Alturas Municipal Code Ch. 13.3 Marijuana Collective/Cooperative Business Tax

Every person engaged in operating or conducting a marijuana collective/cooperative shall possess a business license as provided by Chapter 13 Licenses, and pay a business tax at a rate of ten percent of gross receipts.

(Ord. No. 506, § 1, 2-23-2016)

For purposes of this chapter, the following words shall have the following meaning:

A "marijuana collective or cooperative" means any activity regulated or permitted by Chapter 13.2 of this code, or California Health and Safety Code section 11362.5 et seq., as may be amended from time to time.

"Proceeds" means gross receipts of any kind, including without limitation, membership dues; the value of in-kind contributions; reimbursements provided by members regardless of form; any payments made; and anything else of value obtained by a marijuana collective/cooperative.

(Ord. No. 506, § 1, 2-23-2016)

All taxpayers subject to this chapter must pay the full tax imposed by this chapter regardless of any rebate, exemption, incentive, or other reduction set forth elsewhere in this code, except as required by California or federal law. Failure to pay the tax shall be subject to penalties, interest charges, and assessments as the city council may establish, and the city may use any or all other code enforcement remedies provided in this code. No provision in this code can lower the tax rate set forth in this Section or otherwise reduce the amount of taxes paid hereunder unless the provision specifically states that the reduction applies.

(Ord. No. 506, § 1, 2-23-2016)

Each operator shall, on or before the last day of the month following the close of each calendar quarter, make a payment to the city treasurer, on forms provided by the city treasurer, on the total gross receipts. Payment of tax is due immediately upon cessation of business for any reason.

(Ord. No. 506, § 1, 2-23-2016)

The city council may impose the tax authorized by this chapter at a lower rate and may establish exemptions, incentives, or other reductions, and penalties and interest charges or assessments for failure to pay the tax in a timely manner, as otherwise allowed by California law. No action by the council under this section shall prevent it from later increasing the tax or removing any exemption, incentive, or reduction, and restoring the maximum tax specified in this chapter.

No business license permit issued under the provisions of this chapter, or the payment of any tax required under the provisions of this chapter, shall 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 implied or authorizes that any activity connected with the distribution or possession of marijuana is legal unless otherwise authorized and allowed by California and federal law. Nothing in this section shall be applied or construed as authorizing the sale of marijuana.

(Ord. No. 506, § 1, 2-23-2016)

The tax provided for under the provisions of this chapter is not a sales or use tax and shall not be calculated or assessed as such. The tax shall not be separately identified or otherwise specifically assessed or charged to any member, patient, or caretaker. The taxes required by this chapter are solely for the purpose of obtaining revenue and are not regulatory permit fees.

(Ord. No. 506, § 1, 2-23-2016)

(a) This chapter was submitted to the voters for approval. Any amendment to section 13.3-1 to increase the tax above the rate expressly provided in such section shall 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 provision of this chapter as the city council deems in the best interest of the city.

(b) The city treasurer or the city treasurer's designee shall promulgate rules, regulations, and procedures to implement and administer this chapter to ensure the efficient and timely collection of the tax imposed by this chapter, including without limitation, formulation and implementation of penalties and interest to be assessed for failure to pay the tax as provided.

(c) The city treasurer or city treasurer's designee may annually audit the marijuana collective/cooperative business taxes imposed by this chapter to verify that tax revenues have been properly expended in accordance with the law. The city treasurer's agent shall have the right to examine and audit all the books, business records and tax returns to verify that tax revenues have been properly reported and paid.

(d) The business tax shall be enacted solely to raise revenue for general purposes and shall be placed in the city's general fund.

(Ord. No. 506, § 1, 2-23-2016)