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(a) Notwithstanding any other provision of this Article 30, any person subject to the Cannabis Business Tax engaging in Cannabis Business Activities in the City and engaging in no Cannabis Business Activities outside the City is subject to the Cannabis Business Tax on all non-exempt gross receipts.
(b) Notwithstanding any other provision of this Article 30, any person subject to the Cannabis Business Tax engaging in Cannabis Business Activities both in the City and outside the City shall determine their or their combined group’s gross receipts attributable to the City from Cannabis Business Activities under Section 956.1 of Article 12-A-1. For purposes of this Section 3004(b), “gross receipts” as used in Section 956.1 of Article 12-A-1 shall mean all of the person or combined group’s non-exempt gross receipts from Cannabis Business Activities.
(Added by Proposition D, 11/6/2018, Eff. 12/14/2018, Oper. 1/1/2021)
(a) For purposes of this Article 30, gross receipts shall not include receipts from the Retail Sale of Medicinal Cannabis.
(b) An organization that is exempt from income taxation by Chapter 4 (commencing with Section 23701) of Part 11 of Division 2 of the California Revenue and Taxation Code or Subchapter F (commencing with Section 501) of Chapter 1 of Subtitle A of the Internal Revenue Code of 1986, as amended, as qualified by Sections 502, 503, 504, and 508 of the Internal Revenue Code of 1986, as amended, shall be exempt from taxation under this Article 30, only so long as those exemptions continue to exist under state or federal law.
(c) For purposes of this Article 30, gross receipts shall not include receipts from business activities if, and only so long as and to the extent that, the City is prohibited from taxing such receipts under the Constitution or laws of the United States or under the Constitution or laws of the State of California.
(d) For only so long as and to the extent that the City is prohibited from imposing the Cannabis Business Tax, any person upon whom the City is prohibited under the Constitution or laws of the State of California or the Constitution or laws of the United States from imposing the Cannabis Business Tax shall be exempt from the Cannabis Business Tax.
(Added by Proposition D, 11/6/2018, Eff. 12/14/2018, Oper. 1/1/2021)
(a) Persons subject to the Cannabis Business Tax shall file returns at the same time and in the same manner as returns filed for the gross receipts tax (Article 12-A-1), including the rules for combined returns under Section 956.3, as amended from time to time.
(b) If a person is subject to the Cannabis Business Tax but is not required to file a gross receipts tax return, such person or combined group’s Cannabis Business Tax return shall be filed at the same time and in the same manner as if such person or combined group were required to file a gross receipts tax return.
(c) For purposes of this Article 30, a lessor of residential real estate is treated as a separate person with respect to each individual building in which it leases residential real estate units, notwithstanding Section 6.2-15 of Article 6, as amended from time to time, or subsection (a) of this Section 3006. This subsection (c) applies only to leasing residential real estate units within a building, and not to any business activity related to other space, either within the same building or other buildings, which is not residential real estate. The Tax Collector is authorized to determine what constitutes a separate building and the number of units in a building.
(Added by Proposition D, 11/6/2018, Eff. 12/14/2018, Oper. 1/1/2021)
The Tax Collector may, in the Tax Collector’s reasonable discretion, independently establish a person or combined group’s gross receipts attributable to the City from Cannabis Business Activities and establish or reallocate gross receipts among related entities so as to fairly reflect the gross receipts attributable to the City from Cannabis Business Activities of all persons and combined groups.
(Added by Proposition D, 11/6/2018, Eff. 12/14/2018, Oper. 1/1/2021)
(a) This Article 30 is intended to authorize application of the Cannabis Business Tax in the broadest manner consistent with its provisions and with the California Constitution, the United States Constitution, and any other applicable provision of federal or state law.
(b) The Cannabis Business Tax imposed by this Article 30 is in addition to all other City taxes, including the gross receipts tax imposed by Article 12-A-1, as amended from time to time. Accordingly, by way of example and not limitation, persons subject to both the Cannabis Business Tax and the gross receipts tax shall pay both taxes. Persons exempt from either the gross receipts tax or the Cannabis Business Tax, but not both, shall pay the tax from which they are not exempt.
(Added by Proposition D, 11/6/2018, Eff. 12/14/2018, Oper. 1/1/2021)
Except as otherwise provided under this Article 30, the Cannabis Business Tax Ordinance shall be administered pursuant to Article 6 of the Business and Tax Regulations Code, as amended from time to time.
(Added by Proposition D, 11/6/2018, Eff. 12/14/2018, Oper. 1/1/2021)
Proceeds from the Cannabis Business Tax shall be deposited in the City’s General Fund and may be spent for unrestricted general revenue purposes of the City.
(Added by Proposition D, 11/6/2018, Eff. 12/14/2018, Oper. 1/1/2021)
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