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Home My WebLink AboutResolution No. 4059 - Cannabis Tax RateResolution No. 4059 STATE OF CALIFORNIA) COUNTY OF RIVERSIDE) ss CITY OF SAN JACINTO ) RESOLUTION NO. 4059 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 ("City") approved the adoption of Ordinance 16-08, adding Chapter 3.32 to the San Jacinto Municipal Code 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 rate of up to fifteen (15) cents for each $1.00 of gross receipts or fractional part thereof, generated by such activities; 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, on January 3, 2017, the City Council adopted Ordinance 16-16 which set the current tax rates; and WHEREAS, on June 18, 2019, the City Council passed and adopted Ordinance 19-12 which amended Chapter 3.32 including removing the taxation rates from Chapter 3.32 and authorizing the City Council to establish tax rates by resolution; and WHEREAS, on June 4, 2019, pursuant to the authority set forth in Section 3.32.050 of the San Jacinto Municipal Code, the City Council authorized by Resolution No. 3755 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, Page 1 of 5 Resolution No. 4059 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. WHEREAS, on October 15, 2024, pursuant to the authority set forth in Section 3.32.050 of the San Jacinto Municipal Code, the City Council authorized by Resolution No. 4046 the imposition of a general tax on cannabis activities operating within the City of San Jacinto at the following rates for a Dispensary and Microbusinesses as defined in Title 17 of the San Jacinto Municipal Code: 1. Dispensary (Adult Recreational or Medical): Ten cents ($0.10) 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. Microbusinesses: Ten cents ($0.10) 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. WHEREAS, on January 1, 2025, Resolution No. 4046 became effective. NOW, THEREFORE, the City Council of the City of San Jacinto hereby finds, determines, and resolves as follows: SECTION 1. The recitals set forth above are true and correct and are incorporated into this Resolution by this reference. SECTION 2. 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 for a Dispensary and Microbusinesses as defined in Title 17 of the San Jacinto Municipal Code: Page 2 of 5 Resolution No. 4059 • 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). 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 3. 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 4. 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 5. This Resolution supersedes and voids all prior resolutions and other Council actions which are inconsistent with its terms. SECTION 6. 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 7. This Resolution shall be effective as of April 1, 2025. The Clerk shall certify the adoption of this Resolution. Page 3of5 Resolution No. 4059 PASSED, APPROVED AND ADOPTED this 4t" day of February 2025 by the following vote - Ayes: Sanchez, Ruiz, Ledezma, Vandever Nays: Ayala Absent: None Abstain: None ATTEST: is Espinoza, City Clerk APPROVED AS TO FORM: BEST, BEST & KRIEGER LLP Craig P. Hayes, orney CITY OF SAN JACINTO: Z //,, �—'- �/� Valerie Vandever, Mayor Page 4 of 5 Resolution No. 4059 CERTIFICATION STATE OF CALIFORNIA) COUNTY OF RIVERSIDE) ss CITY OF SAN JACINTO) I, Julia Espinoza, City Clerk of the City of San Jacinto, DO HEREBY CERTIFY that the foregoing Resolution 4059 was passed, approved, and adopted at the Regular Meeting of the San Jacinto City Council held on the 4th day of February 2025 by the following vote: Ayes: Sanchez, Ruiz, Ledezma, Vandever Nays: Ayala Absent: None Abstain: None WITNESS MY HAND AND OFFICIAL SEAL this 4th day of February 2025 Jul' Spinoza, City Clerk Page 5of5