Article VI — CANNABIS CULTIVATION TAX

This Chapter shall be known as the Lake County Cannabis Cultivation Tax Ordinance.

(Ord. No. 3047, § 1, 8-9-2016)

Secs. 18-46, 18-47. - Reserved.

The purpose of this ordinance is to impose a tax on cannabis cultivation operations which occur in the unincorporated areas of the County of Lake in order to raise additional revenue to help fund law enforcement, environmental protection, and water quality resources in the County as well as to establish additional educational programs for County youth relating to drug and alcohol use.

(Ord. No. 3047, § 1, 8-9-2016)

"Cultivation" means the germinating, cloning, seed production, planting, growing, and harvesting of cannabis plants and the on-site drying, curing, grading, or trimming of cannabis plants.

"Person" means an individual, firm, partnership, joint venture, association, corporation, limited liability company, estate, trust, cooperative, collective, syndicate or any other group of combination acting as a unit and includes the plural as well as the singular number.

"Cultivation site" means the sum of the area(s) of cannabis cultivation as measured around the perimeter of each discrete area of cannabis cultivation on a single premises, as defined herein.

"Legally-Authorized Cannabis Cultivation" means cannabis cultivation performed in compliance with local and state laws and regulations.

"Personal Use" means cultivation of medical cannabis under one (1) of the following two (2) conditions:

a.

Cultivation of medical cannabis by an individual in an area which does not exceed one hundred (100) square feet if cultivated for his/her personal use and which is not sold, distributed, donated, or provided to any other person or entity; or

b.

Cultivation of medical cannabis by a primary caregiver if the cultivation site does not exceed five hundred (500) square feet and he/she cultivates cannabis exclusively for the personal use of no more than five (5) specified qualified patients for whom he/she is the primary caregiver.

"Outdoor Cultivation" means the cultivation of cannabis using no artificial light of any kind.

"Indoor Cultivation" means the cultivation of cannabis in permanent structures using exclusively artificial light sources.

"Mixed Light Cultivation" means the cultivation of cannabis which involves the use of a combination of natural and supplemental artificial lighting at a maximum threshold as determined by the Department of Food and Agriculture.

"Premises" means a legal parcel compliant with the Subdivision Map Act, or leasehold interest in agricultural land for agricultural purposes of outdoor, mixed-light, or indoor cultivation or processing of cannabis, or leased or owned space in an industrial or commercial building for purposes of indoor cultivation, processing, manufacture or distribution of cannabis.

(Ord. No. 3047, § 1, 8-9-2016)

Except as otherwise exempted herein, all legally authorized cannabis cultivation which occurs in the unincorporated areas of the County Lake is subject to the imposition of the Lake County Cannabis Cultivation Operations Tax. The imposition of said tax is in addition to any permitting or other requirements imposed by the Lake County Code.

(Ord. No. 3047, § 1, 8-9-2016)

In addition to any requirements imposed by Chapter 21 of the Lake County Code, each person engaged in legally-authorized cannabis cultivation within the unincorporated area of Lake County shall pay an annual tax of one dollar ($1.00) per square foot of an outdoor cultivation site, two dollars ($2.00) per square foot of a mixed-light cultivation site, and/or three dollars ($3.00) per square foot of an indoor cultivation site, subject to annual Consumer Price Index increases as provided in Section 18-53.

(Ord. No. 3047, § 1, 8-9-2016)

No tax shall be imposed for medical cannabis cultivated strictly for personal use as defined herein.

(Ord. No. 3047, § 1, 8-9-2016)

The tax imposed by this Chapter shall be adjusted on July 1, 2017 and on the first of July of each succeeding year based upon the Consumer Price Index ("CPI") for all urban consumers in the San Francisco-Oakland-San Jose areas as published by the U.S. Bureau of Labor Statistics. No adjustment shall decrease the taxes imposed by this Chapter.

(Ord. No. 3047, § 1, 8-9-2016)

The tax imposed by this Chapter shall be collected by the Lake County Treasurer-Tax Collector biannually in the same manner as other taxes fixed and collected by the County of Lake. For purposes of this Chapter, taxes shall begin to accrue on the date on which a person becomes engaged in legally-authorized cannabis cultivation in accordance with the applicable provisions of the Lake County Code and all other applicable state and federal laws and regulations.

(Ord. No. 3047, § 1, 8-9-2016)

Any person who fails to pay the tax required by this Chapter within thirty (30) days after the due date shall pay, in addition to the tax, a penalty for nonpayment in a sum equal to twenty-five (25) percent of the total

amount due. Receipt of the tax payment by the Lake County Treasurer-Tax Collector's Office shall govern the determination of whether the tax is delinquent. Postmarks will not be accepted as adequate proof of a timely payment.

(Ord. No. 3047, § 1, 8-9-2016)

Upon approval of the Ordinance enacting this Chapter by a majority of the voters, the County may take such actions necessary for the implementation and administration of the provisions of this Chapter. Such actions shall include, but shall not be limited to:

The County may adopt those policies and regulations

determined by the Board of Supervisors to be necessary for said implementation and administration.

The Lake County Board of Supervisors 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 Board of Supervisors 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 said tax. Voter approval would be required for any amendment provision that would increase the rate of tax imposed pursuant to this Chapter.

The administration of the provisions of this Chapter shall include, but shall

not be limited to, the authority of the County to examine the books and records, including tax returns, of any person subject to the provisions of this Chapter. Any such examination shall occur at a reasonable and upon reasonable advance notice thereof.

(Ord. No. 3047, § 1, 8-9-2016)

In the event that the cultivation of cannabis for recreational use is legalized or decriminalized in the State of California, the provisions of this Chapter shall apply, without subsequent voter approval, to each person cultivating cannabis for such purposes in accordance with the applicable provisions of County Code and all applicable state and federal laws. No amendment or modification to this Chapter shall be required to conform the tax to said changes and the tax shall be imposed and collected to the full extent authorized pursuant to this Chapter.

(Ord. No. 3047, § 1, 8-9-2016)

The payment of the tax imposed pursuant to this Chapter, and its acceptance by the County, shall not entitle any person to carry on medical cannabis cultivation unless the person has complied with all applicable requirements of the Lake County Code and all other applicable laws. No tax paid under the provisions of this Chapter shall be construed as authorizing the conduct or continuance of any illegal or unlawful cultivation in violation of any County ordinance.

(Ord. No. 3047, § 1, 8-9-2016)

If any provision of this Chapter or the application thereof to any person or circumstance is held invalid, the remainder of the Chapter and the application of such provision to other persons or circumstances shall not be affected thereby.

(Ord. No. 3047, § 1, 8-9-2016)

In the event the Ordinance enacting this Chapter is approved by a majority vote of the voters at the election on November 8, 2016, it shall become effective on January 1, 2017. However, no tax shall be imposed or collected by the County until so authorized by state law.

(Ord. No. 3047, § 1, 8-9-2016)