La Habra Municipal Code Ch. 5.58 Cannabis Business Tax

The purpose of this chapter is to impose, for revenue purposes, a tax upon cannabis businesses.

(Ord. 1834 § 2, 2021)

Each definition set forth in Section 5.04.010 of this code shall also apply to this chapter. Furthermore, for purposes of this chapter:

"Cannabis business"

means any business that: (1) is licensed by the state pursuant to the Medicinal and Adult-Use Cannabis Regulation and Safety Act (Business and Professions Code Section 26000 et seq.); and/or (2) involves the retailing, wholesaling, manufacturing, distributing, cultivation or testing of cannabis or cannabis products or the operation of a cannabis nursery.

"Cannabis business tax"

means the tax imposed by Section 5.58.030 of this chapter.

"Distribution", "testing" and "non-storefront retailer"

shall have the meanings set forth in Section 18.22.020 of this code.

"Gross receipts"

shall have the meaning set forth in Section 5.04.010(C) of this code.

(Ord. 1834 § 2, 2021)

A cannabis business tax is hereby imposed upon each person engaged in a cannabis business in the city.

(Ord. 1834 § 2, 2021)

The rate of the cannabis business tax shall be:

A. 1.125% of gross receipts derived from distribution;

B. One percent of gross receipts derived from testing,

C. Three percent of gross receipts derived from non-storefront retailers; and

D. Six percent of all other gross receipts.

(Ord. 1834 § 2, 2021)

A. The cannabis business tax is in addition to any other tax imposed by the city, including the generally applicable business license tax.

B. The cannabis business tax shall be collected quarterly and, except as explicitly provided in this chapter, shall be administered pursuant to Chapter 5.04 of this code.

C. The director of finance, or designee, may issue such regulations or interpretations of this chapter as are necessary or useful to the fair and effective administration of the cannabis business tax.

(Ord. 1834 § 2, 2021)

A. Proceeds of the cannabis business tax shall be deposited in the city's general fund and available for any lawful municipal purpose.

B. Proceeds of the tax shall be audited by an independent accountant as part of the city's annual financial audit and shall be annually reported to the public and presented to the city council at a public meeting as part of the city's comprehensive annual financial report or separately from that report.

(Ord. 1834 § 2, 2021)

This chapter does not authorize any person to conduct any business in the city. Cannabis businesses are regulated by Chapter 18.22 of this code and other provisions of this code.

(Ord. 1834 § 2, 2021)