Contra Costa County Municipal Code Art. 64-16.6 Administration and Enforcement

(a) The cannabis business tax is due and payable in legal tender and in accordance with Revenue and Taxation Code Section 2501 et seq. The cannabis business tax is due and payable on a quarterly basis as follows:

(1) Each person owing a tax under this chapter shall, on or before the last day of the month following the close of each calendar quarter, complete and submit to the treasurer-tax collector a tax statement and remit to the treasurer-tax collector the tax due. The tax due is no less than the quarterly installment due, but a person may at any time pay the estimated tax due for the entire fiscal year. The tax is due on or before the last day of the month following the close of that calendar quarter (i.e., on or before April 30, July 31, October 31, or January 31, as applicable). Any deficiencies of the estimated tax due must be remitted before the last day of the month following the calendar quarter in which the deficiency existed to avoid penalties.

(2) If a tax is owed on commercial cannabis cultivation, the tax due shall be determined in accordance with section 64-16.404(b). The tax will not be prorated or adjusted for any reduction in the square footage of canopy authorized but not utilized for cultivation. If cultivation begins in the middle of a fiscal year, the treasurer-tax collector will prorate, in monthly increments, the amount due for the fiscal year.

(b) All cannabis business tax statements must be completed on the forms designated by the treasurer-tax collector.

(c) Tax statements and payments for all outstanding taxes owed by a commercial cannabis activity are immediately due to the treasurer-tax collector if the commercial cannabis activity ceases operating for any reason.

(d) If any person, while liable for any cannabis business tax, sells, assigns or otherwise transfers ownership or control of a commercial cannabis activity, whether voluntarily or involuntarily ("transferor"), the person receiving ownership or control of that commercial cannabis activity ("transferee") shall do both of the following within five days after the effective date of the change in ownership or control: (1) notify the treasurer-tax collector of the change in ownership or control; and (2) pay the amount of cannabis business tax due, including all penalties and interest assessed on the tax. Notwithstanding the foregoing, and unless otherwise provided by law, upon the transfer of ownership of a cannabis business, the transferor and transferee are jointly and severally liable for any cannabis business tax due as of the date the treasurer-tax collector receives notice of the transfer, and all remedies available to the treasurer-tax collector may be sought against both the transferor and the transferee.

(e) The treasurer-tax collector may, at the treasurer-tax collector's discretion, establish shorter payment periods for any person as the treasurer-tax collector deems necessary to ensure collection of the tax.

(f) The treasurer-tax collector may, as part of administering the tax and in the treasurer-tax collector's discretion, modify requirements concerning the form of payment and take other administrative actions as needed to facilitate collection of the tax.

(g) Whenever any payment, statement, report, request, or other communication is due, it must be received by the treasurer-tax collector on or before the due date. A postmark will not be accepted as timely remittance. If the due date falls on a Saturday, a Sunday, or a holiday, the due date is the next regular business day on which the county is open to the public.

(Ord. No. 2024-23, § III(Exh. A), 12-3-24; Ord. No. 2018-22, § I, 11-6-18)

(a) A cannabis business tax statement and payment is delinquent if not received by the treasurer-tax collector by the due date. Partial payments are not accepted.

(b) Any person who fails to timely pay the cannabis business tax shall pay penalties and interest as follows:

(1) If the cannabis business tax is not paid by the due date, the person shall pay a penalty equal to ten percent of the unpaid cannabis business tax.

(2) If the cannabis business tax and any associated interest and penalties remain unpaid for more than thirty days after the due date, the person shall pay an additional penalty of twenty-five percent of the unpaid tax, plus interest at the rate of one and one-half percent per month on the unpaid tax.

(3) Interest will continue to accrue monthly on the unpaid tax until the balance is paid in full.

(c) If a check or electronic payment is submitted in payment of the cannabis business tax and the payment is subsequently reversed or returned unpaid by the bank for any reason, the taxpayer shall be liable for the tax due, a returned check fee, and the amount of all penalties and interest assessed for late payment of the cannabis business tax.

(d) Any penalty or interest imposed under this chapter shall become part of the tax required to be paid.

(Ord. No. 2018-22, § I, 11-6-18)

(a) A tax collected pursuant to this chapter will not be refunded except as provided in subsection (b).

(b) A cannabis business tax that was overpaid or erroneously collected by the county may be refunded to the person who paid the tax if the person files a written claim for a refund with the treasurer-tax collector within ninety days of the later of:

(1) The date the tax was originally due and payable; and

(2) The date the tax was paid.

(c) The treasurer-tax collector will send written notice of the determination on the refund claim.

(d) A person who disputes a determination on a refund claim may request a hearing pursuant to Section 64-16.612 by filing a written request for hearing with the treasurer-tax collector within fifteen days after the date of the notice of determination.

(Ord. No. 2018-22, § I, 11-6-18)

(a) A commercial cannabis activity shall, before beginning operations, register with the treasurer-tax collector, and provide information regarding the commercial cannabis activity as required by the treasurer-tax collector, including:

(1) The name and address for the commercial cannabis activity;

(2) A description of the type of commercial cannabis activity to be conducted;

(3) The name and telephone number of an individual with responsibility for reporting information to governmental authorities for the commercial cannabis activity; and

(4) Copies of all permits issued by the county and the state. If any of the foregoing information changes, the commercial cannabis activity shall promptly notify the treasurer-tax collector of the changes.

(b) The treasurer-tax collector may from time to time promulgate administrative rules and procedures necessary to implement this chapter or aid in its enforcement, including procedures for tax apportionment pursuant to Section 64-16.616 and creating and providing forms for reporting the cannabis business tax.

(c) The treasurer-tax collector may take any administrative actions needed to administer and collect the cannabis business tax, including but not limited to:

(1) Determining the amount of cannabis business taxes owed by commercial cannabis activities;

(2) Receiving all cannabis business taxes remitted to the county;

(3) Determining penalties and interest for delinquent cannabis business taxes;

(4) Maintaining records of cannabis business tax returns and taxes collected;

(5) Verifying or determining the square footage of canopy space; and

(6) Determining which products constitute cannabis products.

(Ord. No. 2018-22, § I, 11-6-18)

(a) The treasurer-tax collector or designee is authorized to audit and examine all books and records of commercial cannabis activities and of persons having ownership or control of commercial cannabis activities, including state and federal income tax returns, state sales tax returns, bank records, permits, accounting records, employment records, evidence documenting the gross receipts of the cannabis business, and goods and equipment used in the commercial cannabis activity, for the purpose of ascertaining the amount of gross receipts and the amount of cannabis business tax due and for the purpose of verifying the accuracy of any forms submitted to the treasurer-tax collector. If the commercial cannabis activity refuses or fails to make available all requested materials, the treasurer-tax collector may, after full consideration of all information known to the treasurer-tax collector concerning the commercial cannabis activity, issue a notice assessment of cannabis business tax due. The treasurer-tax collector may collect a fee adopted by the board of supervisors to pay for the cost of an audit if the books and records provided were insufficient to allow the treasurer-tax collector to accurately determine the amount of cannabis business tax due.

(b) The treasurer-tax collector may issue a notice of assessment of the amount of cannabis business tax, penalties and interest owed by a person at any time within three years after the due date if the person:

(1) Has not correctly computed the amount of cannabis tax due;

(2) Has not filed a complete cannabis business tax statement;

(3) Has not paid the cannabis business tax, penalties, and interest due;

(4) Has not filed a corrected cannabis business tax statement after demand by the treasurer-tax collector; or

(5) Has not provided adequate substantiation of the information contained in the cannabis business tax statement after demand by the treasurer-tax collector.

(c) If the treasurer-tax collector determines that the nonpayment of any cannabis business tax is due to fraud, a penalty shall be imposed that is equal to twenty-five percent of the amount of the cannabis business tax owed for the period in which the amount of tax due was underreported. This penalty is in addition to interest and penalties assessed for delinquent taxes.

(d) A person who disputes the amount of cannabis business tax, penalties, and interest assessed may request a hearing pursuant to section 64-16.612 by filing a written request for hearing with the treasurer-tax collector within fifteen days after the notice of assessment.

(Ord. No. 2024-23, § III(Exh. A), 12-3-24; Ord. No. 2018-22, § I, 11-6-18)

(a) A request for hearing must be in writing and timely filed. If a request for hearing is timely filed, the treasurer-tax collector will schedule a hearing and give written notice of the hearing date, time, and location to the person who paid the tax. If a request for hearing is not timely filed, the tax assessed by the treasurer-tax collector is final and conclusive.

(b) After the hearing, the treasurer-tax collector will give written notice of the final determination of the amount of cannabis business tax, penalties, and interest due. Any delinquent cannabis business tax shall continue to accrue penalties and interest until it is paid in full, as set forth in the notice of determination. Any taxes, penalties, or interest found by the treasurer-tax collector to have been assessed in error will be refunded.

(c) The decision of the treasurer-tax collector is final and conclusive. A person who contends the treasurer-tax collector's final decision is erroneous may, after paying all taxes, penalties, and interest due, file an action in the superior court of the county in accordance with California Code of Civil Procedure section 1094.5.

(Ord. No. 2018-22, § I, 11-6-18)

(a) Any cannabis business tax, interest, and penalties required to be paid under this chapter shall be deemed a debt owed to the county. Any person owing money to the county under this chapter shall be liable in an action brought in the name of the county for the recovery of the debt. The provisions of this section shall not be deemed a limitation upon the right of the county to bring any other action, including criminal, civil, and equitable actions, based upon the failure to pay the cannabis business tax, interest, and penalties assessed or to otherwise comply with the provisions of this chapter, or any other state or local law.

(b) In addition to any other remedies available under federal, state, or local law, if any cannabis business tax, interest or penalties are delinquent, the treasurer-tax collector may, within three years after the amount is due, record a certificate of lien specifying the amount of cannabis business taxes, interest, and penalties due, and identifying the names and last known addresses of the persons responsible for payment. The lien shall also specify that the treasurer-tax collector has complied with all provisions of this chapter in determining the amount required to be paid. From the time of filing the certificate of lien, the amount of cannabis business taxes, interest, and penalties due shall constitute a lien upon all real property in the county owned or subsequently acquired by the persons responsible for payment of the delinquent tax. The lien shall have the force, effect, and priority of a judgment lien and shall continue for ten years from the date of recording unless sooner released or otherwise discharged.

(c) At any time within three years after any person is determined by the treasurer-tax collector to be delinquent in the payment of cannabis business tax, or within three years after the last recording of a certificate of lien for delinquent cannabis business tax, the treasurer-tax collector may issue a warrant for the enforcement of any liens and for the collection of any delinquent cannabis business tax, including interest and penalties assessed thereon. The warrant shall be directed to the sheriff and shall have the same effect as a writ of execution. The warrant shall be levied and sale made pursuant to it in the same manner and with the same effect as a levy and sale pursuant to a writ of execution under Code of Civil Procedure Section 699.010 et seq.

(d) At any time within three years after the last recording of a certificate of lien for delinquent cannabis business tax, if the lien is not discharged and released in full, the treasurer-tax collector may seize any asset or property, real or personal (including bank accounts), of the commercial cannabis activity and sell at public auction the asset or property, or a sufficient part of it to pay the amounts due, including all interest and penalties and any costs incurred to collect the delinquent cannabis business tax. Assets exempt from execution under Code of Civil Procedure Section 699.720 are exempt from any action to enforce the cannabis business tax.

(e) All remedies and penalties prescribed by this chapter or that are available under this Code or any other provision of law or equity are cumulative. The use of one or more remedies by the county does not constitute a waiver or bar the use of any other remedy for the purpose of enforcing the provisions of this chapter.

(Ord. No. 2018-22, § I, 11-6-18)

(a) If a commercial cannabis activity operates both within and outside the unincorporated area of the county, it is the intent of the county to apply this chapter so that the tax fairly reflects the proportion of the activity actually carried on in the unincorporated area of the county. For purposes of apportionment as may be required by law, the treasurer-tax collector may promulgate administrative procedures for apportionment in accordance with state law and is authorized to obtain any necessary information from the commercial cannabis activity for this purpose, including financial records pertaining to activities outside the unincorporated area of the county.

(b) It is the intent of the county to apply this chapter in a manner consistent with the United States and California Constitutions and state law. The tax authorized by this chapter will not be applied in a manner that causes an undue burden upon interstate commerce, a violation of the equal protection or due process clauses of the United States or California Constitution, or a violation of any other provision of state law.

(c) Nothing in this chapter shall be deemed to repeal, amend, be in lieu of, replace, or in any way affect any requirements for any permit or license required under any other provision of this Code or state law. Nothing contained in this chapter shall be deemed to affect any tax, interest, penalty, fee, or other charge imposed under any other provision of this Code or state law.

(d) Payment of the tax authorized by this chapter, and the county's acceptance of the tax, does not entitle a person to conduct a commercial cannabis activity unless that person has complied with all requirements of this Code and applicable state law. Payment of the tax authorized by this chapter, and the county's acceptance of the tax, does not authorize the conduct or continuance of any illegal or unlawful activities.

(e) Fees charged by the treasurer-tax collector will be in accordance with a fee schedule adopted by the board of supervisors.

(Ord. No. 2018-22, § I, 11-6-18)

(a) This chapter may be repealed or amended by the board of supervisors without a vote of the people to the extent allowed by law. Voter approval is required for any amendment that would increase the rate of any tax levied under this chapter, as required by Article XIIIC of the California Constitution.

(b) The following actions do not constitute an increase of the rate of a tax:

(1) Adjustment of the tax rate to a rate that is no higher than the maximum rate set by this chapter, as adjusted by the Consumer Price Index in accordance with the terms of this chapter;

(2) An action that interprets or clarifies the methodology of the tax or any definition under this chapter, so long as the interpretation or clarification, even if contrary to a prior interpretation or clarification, is not inconsistent with the language of this chapter;

(3) The automatic adjustment of the maximum rate by the Consumer Price Index as provided in this chapter; and

(4) The collection of the tax imposed by this chapter even if the county, for some period of time, failed to collect the tax.

(Ord. No. 2018-22, § I, 11-6-18)