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Home My WebLink AboutResolution - 3755STATE OF CALIFORNIA ) RESOLUTION No. 3755 COUNTY OF RIVERSIDE) ss CITY OF SAN JACINTO ) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN JACINTO, CALIFORNIA SETTING THE TAX RATES ON CANNABIS ACTIVITIES OPERATING WITHIN THE CITY OF SAN JACINTO. WHEREAS, on November 8, 2016, the voters of the City of San Jacinto approved the adoption of Ordinance 16-08. adding Chapter 3.32 to the San Jacinto Municipal Code in order to establish a general tax on cannabis activities operating within the City of San Jacinto should such activities be permitted in the City; and WHEREAS, Section 3.32.010 of the San Jacinto Municipal Code authorizes a general tax on cannabis/ activities at the maximum voter -approved rates of: (i) up to fifteen (15) cents for each $1.00 of gross receipts or fractional part thereof, generated by such activities, and (ii) up to fifty dollars ($50.00) per square foot of space utilized in connection with the cultivation/manufacturing of cannabis or cannabis -infused products; and WHEREAS, Section 3.32.050 of the San Jacinto Municipal Code authorizes the City Council to impose this general tax at lower rates than the voter -approved maximum without a further vote of the People; and WHEREAS, Section 3.32.050 of the San Jacinto Municipal Code authorizes the City Council to interperaste or clarify 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 Chapter 3.32; and WHEREAS, on January 3, 2017, the City Council adopted Ordinance 16-16 which set the current tax rates; and WHERAS, on April 2, 2019, the City Council introduced Ordinance 19-12 which would amend Chapter 3.32 including removing the taxation rates from Chapter 3.32 and authorize the City Council to establish tax rates by Resolution; and WHEREAS, on June 18, 2019, the City Council passed and adopted Ordinance 19-12 which would amend Chapter 3.32 including removing the taxation rates from Chapter 3.32 and authorize the City Council to establish tax rates by Resolution; and WHEREAS, the City Council desires to set the tax rates for cannabis activities at lower rates than the voter -approved maximum, as more particularly set forth below. WHEREAS, all other legal prerequisites to the adoption of this Resolution have occurred. NOW, THEREFORE, BE IT RESOLVED, ordered and determined by the City Council of the City of San Jacinto: Section 1. Pursuant to the authority set forth in Section 3.32.050 of the San Jacinto Municipal Code, the City Council hereby authorizes the imposition of a general tax on cannabis activities operating within the City of San Jacinto at the following rates based on the proposed Land Use Permit pursuant to Title 17 of the San Jacinto Municipal Code: 1. Dispensary (Adult Recreational or Medical): Fifteen cents ($0.15) for each one dollar ($1.00) of gross receipts or fractional part thereof on any retail sale of cannabis or cannabis products (as defined in Section 3.32.030). 2. Outdoor Cultivation: Five dollars ($5.00) per square foot of cannabis related activity licenses under a state license as certified by a Certified Civil or Professional Engineer. Such area shall be calculated by enclosing the extreme limits of all cannabis associated activities within the site (cultivation, processing, and distribution) within a single continuous perimeter composed of the no more than eight lines intersecting at right angles. 3. Indoor: Cultivation, Distribution, Manufacturing, and Testing Laboratories: Ten dollars ($10.00) per square foot of gross building footprint utilized for any cannabis related activity (including ancillary office and other administrative areas) excluding retail sales (see #1 above - Dispensary). 4. Microbusinesses: Fifteen cents ($0.15) for each one dollar ($1.00) of gross receipts or fractional part thereof on any retail sale of cannabis or cannabis products PLUS Ten dollars ($10.00) per square foot of gross building footprint utilized for any cannabis related activity (including ancillary office and other administrative areas) excluding retail sales. Section 2. Except as otherwise amended herein, all provisions of Chapter 3.32 of the San Jacinto Municipal Code shall apply to the taxation of cannabis activities operating in the City of San Jacinto. Section 3. Pursuant to Section 3.32.015 of the San Jacinto Municipal Code, the City Council may, by future Resolution, adjust the general tax rates set forth herein, upwardly or downwardly, without a further vote of the People; provided that the adjusted rates are no higher than the voter -approved maximum rates set forth in Section 3.32.010. Section 4. Nothing in this Resolution authorizes any cannabis activity or use in any zone of the City. This ordinance solely establishes the tax rate for various cannabis uses which may be permitted or prohibited through other action of the San Jacinto City Council. This Resolution shall not be read to permit any personal, medical, or commercial cannabis activity in any zone absent other action by the City Council. Section 5. If any section, subsection, sentence, clause, phrase or word of this Resolution is for any reason held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Resolution. The City Council hereby declares that it would have adopted this Resolution, and each and every section, subsection, sentence, clause, or phrase not declared invalid or unconstitutional without regard to whether any portion or the Resolution would be subsequently declared invalid or unconstitutional. Section 6. This Resolution supersedes and voids all prior ordinances, resolutions, and other Council actions which are inconsistent with its terms. Section 7. This Resolution shall take effect concurrent with Ordinance 19-12 Section 8. Custodian of Records. The documents and materials that constitute the record of proceedings on which these findings are based are located at the City Clerk's office located at 595 S. San Jacinto Avenue, San Jacinto, CA 92583. The custodian for these records is the City Clerk. Section 9. Severability. If any provision of this Resolution or the application thereof to any person or circumstance is held invalid, such invalidity shall not affect other provisions or applications of this Resolution which can be given effect without the invalid provision or application, and to this end the provisions of this Resolution are severable. The City Council hereby declares that it would have adopted this Resolution irrespective of the invalidity of any particular portion thereof. PASSED, APPROVED and ADOPTED at a regular meeting of the City Council on the 4th day of June 2019, by the following vote: AYES: Kotyuk, Ruiz, Utz NAYS: Ledezma, Lopez ABSENT: None ABSTAIN: None CITY OF SAN JACI )Z Russell Utz, Ma r ATTEST: IWalton, City Clerk APPROVED AS TO FORM: BEST B . ST & KRIEGER LLP f Mi ael J. Maurer, City Attorney El 0 CERTIFICATION State of California ) County of Riverside) ss City of San Jacinto) I, Angela Walton, duly appointed City Clerk of the City of San Jacinto, do hereby certify that the foregoing Resolution No. 3755 was duly passed, approved and adopted at a regular meeting of the City Council of the City of San Jacinto on the 4th day of June 2019 by the following vote: AYES: Kotyuk, Ruiz, Utz NAYS: Ledezma, Lopez ABSENT: None ABSTAIN: None WITNESS MY HAND AND OFFICIAL SEAL this 4th day of June 2019. A a alto , City Clerk City an Jacinto