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(A) Every person engaged in a cannabis business shall pay an annual business license tax of up to $.10 for each $1 of gross receipts, regardless whether the city has authorized the cannabis business.
(B) The tax rate shall be set by resolution of the City Council. The City Council may, in its discretion, implement such cannabis business tax rate it deems appropriate, and may by resolution increase or lower such tax rate from time to time, provided that the cannabis business tax shall not exceed $.10 for each $1 of gross receipts.
(C) Any tax adopted by the City Council pursuant to this chapter shall apply only to those cannabis businesses operating outside the scope of a development agreement approved by the City Council. However, the tax may apply to all cannabis businesses in the event the City Council cancels the Cannabis Pilot Program.
(D) The Collector shall establish reporting periods for the periodic collection of gross receipts. The reporting period may fall under yearly, quarterly, or monthly reporting, or any reasonable reporting period established by the Collector.
(E) Failure to pay the cannabis business tax shall be subject to penalties, interest charges, and assessments as the City Council may establish by resolution, and the city may use any and all code enforcement remedies available at law to collect such payments.
(F) The payment of the cannabis business tax 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 section shall be applied or construed as authorizing the sale of cannabis.
(G) The Collector or his or her designee shall annually audit any cannabis business taxes imposed by this section to verify that tax revenues have been properly expended in accordance with the law.
(H) The cannabis business tax is not a sales tax and shall not be assessed as such.
(I) This section was submitted to the qualified voters of the city for approval. Any amendment to the maximum tax rate therefore may 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 provisions of this section as the City Council deems in the best interest of the city. The City Council or City Manager may promulgate rules, regulations and procedures to implement this section and to ensure the efficient and timely collection of any taxes or any related penalties imposed by this section.
(Ord. 2018-008, passed 12-11-18)