(A) Beginning January 1, 2023, there is imposed upon each person who is engaged in business as a cannabis business a cannabis business tax regardless if the business has been issued a permit to operate lawfully in the city or is operating unlawfully.
(B) The City Council may, by resolution or ordinance, adjust the rate of the cannabis business tax. However, in no event may the City Council set any adjusted rate that exceeds the maximum rate calculated pursuant to division (C) of this section for the date on which the adjusted rate will commence.
(C) The maximum rate shall be calculated as follows:
(1) For every person who is engaged in commercial cannabis cultivation in the city:
(a) Through January 1, 2023, the maximum rate shall be:
1. Ten dollars annually per square foot of canopy space in a facility that uses exclusively artificial lighting.
2. Ten dollars annually per square foot of canopy space in a facility that uses a combination of natural and supplemental artificial lighting.
3. Ten dollars annually per square foot of canopy space in a facility that uses no artificial lighting.
4. Ten dollars annually per square foot of canopy space for any nursery.
(b) On January 1, 2024, and on each January 1 thereafter, the maximum annual tax rate per square foot of each type of canopy space shall increase by the percentage change between January of the calendar year prior to such increase and January of the calendar year of the increase in the consumer price index (“CPI”) for all urban consumers in the Tulare County area as published by the United States Government Bureau of Labor Statistics if available, or the closest geographically available data as determined by Council. However, no CPI adjustment resulting in a decrease of any tax imposed by this subsection shall be made.
(2) For every person who engages in the operation of a testing laboratory, the maximum tax rate shall not exceed 10% of gross receipts.
(3) For every person who engages in the retail sales of cannabis as a retailer (dispensary) or non-store front retailer (delivery business), or microbusiness (retail sales activity) the maximum tax rate shall not exceed 10% of gross receipts.
(4) For every person who engages in a cannabis distribution business, the maximum tax rate shall not exceed 10% of gross receipts.
(5) For every person who engages in a cannabis manufacturing, processing, or microbusiness (non-retail activity) or any other type of cannabis business not described in division (C)(1), (2), (3) or (4), the maximum tax rate shall not exceed 10% of gross receipts.
(Ord. 2022-15, passed 11-8-2022)