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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.
[Ord. No. 594, Section 1, 12/12/18.]
This Chapter authorizes the maximum business tax rate as identified in Section 3.60.030 above. The City Council may, by ordinance, upwardly or downwardly adjust the rate of the tax imposed by this Chapter 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 Adelanto 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 upward adjustment of the tax rate applicable to any or all classes of cannabis business, provided the rate does not exceed the maximum set forth by this voter-approved Chapter;
B. The restoration 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;
C. 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;
D. 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
E. 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.
[Ord. No. 594, Section 1, 12/12/18.]
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 state law and this Code.
[Ord. No. 594, Section 1, 12/12/18.]
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 customer or client of a cannabis business.
[Ord. No. 594, Section 1, 12/12/18.]
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 3.60.030 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 3.60.050.
B. The Tax Administrator 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 Tax Administrator 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 XIIIB, 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.
[Ord. No. 594, Section 1, 12/12/18.]
The Tax shall be due and payable as follows:
A. The tax established by this Chapter shall be collected four (4) times a year on a quarterly basis. Each person owing tax shall prepare and file a tax return to the Tax Administrator setting out the total amount of tax owed for the preceding reporting period during which the tax was in effect. The return shall be filed by the end of the month following the applicable reporting period, in accordance with the following table, or as otherwise provided for by the Tax Administrator. At the time the tax return is filed, the full amount of the tax owed for the preceding reporting period shall be remitted to the Tax Administrator.
Reporting Period
|
Period End Date
|
Due Date
|
January – March | March 31 | April 30 |
April – June | June 30 | July 31 |
July – September | September 30 | October 31 |
October – December | December 31 | January 31 |
B. All tax returns shall be completed on forms provided by the Tax Administrator.
C. Tax returns and payments for all outstanding taxes owed the City are immediately due to the Tax Administrator within 15 days after cessation of business for any reason.
D. Whenever any payment, statement, report, request or other communication received by the Tax Administrator 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 Tax Administrator 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 Tax Administrator 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 Tax Administrator 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.
[Ord. No. 594, Section 1, 12/12/18; Ord. No. 616, Section 3, 9/9/20.]
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 25 percent 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 25 percent 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.
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, 2019 or the first date on which the cannabis business first engaged in business in the City, whichever date occurred last, together with applicable penalties and interest calculated in accordance with Subsection (A) of this Section.
D. The Tax Administrator may waive the first and second penalties of 25 percent each imposed upon any person if:
1. The person provides evidence satisfactory to the Tax Administrator 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 Tax Administrator 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 24 month period.
[Ord. No. 594, Section 1, 12/12/18.]
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