Del Norte County Municipal Code § 3.09

This chapter shall be known as the Del Norte Cannabis Tax Ordinance. The tax imposed by this chapter shall be applicable within the unincorporated area of Del Norte County.

For the purpose of this chapter, the following words and phrases shall be defined as follows:

1. “Cannabis” shall have the same meaning as set forth in Health and Safety Code Section 11018.

2. “Cannabis products” shall have the same meaning as set forth in Health and Safety Code Section 11018.1.

3. “Cultivator” shall mean a person required to be licensed to cultivate cannabis pursuant to Division 10 (commencing with Section 26000) of the Business and Professions Code.

4. "Gross receipts” shall mean the total dollar amount charged or received for the sale of goods, without any deduction for costs, expenses or losses, except that the sale price of property returned by the customer shall not be included in gross receipts. Gross receipts shall include the excise tax levied by the State of California pursuant to Revenue and Taxation Code Section 34011, but shall not include any sales and use tax imposed by the state or the County of Del Norte.

5. “Manufacturer” shall mean a person required to be licensed as a manufacturer pursuant to Division 10 (commencing with Section 26000) of the Business and Professions Code.

6. “Microbusiness” shall have the same meaning as set forth in Business and Professions Code Section 26070.

7. “Nonprofit” shall have the same meaning as set forth in Business and Professions Code Section 26070.5.

8. “Person” shall include any individual, firm, partnership, joint venture, limited liability company, association, social club, fraternal organization, corporation, estate, trust, business trust, receiver, assignee for the benefit of creditors, trustee, trustee in bankruptcy, or syndicate.

9. “Retailer of adult-use cannabis” shall mean a person required to be licensed as a retailer, microbusiness or nonprofit pursuant to Division 10 (commencing with Section 26000) of the Business and Professions Code, who is authorized to sell at retail cannabis or cannabis products intended for adults who are 21 years of age or older and who do not possess a physician’s recommendation.

10. “Retailer of medicinal cannabis” shall mean a person required to be licensed as a retailer, microbusiness or nonprofit pursuant to Division 10 (commencing with Section 26000) of the Business and Professions Code, who is authorized to sell cannabis or cannabis products intended for use by a medicinal cannabis patient who possesses a physician’s recommendation.

1. A retailer of adult-use cannabis shall pay a tax, in an amount which shall be set by resolution of the Board of Supervisors, of not less than two nor more than six percent of each dollar of its gross receipts. A retailer of medicinal cannabis shall not be subject to this tax.

2. Each retailer of adult-use cannabis shall, on or before the last day of the month following the close of each calendar quarter, submit a return to the tax collector declaring the amount of its gross receipts. At the time the return is filed, the full amount of the tax shall be remitted to the tax collector.

3. Timely remittance of the tax imposed by this section shall be a condition of any permit or other authorization issued by the county, and failure to remit the tax shall result in the revocation of the permit or authorization, and notification to the state licensing authority of such revocation, pursuant to Business and Professions Code §26200(c).

4. It shall be the duty of every retailer of adult-use cannabis to keep and preserve, for a period of three years, all records as may be necessary to determine the amount of tax owed to the county, which records the tax collector shall have a right to inspect at all reasonable times.

1. A manufacturer shall pay a tax, in an amount which shall be set by resolution of the Board of Supervisors, of not less than one, nor more than three percent of each dollar of its gross receipts.

2. Each manufacturer shall, on or before the last day of the month following the close of each calendar quarter, submit a return to the tax collector declaring the amount of its gross receipts. At the time the return is filed, the full amount of the tax shall be remitted to the tax collector.

3. Timely remittance of the tax imposed by this section shall be a condition of any permit or other authorization issued by the county, and failure to remit the tax shall result in the revocation of the permit or authorization, and notification to the state licensing authority of such revocation, pursuant to Business and Professions Code §26200(c).

4. It shall be the duty of every manufacturer to keep and preserve, for a period of three years, all records as may be necessary to determine the amount of tax owed to the county, which records the tax collector shall have a right to inspect at all reasonable times.

1. A cultivator shall pay an annual tax of one dollar per square foot of permitted outdoor cultivation area, and 3 dollars per square foot of permitted indoor cultivation area. Payment of this tax shall be a condition of any permit or authorization issued by the County of Del Norte for the cultivation of cannabis, and shall be remitted to the tax collector within 30 days of the issuance of the permit or authorization. The tax shall be on the privilege of possessing the permit or authorization, and shall be due regardless of whether cannabis is actually cultivated.

2. Any person required to be licensed to cultivate cannabis under Division 10 of Business and Professions Code, who cultivates cannabis without a license, is liable for all taxes imposed by this section. The tax shall be imposed based on the square footage of the license type the cultivator would need in order to cultivate cannabis legally.

3. A cultivator who has not paid the tax imposed by this section shall not be considered to be in compliance with county regulations for purposes of applying for a state license. However, if after paying the taxes, the cultivator fails to obtain a state license, the cultivator may apply to the tax collector for a refund of the taxes paid. The tax collector shall refund the taxes, without interest, less an administrative fee not to exceed five percent.

Any person required to be licensed as a microbusiness pursuant to Division 10 of the Business and Professions Code which operates as a retailer, manufacturer, cultivator, or any combination thereof, shall be separately and independently liable for the taxes imposed by this chapter upon each of those permitted activities.

1. Original Delinquency. Any person who fails to remit any tax imposed by this chapter within the time required shall pay a penalty of ten percent of the amount of the tax in addition to the amount of the tax.

2. Continued Delinquency. Any person who fails to remit any delinquent remittance on or before a period of thirty days following the date on which the remittance first became delinquent shall pay a second delinquency penalty of ten percent of the amount of the tax in addition to the amount of the tax and the ten percent penalty first imposed.

3. Interest. In addition to the penalties imposed, any person who fails to remit any tax imposed by this chapter shall pay interest at the rate of one-half of one percent per month or fraction thereof on the amount of the tax, exclusive of penalties, from the date on which the remittance first became delinquent until paid.

4. Penalties Merged With Tax. Every penalty imposed and such interest as accrues under the provisions of this section shall become a part of the tax herein required to be paid.

5. Lien. The tax collector is authorized to record a Certificate of Delinquency of Cannabis Tax with the Del Norte County Recorder against any person who fails to remit taxes, penalties or interest due under this article within the times required. The Certificate of Delinquency shall be filed within three years after the tax becomes due. From the time of recording the Certificate of Delinquency, the amount required to be paid, together with penalties and interest, constitutes a lien upon all property owned by the person in the county in which it is recorded. The lien has the force, effect, and priority of a judgement lien and shall continue for ten years from the filing of the Certificate of Delinquency. The tax collector may extend the lien an additional ten years. The tax collector may record the Certificate of Delinquency in any county in which the person owns property.

   1. At any time, three years after the recording of a Certificate of Delinquency of Cannabis Tax under the subsection above, the tax collector may issue a warrant directed to any sheriff or marshal for the enforcement of the lien and the collection of any tax and penalties required to be paid the county under this article. The warrant shall have the same effect as a writ of execution, and be executed in the same manner and with the same effect as a levy and sale pursuant to a writ of execution. The tax collector may pay or advance to the sheriff or marshal such fees, commission, and expenses for services as are provided by law for similar services pursuant to a writ of execution.

   2. In lieu of issuing a warrant, at any time within the three (3) years after a Certificate of Delinquency of Cannabis Tax was recorded under subsection, the tax collector may collect the delinquent amount by seizing, or causing to be seized, any property, real or personal, of the operator and sell any non-cash or non-negotiable property, real or personal, of the operator and sell any non-cash or non-negotiable property, or a sufficient part of it, at public auction to pay the amount of tax due, together with any penalties, interest, and any cost incurred on account of the seizure and sale. Any seizure made to collect taxes due shall only be a property of the operator not exempt from execution under the provisions of the Code of Civil Procedure.

6. Appeal. Any person aggrieved by any decision of the tax administrator with respect to the amount of such tax, interest and penalties, if any, may appeal to the County Hearing Officer by filing a notice of appeal with the Clerk of the Board of Supervisors within fifteen days of the serving or mailing of the determination of tax due. The County Hearing Officer shall fix a time and place for hearing such appeal, and the Clerk of the Board of Supervisors shall give notice in writing in such appellant at his last known place of address.

   1. The tax collector shall present the matter to the County Hearing Officer and include any evidence submitted by the appellant. The tax administrator shall also include proposed findings and a Resolution of the appeal. At the hearing, both the tax administrator and the person making the

appeal shall have an opportunity to explain their case and introduce other statements or evidence. The County Hearing Officer may impose reasonable time limits on each party’s presentation.

2. The findings of the County Hearing Officer shall be final and conclusive and shall be served upon the appellant in the manner prescribed above for service of notice of hearing. Any amount found to be due shall be served upon the appellant in the manner prescribed above for service of notice of hearing. Any amount found to be due shall be immediately due and payable upon the service of notice.