Fillmore Municipal Code Ch. 3.34 Marijuana Cultivation Tax

Every person cultivating marijuana in the city shall pay an annual tax not to exceed thirty dollars per square foot for the first three thousand square feet of space utilized as cultivation area and fifteen dollars per square foot for the remaining space utilized as cultivation area regardless of whether such operation has a valid marijuana cultivation permit pursuant to this code.

The taxes imposed by this chapter shall be adjusted every five years beginning on July 1, 2022, based on the Consumer Price Index ("CPI") for all urban consumers in the Oxnard-Thousand Oaks-Ventura, CA areas as published by the United States Government Bureau of Labor Statistics, or by one dollar per square foot for the first three thousand square feet of cultivation area and thirty-five cents per square foot for the remaining cultivation space; whichever amount is greater; however, no adjustment shall decrease any tax imposed by this chapter, unless approved by the city council.

(Ord. No. 16-864, § 1, 11-8-2016)

The purpose of this tax is to raise revenue to fund general municipal services.

(Ord. No. 16-864, § 1, 11-8-2016)

For the purposes of this chapter, unless the context clearly requires a different meaning, the following words, terms and phrases shall have the meaning given them in this section:

A. "Cultivation" means any activity involving the planting, growing, harvesting, drying, curing, grading, or trimming of marijuana.

B. "Director" means the finance director of the City of Fillmore.

C. "Marijuana" means all parts of the plant Cannabis, whether growing or not; the seeds thereof; the resin extracted from any part of the plant; and every compound, manufacture, salt, derivative, mixture, or preparation of the plant, its seeds, or resin. It includes marijuana infused in foodstuff, and concentrated cannabis and the separated resin, whether crude or petrified, obtained from marijuana. It does not include that mature stalks of the plant, fiber produced from the stalks, oil, or cake made from the seeds of the plant, any other compound, manufacture, salt, derivative, mixture, or preparation of the mature stalks (except resin extracted therefrom), fiber, oil, or cake, or the sterilized seeds of the plant that are incapable of germination. This definition includes marijuana used for all purposes, including for medical use as defined in the Medical Marijuana Regulation and Safety Act (Business & Professions Code section 19300 et seq.), and for recreational use.

D. "Person" means any individual, firm, corporation, association, club, society, or other organization or entity, including but not limited to any owner, manager, proprietor, employee, volunteer, salesperson, or agent thereof.

E. "Recreational use of marijuana" means the use of marijuana for purposes other than medical purposes.

F. "Space utilized as cultivation area" means any space or ground, floor, or other surface area (whether horizontal or vertical) which is used during the marijuana germination, seedling, vegetative, pre-flowering, flowering, and harvesting phases, including without limitation any space used for activities such as growing, planting, seeding, germinating, lighting, warming, cooling, aerating, fertilizing, watering, irrigating, topping, pinching, cropping, curing, or drying marijuana or any such space used for storing any products, supplies, or equipment related to any such activities, no matter where such storage may take place or such storage place may be located.

(Ord. No. 16-864, § 1, 11-8-2016)

A. The taxes imposed by this chapter shall be remitted to the city quarterly, on or before September 30, December 31, March 31, and June 30 every year.

B. Each person owing the taxes imposed by this chapter shall prepare a tax return, in a form acceptable to the director, and submit the tax return to the director at the time the taxes are due.

C. Tax returns and payments for all outstanding taxes owed to the city are immediately due to the city upon cessation of cultivation for any reason.

(Ord. No. 16-864, § 1, 11-8-2016)

A. 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.

B. The city council may impose the tax authorized by this chapter at a lower rate and may establish exemptions, incentives, or other reductions, as otherwise allowed by California law. No action by the city council under this section shall prevent it from later increasing the tax to the extent allowable by law or removing any exemption, incentive, or reduction, and restoring the maximum tax authorized by this chapter.

(Ord. No. 16-864, § 1, 11-8-2016)

The city manager may promulgate rules, regulations, and procedures to implement and administer this chapter.

(Ord. No. 16-864, § 1, 11-8-2016)

A. It shall be the duty of the director to enforce the provisions of this chapter.

B. Any person that fails to pay the taxes required by this chapter within thirty days after the due date shall pay in addition to the taxes a penalty for nonpayment in a sum equal to twenty-five percent of the total amount due. Additional penalties will be assessed in the following manner: ten percent shall be added on the first day of each calendar month following the date of the imposition of the twenty-five percent penalty if the tax remains unpaid, up to a maximum of one hundred percent 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

C. Any violation of this chapter shall constitute a public nuisance and may be abated as such.

D. Any person violating any provision of this chapter or any regulation or rule passed in accordance herewith, or knowingly or intentionally misrepresenting to any officer or employee of the city any fact material to the city's determination of the amount of tax owed by any person under the tax imposed by this chapter shall be guilty of a misdemeanor.

E. Whenever necessary to examine any books or records, including tax returns, of any entity subject to the provisions of this chapter, to ascertain the amount of any tax due pursuant to this chapter, the director 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. Such records must be maintained by any person subject to the provisions of this chapter for seven years.

F. The conviction or punishment of any person for failure to pay the required tax shall not excuse or exempt such person from any civil action for the tax debt unpaid at the time of such 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.

(Ord. No. 16-864, § 1, 11-8-2016)

The payment of the tax required pursuant to this chapter shall not be construed as authorizing the conduct or continuance of any illegal or unpermitted business or activity, or the conduct or continuance of any legal business or activity in an illegal or unpermitted manner.

(Ord. No. 16-864, § 1, 11-8-2016)

This tax shall become operative commencing upon the effective date of an ordinance permitting the cultivation of marijuana within the jurisdictional boundaries of the City of Fillmore.

(Ord. No. 16-864, § 1, 11-8-2016)