Coalinga Municipal Code Ch. 9 Taxes on Commercial Cannabis Operations

Every person engaged in commercial cannabis operations in the City shall pay an annual business operations tax not to exceed as follows: Twenty-five dollars ($25.00) per square foot used in connection with each commercial cannabis operation for the first three thousand (3,000) square feet, and ten dollars ($10.00) per square foot for each additional square foot thereafter. The square footage calculation shall be determined by including all portions of the premises deducting therefrom driveways, sidewalks, landscaping, vacant unused space, areas used exclusively for office space, employee break rooms, restrooms, and storage space unrelated to the commercial cannabis operation (such as a janitorial closet). The City Council amend the established the annual business operations tax rate and square foot calculation determination by resolution.

If more than one (1) commercial cannabis operation operates on the premises, each person shall be responsible for paying the tax. The tax shall be payable in advance, in not less than quarterly installments, with the first quarterly payment due prior to opening. The first payment shall be prorated so that future payments coincide with calendar year quarters, but in no event shall the first payment be less than the equivalent of one (1) full quarterly payment. Except for the first quarterly payment, all quarterly payments shall be received by the City before the end of the quarter.

(Ord. No. 789, § 2, eff. 1-15-2017; Ord. No. 810, §§ 1, 2, eff. 6-21-2018)

The owner/operator of a cannabis dispensary located in the City of Coalinga shall pay a ten (10) percent gross receipts tax. "Gross receipts" is defined as: The total amount actually received or receivable from all cannabis dispensary sales; the total amount of compensation actually received or receivable for the performance of any act or service, of whatever nature it may be, for which a charge is made or credit allowed, whether or not such act or service is done as a part of or in connection with the sale of materials, goods, wares or merchandise; discounts, rents, royalties, fees, commissions, dividends, and gains realized. Included in "gross receipts" shall be all receipts, cash, credits and property of any kind or nature, without any deduction therefrom on account of the cost of the property sold, the cost of the material used, labor or service costs, interest paid or payable, or losses or other expenses whatsoever.

(Ord. No. 789, § 2, eff. 1-15-2017; Ord. No. 810, § 1, eff. 6-21-2018; Ord. No. 840, § 5, eff. 8-15-2020)

The purpose of these general taxes is to raise revenue to fund general municipal services and the revenue can be used for any lawful purpose.

(Ord. No. 789, § 2, eff. 1-15-2017)

The tax shall not be specifically charged or assessed to any customers or consumers of cannabis subject to this tax payment and remittance of the tax to the City shall solely be the responsibility of the person or entity engaged in commercial cannabis operations or operating a cannabis dispensary in the City.

(Ord. No. 789, § 2, eff. 1-15-2017; Ord. No. 810, § 2, eff. 6-21-2018)

The City Council may repeal this chapter, or amend it in a manner which does not result in an increase in the amount of the tax or broaden the scope of the tax imposed herein, without further voter approval. If the City Council repeals any provision of this chapter, it may subsequently reenact it without voter approval, as long as the reenacted provision does not result in an increase in the amount of the tax or broaden the scope of the tax imposed herein.

(Ord. No. 789, § 2, eff. 1-15-2017)

Any entity that fails to pay the taxes required by this chapter within thirty (30) days after the due date shall pay in addition to the taxes a penalty for nonpayment in the sum equal to twenty-five (25) percent of the total amount due. Additional penalties will be assessed in the following manner: ten percent (10%) shall be added on the first day of each calendar month following the month of the imposition of the twenty-five percent (25%) penalty if the tax remains unpaid - up to a maximum of one hundred percent (100%) of the tax payable on the due date. Receipt of the tax payment by the City shall govern the determination of whether the tax is delinquent. Postmarks will not be accepted as adequate proof of a timely payment.

(Ord. No. 789, § 2, eff. 1-15-2017)

Whenever it is necessary to examine any books or records, including tax returns, of any entity or person subject to the provisions of this chapter, to ascertain the amount of any tax due pursuant to this chapter, the City shall have the power and authority to examine such necessary books and records at any reasonable time including, but not limited to, during normal business hours. Records relating to the business, and any determinations to be made under this section must be maintained at least seven (7) years.

(Ord. No. 789, § 2, eff. 1-15-2017)

No 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.

(Ord. No. 789, § 2, eff. 1-15-2017)

The taxes imposed by this chapter shall be remitted directly to the City quarterly as set forth in this chapter.

(Ord. No. 789, § 2, eff. 1-15-2017)

The City Council by resolution, may promulgate supplemental regulations to implement and administer the provisions of this chapter.

(Ord. No. 789, § 2, eff. 1-15-2017)

Any aggrieved person by any decision of the City Manager, or designee, may appeal to the City Council by filing a notice of appeal with the City Manager within fifteen (15) days after the service of the notice of decision. The City Council shall fix a time and place for hearing such appeal as prescribed in rules and regulations adopted by the City Council for appeals, and shall give the appellant ten (10) days' written notice of the time and place of hearing.

The City Council may affirm, modify, or reverse such orders and decisions of the City Manager or dismiss the appeal thereof, as may be just. Decisions of the City Council upon appeal shall be final after service upon the appellant of a decision in accordance with the provisions of this chapter.

Whenever an appeal is available under this chapter and no appeal is filed within the time prescribed, the action of the City Manager shall be final.

(Ord. No. 789, § 2, eff. 1-15-2017)

No injunction, writ of mandate, or other legal or equitable process shall issue in any suit, action or proceeding in any court against the City or an officer thereof, to prevent or enjoin the collection of taxes sought to be collected pursuant to this chapter, and payment of all tax, interest and penalties shall be required as a condition precedent to seeking judicial review.

(Ord. No. 789, § 2, eff. 1-15-2017)