The following words and phrases shall have the meanings set forth below when used in this Chapter:
BUSINESS. All activities engaged in or caused to be engaged in within the City, including any commercial or industrial enterprise, trade, profession, occupation, vocation, calling, or livelihood, whether or not carried on for gain or profit, but shall not include the services rendered by an employee to his or her employer.
CANNABIS. Except as specified herein, all parts of the Cannabis sativa Linnaeus, Cannabis indica, or Cannabis ruderalis, whether growing or not; the seeds thereof; the resin, whether crude or purified, extracted from any part of the plant; and every compound, manufacture, salt, derivative, mixture, or preparation of the plant, its seeds, or resin. CANNABIS also means the separated resin, whether crude or purified, obtained from cannabis. CANNABIS does not include the mature stalks of the plant, fiber produced from the stalks, oil or cake made from the seeds of the plant, any other compound, manufacture, salt, derivative, mixture, or preparation of the mature stalks (except the resin extracted therefrom), fiber, oil, or cake, or the sterilized seed of the plant which is incapable of germination. For the purpose of this Chapter, CANNABIS does not mean "industrial hemp" as defined by § 11018.5 of the Health and Safety Code.
CANNABIS CONCENTRATE. Cannabis that has undergone a process to concentrate one or more active cannabinoids, thereby increasing the product's potency. Resin from granular trichomes from a cannabis plant is a concentrate for purposes of this division. A cannabis concentrate is not considered food, as defined by § 109935 of the Cal. Health and Safety Code, or drug, as defined by § 109925 of the Cal. Health and Safety Code.
CANNABIS PRODUCTS. Cannabis that has undergone a process to concentrate one (1) or more active cannabinoids, thereby increasing the product's potency. Resin from granular trichomes from a cannabis plant is a concentrate for purposes of this Subdivision. A cannabis concentrate is not considered food, as defined by § 109935 of the Cal. Health and Safety Code, or drug, as defined by § 109925 of the Cal. Health and Safety Code.
CANOPY. All areas occupied by any portion of a cannabis plant, inclusive of all vertical planes, whether contiguous or noncontiguous on any one site. The plant canopy does not need to be continuous on any premise in determining the total square footage which will be subject to tax.
CANNABIS BUSINESS OR COMMERCIAL CANNABIS BUSINESS. Any business br operation which engages in medicinal or adult-use commercial cannabis activity whether or not carried on for gain or profit.
CANNABIS BUSINESS TAX OR MARIJUANA BUSINESS TAX. The tax due pursuant to this Chapter for engaging in commercial cannabis or marijuana business n the City.
COMMERCIAL CANNABIS CULTIVATION. Cultivation conducted by, for, or as part of a commercial cannabis business.
COMMERCIAL CANNABIS BUSINESS PERMIT. A regulatory permit issued by he City of Culver City pursuant to Chapter 11.17 to a commercial cannabis business, and is required before any commercial cannabis activity may be conducted in the City. The initial permit and annual renewal of a commercial cannabis business permit is made expressly contingent upon the business' ongoing compliance with all of the requirements of the Culver City Municipal Code and any regulations adopted by the City governing the commercial cannabis activity at issue.
CULTIVATION. Any activity involving the planting, growing, harvesting, drying, curing, grading, or trimming of cannabis.
DELIVERY. The commercial transfer of cannabis or cannabis products to la customer. Delivery also includes the use by a retailer of any technology platform owned and controlled by the retailer.
DISTRIBUTION. The procurement, sale, and/or transport of cannabis and cannabis products between licensees.
EMPLOYEE. Each person who renders any service, with or without compensation, for the owner, permittee, or agent of either an owner or permittee of a commercial cannabis business. For purposes of this Chapter, the term employee shall include part-time, full-time, temporary, or permanent employees.
ENGAGED IN BUSINESS AS A CANNABIS BUSINESS. The commencing, conducting, operating, managing or carrying on of a cannabis business and the exercise of corporate or franchise powers, whether done as owner, or by means of an officer, agent, manager, employee, or otherwise, whether operating from a fixed location in the City or coming into the City from an outside location to engage in such activities. A person shall be deemed engaged in business within the City if:
1. Such person or person's employee maintains a fixed place of business within the City for the benefit or partial benefit of such person;
2. Such person or person's employee owns or leases real property within the City for business purposes;
3. Such person or person's employee regularly maintains a stock of tangible personal property in the City for sale in the ordinary course of business;
4. Such person or person's employee regularly conducts solicitation of business within the City;
5. Such person or person's employee performs work or renders services in the City; and
The foregoing specified activities shall not be a limitation on the meaning of "engaged in business."
EVIDENCE OF DOING BUSINESS. Evidence such as, without limitation, use of signs, circulars, cards or any other advertising media, including the use of internet or telephone solicitation, or representation to a government agency or to the public that such person is engaged in a cannabis business in the City.
FISCAL YEAR. July 1 through June 30 of the following calendar year.
GROSS RECEIPTS. Except as otherwise specifically provided, whether designated a sales price, royalty, rent, commission, dividend, or other designation, the total amount (including all receipts, cash, credits and property of any kind or nature) received or payable for sales of goods, wares or merchandise or for the performance of any act or service of any nature for which a charge is made or credit allowed (whether such service, act or employment is done as part of or in connection with the sale of goods, wares, merchandise or not), without any deduction therefrom on account of the cost of the property sold, the cost of materials used, labor or service costs, interest paid or payable, losses or any other expense whatsoever. However, the following shall be excluded from gross receipts:
1. Cash discounts where allowed and taken on sales;
2. Any tax required by law to be included in or added to the purchase price and collected from the consumer or purchaser;
3. Such part of the sale price of any property returned by purchasers to the seller as refunded by the seller by way of cash or credit allowances or return of refundable deposits previously included in gross receipts;
4. Receipts derived from the occasional sale of used, obsolete or surplus trade fixtures, machinery or other equipment used by the taxpayer in the regular course of the taxpayer's business;
5. Cash value of sales, trades or transactions between departments or units of the same business;
6. Whenever there are included within the gross receipts amounts which reflect sales for which credit is extended and such amount proved uncollectible in a subsequent year, those amounts may be excluded from the gross receipts in the year they prove to be uncollectible; provided, however, if the whole or portion of such amounts excluded as uncollectible are subsequently collected they shall be included in the amount of gross receipts for the period when they are recovered;
7. Transactions between a partnership and its partners;
8. Receipts from services or sales in transactions between affiliated corporations. An affiliated corporation is a corporation:
a. The voting and non-voting stock of which is owned at least eighty percent (80%) by such other corporation with which such transaction is had; or
b. Which owns at least eighty percent (80%) of the voting and non-voting stock of such other corporation; or
c. At least eighty percent (80%) of the voting and non-voting stock of which is owned by a common parent corporation which also has such ownership of the corporation with which such transaction is had.
9. Transactions between a limited liability company and its member(s), provided the limited liability company has elected to file as a Subchapter K entity under the Internal Revenue Code and that such transaction(s) shall be treated the same as between a partnership and its partner(s) as specified in Subsection 7. above;
10. Receipts of refundable deposits, except that such deposits when forfeited and taken into income of the business shall not be excluded when in excess of one dollar;
11. Amounts collected for others where the business is acting as an agent or trustee and to the extent that such amounts are paid to those for whom collected. These agents or trustees must provide the finance department with the names and the addresses of the others and the amounts paid to them. This exclusion shall not apply to any fees, percentages, or other payments retained by the agent or trustees.
MANUFACTURE. To compound, blend, extract, infuse, or otherwise make or prepare a cannabis product.
NURSERY. A person that produces only clones, immature plants, seeds, and other agricultural products used specifically for the planting, propagation, and cultivation of cannabis.
PERSON. An individual, firm, partnership, joint venture, association, corporation, limited liability company, estate, trust, business trust, receiver, syndicate, or any other group or combination acting as a unit, whether organized as a nonprofit or for-profit entity, and includes the plural as well as the singular number.
SALE. Includes any sale, exchange, or barter or other transaction for any consideration.
SQUARE FOOT OR SQUARE FOOTAGE. The maximum amount of canopy for commercial cannabis cultivation authorized by a City permit issued to a person engaging in commercial cannabis business shall be the basis for the tax base for cultivation.
STATE. The State of California.
STATE LICENSE OR LICENSE. A license issued by the State of California, or one of its departments or divisions, pursuant to California Business & Professions Code §§ 26000, et seq. and any subsequent State of California legislation regarding the same, to engage in commercial cannabis activity.
TAX ADMINISTRATOR. The Chief Financial Officer of the City of Culver City, his or her designee(s), or any other City officer charged with the administration of the provisions of this Chapter.
TESTING LABORATORY. A facility, entity, or site in the state that offers or performs testing of cannabis or cannabis products and that is both of the following:
1. Accredited by an accrediting body that is independent from all other persons involved in the cannabis industry in the state; and
2. Licensed by the State of California.
(Ord. No. 2018-010 § 1 (part))