Blythe Municipal Code Ch. 3.36 Commercial Cannabis Business Tax

The definitions contained in Chapter 5.10 of this code shall apply to this chapter.

(Ord. No. 888, § 1, 4-24-18)

A. Every person cultivating cannabis for commercial purposes in the city shall pay an annual maximum tax of three dollars per square foot of space used as a cultivation area. This tax shall be due and payable annually for the preceding year on or before the close of the last business day in January.

B. Every person engaged in commercial cannabis activity except cultivation shall pay a maximum tax of two percent of gross receipts due and payable monthly.

C. Every person engaged in commercial cannabis activity shall pay an annual business license fee of five thousand dollars.

(Ord. No. 888, § 1, 4-24-18)

A. Failure to pay the taxes set forth in this chapter shall be subject to penalties, interest charges, and determinations of tax due as the city council may establish. The city may use any or all other enforcement remedies provided for in this code or pursuant to state law.

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

C. The payment of the taxes required pursuant to this chapter shall not be construed as authorizing the conduct or continuance of any illegal business or of a legal business in an illegal manner.

D. The taxes required in this chapter are not sales or use taxes and shall not be calculated or assessed as such. The taxes shall not be separately identified or otherwise specifically assessed or charged to any individual member, consumer or customer; rather the taxes are imposed upon the cannabis operation.

E. The city manager shall promulgate rules, regulations and procedures to implement and administer this chapter to ensure the efficient and timely collection of the taxes imposed by this chapter, including without limitation, formulation of penalties and interest to be assessed for failure to pay the taxes as provided.

(Ord. No. 888, § 1, 4-24-18)

A. The city manager shall enforce the provisions of this chapter.

B. The city manager, with the assistance of the city attorney, may promulgate administrative rules and regulations.

C. The city manager shall have the power to audit and examine all books and records of commercial cannabis businesses as well as persons engaged in commercial cannabis activity, including state and federal income tax returns, California sales tax returns, logs, receipts, bank records, and other evidence documenting the gross receipts of the commercial cannabis business or person, for the purpose of ascertaining the amount of tax, if any, required to be paid under this chapter, and for the purpose of verifying any statements or any item thereof when filed by any person pursuant to this chapter. If a commercial cannabis business or a person engaged in commercial cannabis activity, after written demand by the city, refuses or fails to make available for audit, examination or verification of such books, records, or information as the city manager requests, the city manager may make a determination of tax due after full consideration of any and all information available.

D. The conviction and punishment of any person for failure to pay the required tax shall not excuse or exempt such person from any civil action to collect the tax debt unpaid at the time of conviction. No civil action shall prevent a criminal prosecution for any violation of the provisions of this chapter or of any state law requiring the payment of all taxes.

E. Any person violating any of the provisions of this chapter or any rule or regulation passed in accordance herewith, or knowingly or intentionally misrepresenting to any city officer or employee any material fact shall be guilty of a misdemeanor.

(Ord. No. 888, § 1, 4-24-18)

A. The amount of any tax, penalties and interest imposed by this chapter shall be deemed a debt to the city and any commercial cannabis business or a person engaged in commercial cannabis activity without also making payment to the city of the taxes imposed by this chapter shall be liable in an action in the name of the city in any court of competent jurisdiction for the amount of the tax, penalties and interest imposed on such commercial cannabis business or a person engaged in commercial cannabis activity.

B. If the city manager is not satisfied that any statement filed as required by this chapter is correct, or that the amount of the tax is correctly computed, the city manager may compute and determine the amount to be paid and make a deficiency determination upon the basis of the facts contained in the statement or upon the basis of any information available. One or more deficiency determinations of the amount of tax due for a given period or periods may be made. When a commercial cannabis business or a person engaged in commercial cannabis activity, a deficiency determination may be made at any time within three years thereafter as to any liability arising from the commercial cannabis activity whether or not a deficiency determination is issued prior to the date the tax would otherwise be due.

C. Under any of the following circumstances, the city manager may make and give notice of a determination of the amount of a tax or taxes owed under this chapter:

1. If the commercial cannabis business or person engaged in commercial cannabis activity has not filed any statement or return required under this chapter.

2. If the commercial cannabis business or person engaged in commercial cannabis activity has not paid any tax due under this chapter.

3. If the person has not, after demand by the city manager, filed a corrected statement or return, or furnished to the city adequate substitution of the information contained in a statement or return previously filed, or paid any additional amount of tax due under this chapter.

D. Within ten days of service of a determination of the amount of tax owed under this chapter, a commercial cannabis business or person engaged in commercial cannabis activity may apply in writing to the city manager for a hearing on the determination. If such an application is not made, the tax assessed by the city shall become final.

(Ord. No. 888, § 1, 4-24-18)