This subchapter authorizes the maximum business tax rate as identified in § 37.91 above. The City Council may, by ordinance, upwardly or downwardly adjust the rate of the tax imposed by this subchapter and may otherwise repeal or amend this subchapter 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 subchapter. The People of the City of Santa Paula 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 subchapter;
(B) The restoration of the tax to a rate that is no higher than the maximum set by this voter-approved subchapter, 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 subchapter;
(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 subchapter, 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. 1261, passed 11-6-18)