HomeMy WebLinkAboutCC RES 2018-89RESOLUTION NO. 2018-89
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
PALM DESERT, CALIFORNIA, SETTING CANNABIS
BUSINESS TAX RATES
WHEREAS, on October 12, 2017, the Palm Desert City Council ("City Council") of
Palm Desert ("City") approved Ordinance No. 1329 allowing for commercial cannabis
related land -uses including cultivation, manufacturing, testing and research, distribution,
delivery, and retail sales of cannabis within the City; and
WHEREAS, on July 12, 2018, the City Council at a regularly held City Council
meeting adopted Resolution No. 2018-61 calling for the placement of a General Tax
Measure on the ballot for the November 6, 2018, General Municipal Election for the
submission to qualified voters of a proposed ordinance establishing a tax on cannabis
businesses operating within the City of Palm Desert ("Cannabis Tax Measure"); and
WHEREAS, the Cannabis Tax Measure passed by a majority vote of the People
on November 6, 2018; and
WHEREAS, the Cannabis Tax Measure added Chapter 3.50 Cannabis Business
Tax to the City of Palm Desert Municipal Code ("Municipal Code"); and
WHEREAS, Municipal Code Chapter 3.50 provides that tax rates can be set at a
maximum of (1) twenty dollars ($20) per square foot of space utilized in connection with
cannabis cultivation business, (2) three ($0.03) cents for each one dollar ($1) of gross
receipts, or a fractional part thereof, for cannabis manufacturing businesses, and (3)
fifteen ($0.15) cents for each one dollar ($1) of gross receipts, or a fractional part thereof
for cannabis retail businesses; and
WHEREAS, as allowed by Proposition 218, Municipal Code Chapter 3.50 further
provides that the City Council may impose the tax detailed above at a lower rate without
a vote of the People; and
WHEREAS, at the regularly held City Council meeting on July 12, 2018, the City
Council discussed initially setting the tax rates at (1) thirteen dollars ($13) per square foot
of space utilized in connection with cannabis cultivation businesses, (2) two ($0.02) cents
for each dollar ($1) of gross receipts for cannabis manufacturing businesses, and (3) ten
($0.10) cents for each dollar ($1) of gross receipts for cannabis retail businesses; and
WHEREAS, at the regularly held City Council meeting on July 12, 2018, the City
Council agreed to set initial cannabis business tax rates by separate Resolution in the
event the Cannabis Tax Measure passed; and
WHEREAS, the City Council now wishes to set the initial tax rates for cannabis
businesses operating within the City by Resolution.
WHEREAS, the tax rates for cannabis businesses will be effective beginning
January 1, 2019; and
RESOLUTION NO. 2018-89
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF PALM DESERT,
CALIFORNIA, DOES HEREBY RESOLVE, DECLARE, DETERMINE, AND ORDER
AS FOLLOWS:
SECTION 1. Incorporation of Recitals. The Recitals set forth above are true and
correct and are incorporated into this Resolution by this reference.
SECTION 2. Cannabis Business Tax Rates. Pursuant to Section 3.50.030 and
3.50.050 of the Municipal Code, the City Council of the City of Palm Desert hereby sets
the tax rates for cannabis businesses as follows:
A. Thirteen dollars ($13) per square foot of space utilized in connection with
cannabis cultivation businesses.
B. Two ($0.02) cents for each $1.00 of gross receipts for cannabis
manufacturing businesses; and
C. Ten ($0.10) cents for each $1.00 of gross receipts for cannabis retail
businesses.
SECTION 3. CEQA. The City Council hereby finds and determines that this
Resolution relates to organizational or administrative activities of governments that will
not result in direct or indirect physical changes in the environment, and therefore is not a
project within the meaning of the California Environmental Quality Act ("CEQA") and the
State CEQA Guidelines, Section 15378(b)(5).
SECTION 4. Severabilitv. 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 the 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.
SECTION 5. Effective Date of Resolution. This Resolution shall take effect
January 1, 2019.
PASSED, APPROVED AND ADOPTED by the City Council of the City of Palm
Desert, California, at its regular meeting held on this 13th day of December 2018.
AYES: HARNIK, JONATHAN, KELLY, NESTANDE, and WEBER
NOES: NONE
ABSENT: NONE
ABSTAIN: NONE
3
RESOLUTION NO. 2018- 89
SUSAN MARIE WEBER, MAYOR
ATTEST:
igA RCHELLE D, KLASSEN, CITY CLERK
CITY OF PALM DESERT, CALIFORNIA
APPROVED AS TO FORM:
(X)
ROBERT W. RAIABAVES, CITY ATTORNEY