, a Statewide initiative measure has qualified for the November 8, 2016 ballot
[mown as the "Adult Use of Marijuana Act" (Proposition 64). If passed by California
voters, this measure would legalize the personal use of cannabis/marijuana for
recreational purposes, but would allow local agencies to reasonably regulate and tax
activities tied to recreational cannabis/marijuana. Further, Proposition 64 would require
cities to permit indoor cultivation of recreational and medical cannabis/marijuana, subject
to reasonable local regulation. Therefore, to a certain extent, Proposition 64 would
override the City's current prohibition on cannabis businesses, operating within the City.
B. Should Proposition 64 or any similar State law regarding cannabis be
passed, or should the San Jacinto Municipal Code be amended to authorize the operation
of cannabis businesses, within the City, whether to provide recreational or medical
cannabis, at wholesale or retail, the People of San Jacinto expressly intend for the tax
imposed herein to apply to such operations, on the same terms and conditions as set forth
in this Chapter.
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C. No provision of this Chapter shall be construed to authorize the operation
of any cannabis businesses, within the City unless mandated by future State law or
further amendment to the City's Municipal Code."
SECTION 2. Effective Date. Pursuant to California Constitution Article XIIIC
§(2)(b) and California Elections Code §9217, if a majority of the qualified voters voting
in the election on Measure "_" vote in favor of the adoption of such measure, this
ordinance shall be deemed valid and binding and shall be considered as adopted upon the
date that the vote is declared by the City Council, and shall go into effect ten (10) days
after that date.
SECTION 3. Severability. If any section, sentence, clause or phrase of this
ordinance is for any reason held to be invalid or unconstitutional by a decision of any
court of competent jurisdiction, such decision shall not affect the validity of the
remaining provisions of this ordinance. The People of the City of San Jacinto hereby
declare that they would have adopted this ordinance and each section, sentence, clause or
phrase thereof, irrespective of the fact that any one or more section, subsections,
sentences, clauses or phrases be declared invalid or unconstitutional.
SECTION 4. Certification/Summary. Following the City Clerk's certification
that the citizens of San Jacinto have approved this Ordinance, the Mayor shall sign this
Ordinance and the City Clerk shall cause the same to be entered in the book of original
ordinances of said City; and shall cause the same, or a summary thereof, to be published
as required by law.
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PASSED, APPROVED and ADOPTED by the People of the City of San Jacinto this
8th day of November, 2016.
Andrew Kotyuk
Mayor
ATTEST:
Angela Walton
City Clerk
APPROVED AS TO FORM:
Jeffrey S. Ballinger
City Attorney
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