Desert Hot Springs Municipal Code Ch. 3.39 Cannabis Tax Payment Arrangements

The City Council finds and determines that it is in the best interest of the City to enter into tax payment arrangement agreements ("agreement") for entities and people delinquent in paying taxes relating to: (1) Chapter 3.33 "Recreational Marijuana Cultivation Tax"; (2) Chapter 3.34 "Marijuana Tax"; (3) Chapter 3.35 "Medical Marijuana Cultivation Tax"; and/or (4) Chapter 3.37 "Medical Marijuana Tax" (collectively "subject tax structures"). On the one hand, such agreement(s) will provide the City with an additional mechanism for collection of delinquent taxes, and on the other hand, the entity or person will benefit as they will have more time to become economically viable, providing a greater chance of tax remittance. This chapter is intended to enable tax payment agreements other than tax installment agreements under Chapter 3.06 of this Code.

A. Any new tax payment arrangement agreements as of the effective date of the ordinance codified in this chapter shall be subject to penalties and interest.

(Ord. 800, 4/16/2024)

A. The City, acting through the City Manager, or designee, may initiate tax payment arrangement agreements with entities or persons delinquent in paying taxes for the subject tax structures.

B. The City Manager, or designee, shall have the sole authority to negotiate, execute and bind the City into a tax payment arrangement agreements, and any amendments thereto, for the full amount of the taxes owed.

C. The tax payment arrangement agreement shall be prepared to the satisfaction of the City Manager, or designee. The City Attorney shall review and approve the agreement and any amendments as to form.

D. Nothing in the agreement shall be construed as limiting the City's rights in using whatever methods it deems appropriate to collect the delinquent taxes.

(Ord. 800, 4/16/2024)