(A) Applies to all commercial cannabis businesses. Every person who is engaged in business as a commercial cannabis business within the city shall pay a commercial cannabis business tax at the rates set forth in this section. Such tax is payable regardless of whether the commercial cannabis business has been issued a business license or commercial cannabis permit to operate lawfully in the city or is operating unlawfully. The city's acceptance of a commercial cannabis business tax payment from a commercial cannabis business operating illegally shall not constitute the city's approval or consent to such illegal operations.
(B) Maximum tax rate. The maximum rate of the commercial cannabis business tax shall be calculated as follows:
(1) Retail sale. For every person engaged in retail sale, the tax rate shall be 7% of gross receipts, or fractional part thereof, generated by the commercial cannabis business, subject to adjustment by the City Council pursuant to § 3.38.040
.
(2) Manufacturing and distribution. For every person engaged in manufacturing or distribution, the tax rate shall be 5% of gross receipts, or fractional part thereof, generated by the commercial cannabis business, subject to adjustment by the City Council pursuant to § 3.38.040
.
(3) Testing laboratory. For every person engaged in the operation of a testing laboratory, the tax rate shall be 2% of gross receipts, or fractional part thereof, generated by the testing laboratory, subject to adjustment by the City Council pursuant to § 3.38.040
.
(4) Microbusiness. For every person engaged in the operation of a microbusiness, the tax rate for the retail sale portion of the commercial cannabis business shall be 7% of gross receipts, or fractional part thereof, generated by retail sales at the commercial cannabis business, and the tax rate for the manufacturing and distribution portions of the commercial cannabis business shall be 5% of gross receipts, or fractional part thereof, generated by manufacturing and distribution, subject to adjustment by the City Council pursuant to § 3.38.040
.
(5) Illegal businesses. For every person engaged in the operation of an illegal commercial cannabis business, the tax rate shall be 15% of gross receipts, or fractional part thereof, generated by the commercial cannabis business.
(C) Registration and business license required. Persons subject to the commercial cannabis business tax shall register with the city pursuant to § 3.38.050. They shall also be required to obtain a business license pursuant to Title 5 of this code.
(Ord. 3359 § 2, 2023; Ord. 3352 § 1 (part), 2022.)