Chapter 5.30 — CANNABIS BUSINESS TAX

This chapter shall be known as the Cannabis Business Tax Ordinance.

(Code 1990, § 5.42.010; Ord. No. 18-01, § 1, 3-7-2018)

(a)

The purpose of this chapter is to adopt a tax, for revenue purposes, pursuant to Government Code §§ 37101 and 37100.5 upon cannabis businesses that engage in business in the Town. The cannabis business

tax is levied based upon business gross receipts. It is not a sales and use tax, a tax upon income, or a tax upon real property.

(b)

The cannabis business tax is a general tax enacted solely for general governmental purposes of the Town and not for specific purposes. All of the proceeds from the tax imposed by this chapter shall be placed in the Town's general fund and be available for any legal municipal purpose.

(Code 1990, § 5.42.020; Ord. No. 18-01, § 1, 3-7-2018)

The intent of this chapter is to levy a tax on all cannabis businesses that operate in the Town, regardless of whether such business was operating legally at the time the ordinance from which this chapter is derived was adopted. Nothing in this chapter shall be interpreted to authorize or permit any business activity that would not otherwise be legal or permissible under laws applicable to the activity at the time the activity is undertaken.

(Code 1990, § 5.42.030; Ord. No. 18-01, § 1, 3-7-2018)

The following words, terms and phrases, when used in this chapter, shall have the meanings ascribed to them in this section, except where the context clearly indicates a different meaning:

Business includes all activities engaged in or caused to be engaged in within the Town, including any commercial or industrial enterprise, trade, profession, occupation, vocation, calling, or livelihood, whether or not carried on for gain or profit, but shall not include the services rendered by an employee to the employer.

Cannabis means all parts of the plant Cannabis sativa Linnaeus, Cannabis indica, or Cannabis ruderalis, whether growing or not; the seeds thereof; the resin, whether crude or purified, extracted from any part of the plant; and every compound, manufactured product, salt, derivative, mixture, tincture, or preparation of the plant, its seeds, or resin. The term "Cannabis" also means the separated resin, whether crude or purified, obtained from cannabis. The term "Cannabis" also means marijuana as defined by Health and Safety Code § 11018 and is not limited to medical cannabis. For purposes of this chapter, the term "cannabis" does not include the term "industrial hemp" as defined by Health and Safety Code § 11018.5.

Cannabis business means any business activity involving cannabis, including, but not limited to, cultivating, transporting, distributing, manufacturing, compounding, converting, processing, preparing, storing, packaging, delivering, testing, dispensing, retailing and wholesaling of cannabis, of cannabis products or of ancillary products and accessories, whether or not carried on for gain or profit, whether for medical or recreational use, and whether or not such business possesses a license or other authorization to operate issued by the State.

Cannabis business tax means the tax due pursuant to this chapter for engaging in cannabis business in the Town.

Cannabis permit means a permit issued by the Town to a person to authorize that person to operate or engage in a cannabis business.

Cannabis product means raw cannabis that has undergone a process whereby the raw agricultural product has been transformed into a concentrate, an edible product, or a topical product. The term "cannabis product" also means marijuana products as defined by Health and Safety Code § 11018.1 and is not limited to medical cannabis products.

Commercial cannabis cultivation means cultivation in the course of conducting a cannabis business.

Cultivation means any activity involving the planting, growing, harvesting, drying, curing, grading, or trimming of cannabis and includes, but is not limited to, the operation of a nursery, but does not include personal medical cannabis cultivation for which the cultivator receives no compensation whatsoever, or cultivation for personal recreational use as authorized by Health and Safety Code § 11362.1 et seq. for which the cultivator receives no compensation whatsoever.

Employee means each person engaged in the operation or conduct of any business, whether as owner, member of the owner's family, partner, associate, agent, manager or solicitor, and each other person employed or working in such business for a wage, salary, commission, barter or any other form of compensation.

Engaged in business as a cannabis business means the commencing, conducting, operating, managing or carrying on of a cannabis business, whether done as owner, or by means of an officer, agent, manager, employee, or otherwise, whether operating from a fixed location in the Town or coming into the Town from an outside location to engage in such activities. A person shall be deemed engaged in business within the Town if:

(1)

Such person or person's employee maintains a fixed place of business within the Town for the benefit or partial benefit of such person;

(2)

Such person or person's employee owns or leases real property within the Town for business purposes;

(3)

Such person or person's employee regularly maintains a stock of tangible personal property in the Town for sale in the ordinary course of business;

(4)

Such person or person's employee regularly conducts solicitation of business within the Town; or

(5)

Such person or person's employee performs work or renders services in the Town.

The foregoing specified activities shall not be a limitation on the meaning of the term "engaged in business."

Evidence of doing business means evidence such as, without limitation, use of signs, circulars, cards or any other advertising media, including the use of internet or telephone solicitation, or representation to a government agency or to the public that such person is engaged in a cannabis business in the Town.

Gross receipts, except as otherwise specifically provided, means, whether designated a sales price, royalty, rent, commission, dividend, or other designation, the total amount (including all receipts, cash, credits and property of any kind or nature) received or payable for sales of goods, wares or merchandise or for the performance of any act or service of any nature for which a charge is made or credit allowed (whether such service, act or employment is done as part of or in connection with the sale of goods, wares, merchandise or not), without any deduction therefrom on account of the cost of the property sold, the cost of materials used, labor or service costs, interest paid or payable, losses or any other expense whatsoever. However, the following shall be excluded from gross receipts:

(1)

Cash discounts where allowed and taken on sales.

(2)

Any tax required by law to be included in or added to the purchase price and collected from the consumer or purchaser.

(3)

Such part of the sale price of any property returned by purchasers to the seller as refunded by the seller by way of cash or credit allowances or return of refundable deposits previously included in gross receipts.

(4)

Receipts derived from the occasional sale of used, obsolete or surplus trade fixtures, machinery or other equipment used by the taxpayer in the regular course of the taxpayer's business.

(5)

Cash value of sales, trades or transactions between departments or units of the same business, except that if the same business is engaged in two or more taxable activities (e.g., cultivation, manufacturing, distribution, and/or retail sales) tax shall be imposed and payable on each such activity regardless of whether sales, trades, or transactions occur between departments or units of the same business.

(6)

When there are included within the gross receipts amounts which reflect sales for which credit is extended and such amount proved uncollectible in a subsequent year, those amounts may be excluded from the gross receipts in the year they prove to be uncollectible; provided, however, if the whole or portion of such amounts excluded as uncollectible are subsequently collected they shall be included in the amount of gross receipts for the period when they are recovered.

(7)

Receipts of refundable deposits, except that such deposits when forfeited and taken into income of the business shall not be excluded when in excess of $1.00.

(8)

Amounts collected for others where the business is acting as an agent or trustee and to the extent that such amounts are paid to those for whom collected. These agents or trustees must provide the Finance Department with the names and the addresses of the others and the amounts paid to them. This exclusion shall not apply to any fees, percentages, or other payments retained by the agent or trustees.

(9)

Retail sales of t-shirts, sweaters, hats, stickers, key chains, bags, books, posters or other personal tangible property, which the Tax Collector has excluded in writing by issuing an administrative ruling per Section 5.30.130, shall not be subject to the cannabis business tax under this chapter. However, any retail sales not subject to this chapter as a result of the administrative ruling shall be subject to the appropriate business tax under Chapter 5.04 through Chapter 5.08 or any other chapter or title as determined by the Tax Collector.

Nursery means a facility or part of a facility that is used only for producing clones, immature plants, seeds, and other agricultural products used specifically for the planting, propagation, and cultivation of cannabis.

Sale means and includes any sale, exchange, or barter.

State license, license, or registration means a State license issued pursuant to Business and Professions Code § 19300 et seq. or other applicable State law.

Tax Collector means the Finance Director of the Town or designee.

Testing laboratory means a cannabis business that:

(1)

Offers or performs tests of cannabis or cannabis products;

(2)

Offers no service other than such tests;

(3)

Sells no products, excepting only testing supplies and materials;

(4)

Is accredited by an accrediting body that is independent from all other persons involved in the cannabis industry in the State; and

(5)

Is registered with the State Department of Public Health.

(Code 1990, § 5.42.040; Ord. No. 18-01, § 1, 3-7-2018)

(a)

Beginning July 1, 2018, or ten days after certification of the result of the election adopting this chapter, whichever is later, there is imposed upon each cannabis business a cannabis business tax regardless if the business has been issued a permit to operate lawfully in the Town or is operating unlawfully.

(b)

The initial rate of the cannabis business tax shall be as follows:

(1)

For every cannabis business engaged in commercial cannabis cultivation in the Town: two percent of gross receipts.

(2)

For every cannabis business engaged in the operation of a testing laboratory: one percent of gross receipts.

(3)

For every cannabis business engaged in the retail sales of cannabis as a retailer (dispensary) or non-store front retailer (delivery) or microbusiness (retail sales): four percent of gross receipts.

(4)

For every cannabis business engaged in cannabis distribution: two percent of gross receipts.

(5)

For every cannabis business engaged in cannabis manufacturing, processing, or operating as a microbusiness (non-retail), or any other type of cannabis business not described in Subsection (b)(1), (2), (3) or (4) of this section: two percent of gross receipts.

(c)

The Town Council may, by resolution or ordinance, adjust the rate of the cannabis business tax. However, in no event may the Town Council set any adjusted rate that exceeds the maximum rate calculated pursuant to Subsection (d) of this section for the date on which the adjusted rate will commence, nor shall the Town Council set a minimum tax rate for any business described in Subsection (b) of this section less than one percent of gross receipts.

(d)

The Town Council shall review the cannabis business tax on an annual basis as part of the budget adoption process and may, by resolution, increase the tax rates by up to one percent each year, not to exceed a maximum rate of eight percent for retail sales and four percent for all other cannabis businesses.

(Code 1990, § 5.42.050; Ord. No. 18-01, § 1, 3-7-2018)

(a)

The cannabis business tax imposed by this chapter shall be paid, in arrears, on a monthly basis. The tax due for each month shall be based on the gross receipts for the month.

(b)

Each person owing cannabis business tax for a month shall, no later than the last day of the month following the close of the month, file with the Tax Collector a statement of the tax owed for that month and the basis for calculating that tax. The Tax Collector may require that the statement be submitted on a form prescribed by the Tax Collector. The tax for each month shall be due and payable on that same date as the statement for the month is due.

(c)

Upon cessation of a cannabis business, tax statements and payments shall be immediately due for all months up to the month during which cessation occurred.

(d)

The Tax Collector may, at the Collector's discretion, establish shorter report and payment periods for any taxpayer as the Tax Collector deems necessary to ensure collection of the tax. The Tax Collector may also require that a deposit, to be applied against the taxes for a calendar quarter, be made by a taxpayer at the beginning of that calendar quarter. In no event shall the deposit required by the Tax Collector exceed the tax amount the Collector projects will be owed by the taxpayer for the calendar quarter. The Tax Collector may require that a taxpayer make payments via a cashier's check, money order, wire transfer, or similar instrument.

(Code 1990, § 5.42.060; Ord. No. 18-01, § 1, 3-7-2018)

Taxes collected from a cannabis business, which are not remitted to the Tax Collector, or postmarked, on or before the due dates provided in the ordinance codified in this chapter are delinquent. Should the due date occur on a Saturday, Sunday, or Town holiday, the return may be postmarked on the first regular working day following a Saturday/Sunday or Town holiday.

(Code 1990, § 5.42.070; Ord. No. 18-01, § 1, 3-7-2018)

The Town may as a courtesy send a tax notice to a cannabis business for which payment of taxes is delinquent. However, the Tax Collector is not required to send a delinquency or other notice or bill to any person subject to the provisions of this chapter. Failure to send such notice or bill shall not affect the validity of any tax or penalty due under the provisions of this chapter.

(Code 1990, § 5.42.080; Ord. No. 18-01, § 1, 3-7-2018)

(a)

Original delinquency. Any operator who fails to pay any tax or file any return imposed by this chapter within the time required shall pay, in addition to such tax and any interest such tax may accrue, an original delinquency penalty of $10.00 or 15 percent of the amount of the tax, whichever dollar amount is greater; provided, however, that any operator who has not been late in paying any tax imposed by this chapter or late filing any return within the preceding three calendar years shall, upon application of the operator to the Tax Collector within 15 days after the date such tax first became due, pay an original delinquency penalty of $10.00 or a total of one percent per day of the amount of tax due for each day such tax is delinquent, whichever dollar amount is greater, up to 15 percent. Every penalty imposed, and such interest as accrues under the provisions of this chapter, shall become part of the tax required to be paid. Interest shall accrue on all unpaid taxes until paid.

(b)

Continued delinquency. Any operator who fails to pay any delinquent tax, penalties and interest on or after the next business day of the following return period due date, shall pay an additional delinquency penalty, over and above that provided in Subsection (a) of this section, of $10.00 or 15 percent of the amount of the tax, penalties and interest then due, whichever is greater.

(Code 1990, § 5.42.090; Ord. No. 18-01, § 1, 3-7-2018)

(a)

No refund shall be made of any tax collected pursuant to this chapter, except as provided in Section 5.30.110.

(b)

No refund of any tax collected pursuant to this chapter shall be made because of the discontinuation, dissolution, or other termination of a business.

(c)

When the amount of any cannabis business tax, penalty or interest has been overpaid, paid more than once, or has been erroneously collected or received by the Town under this chapter, it may be refunded to the claimant who paid the tax provided that a written claim for refund is filed with the Tax Collector within one year of the date the tax was originally due and payable.

(d)

The Tax Collector, designee or any other Town officer charged with the administration of this chapter shall have the right to examine and audit all the books and business records of the claimant in order to determine the eligibility of the claimant to the claimed refund. No claim for refund shall be allowed if the claimant refuses to allow such examination of claimant's books and business records after request by the Tax Collector to do so.

(e)

In the event that the cannabis business tax was erroneously paid, and the error is attributable to the Town, the Town shall refund the amount of tax erroneously paid up to one year from when the error was identified.

(Code 1990, § 5.42.100; Ord. No. 18-01, § 1, 3-7-2018)

The provisions of this chapter shall not apply to personal cannabis cultivation that meets the definition of personal cultivation under State law and is consistent with the maximum number of living cannabis plants allowed per single private residence specified in Title 17 and Health and Safety Code § 11362.2. This chapter shall not apply to personal use of cannabis that is specifically exempted from State licensing requirements, that meets the definition of personal use or equivalent terminology under State law, and for which the individual receives no compensation whatsoever related to that personal use.

(Code 1990, § 5.42.110; Ord. No. 18-01, § 1, 3-7-2018)

(a)

It shall be the duty of the Tax Collector to collect the taxes, penalties, fees, and perform the duties required by this chapter.

(b)

For purposes of administration and enforcement of this chapter generally, the Tax Collector may from time to time promulgate such administrative interpretations, rules, and procedures consistent with the purpose, intent, and express terms of this chapter as he or she deems necessary to implement or clarify such provisions or aid in enforcement.

(c)

The Tax Collector may take such administrative actions as needed to administer the tax, including, but not limited to:

(1)

Provide to all cannabis business taxpayers forms for the reporting of the tax;

(2)

Provide information to any taxpayer concerning the provisions of this chapter;

(3)

Receive and record all taxes remitted to the Town as provided in this chapter;

(4)

Maintain records of taxpayer reports and taxes collected pursuant to this chapter;

(5)

Assess penalties and interest to taxpayers pursuant to this chapter;

(6)

Determine amounts owed and enforce collection pursuant to this chapter.

(Code 1990, § 5.42.120; Ord. No. 18-01, § 1, 3-7-2018)

Any taxpayer aggrieved by any decision of the Tax Collector with respect to the amount of tax, interest, penalties and fees, if any, due under this chapter may appeal to the Town Council by filing a notice of appeal with the Town Clerk within 15 days of the serving or mailing of the determination of tax due. The Town Clerk, or designee, shall fix a time and place for hearing such appeal, and the Town Clerk, or designee, shall give notice in writing to such operator at the last known place of address. The finding of the Town Council shall be final and conclusive and shall be served upon the appellant in the manner prescribed by this chapter for service of notice of hearing. Any amount found to be due shall be immediately due and payable upon the service of the notice.

(Code 1990, § 5.42.130; Ord. No. 18-01, § 1, 3-7-2018)

Any taxes, penalties or fees required to be paid under the provisions of this chapter shall be deemed a debt owed to the Town. Any person owing money to the Town under the provisions of this chapter shall be liable in an action brought in the name of the Town for the recovery of such debt. The provisions of this section shall not be deemed a limitation upon the right of the Town to bring any other action, including criminal, civil and equitable actions, based upon the failure to pay the tax, penalties or fees imposed by this chapter or the failure to comply with any of the provisions of this chapter.

(Code 1990, § 5.42.140; Ord. No. 18-01, § 1, 3-7-2018)

If a business subject to the tax is operating both within and outside the Town, it is the intent of the Town to apply the cannabis business tax so that the measure of the tax fairly reflects the proportion of the taxed activity actually carried on in the Town. To the extent Federal or State law requires that any tax due from

any taxpayer be apportioned, the taxpayer may indicate said apportionment on his or her tax return. The Tax Collector may promulgate administrative procedures for apportionment as is found useful or necessary.

(Code 1990, § 5.42.150; Ord. No. 18-01, § 1, 3-7-2018)

This tax is intended to be applied in a manner consistent with State and Federal constitutions and law. None of the tax provided for by this chapter shall be applied in a manner that causes an undue burden upon interstate commerce, a violation of the equal protection or due process clauses of the State and Federal constitutions or a violation of any other provision of the State constitution or State law. If a person believes that the tax, as applied to same, is impermissible under applicable law, such person may request that the Tax Collector release the same from the obligation to pay the impermissible portion of the tax. Pursuant to Article XIIIB of the State constitution, the appropriation limit for the Town is hereby increased to the maximum extent over the maximum period of time allowed under law by the amount of the revenues generated by the tax imposed by this chapter.

(Code 1990, § 5.42.160; Ord. No. 18-01, § 1, 3-7-2018)

(a)

For the purpose of ascertaining the amount of cannabis business tax owed or verifying any representations made by any taxpayer to the Town in support of the same's tax calculation, the Tax Collector shall have the power to inspect any location where commercial cannabis cultivation occurs and to audit and examine all books and records (including, but not limited to, bookkeeping records, State and Federal income tax returns, and other records relating to the gross receipts of the business) of persons engaged in cannabis businesses. In conducting such investigation, the Tax Collector shall have the power to inspect any equipment, such as computers or point of sale machines that may contain such records.

(b)

It shall be the duty of every person liable for the collection and payment to the Town of any tax imposed by this chapter to keep and preserve, for a period of at least three years, all records as may be necessary to determine the amount of such tax as he or she may have been liable for the collection of and payment to the Town, which records the Tax Collector or designee shall have the right to inspect at all reasonable times.

(Code 1990, § 5.42.170; Ord. No. 18-01, § 1, 3-7-2018)

(a)

Nothing contained in this chapter shall be deemed to repeal, amend, be in lieu of, replace or in any way affect any requirements for any permit or license required by, under or by virtue of any provision of any other chapter of this Code or any other ordinance or resolution of the Town, nor be deemed to repeal, amend, be in lieu of, replace or in any way affect any tax, fee or other charge imposed, assessed or

required by, under or by virtue of any other chapter of this Code or any other ordinance or resolution of the Town. Any references made or contained in any other chapter of this Code to any licenses, license taxes, fees, or charges, or to any schedule of license fees, shall be deemed to refer to the licenses, license taxes, fees or charges, or schedule of license fees, provided for in other chapter of this Code.

(b)

The Tax Collector may revoke or refuse to renew the business tax certificate required by Chapter 5.04 of this Code for any business that is delinquent in the payment of any tax due pursuant to this chapter or that fails to make a deposit required by the Tax Collector pursuant to Section 5.30.050.

(Code 1990, § 5.42.180; Ord. No. 18-01, § 1, 3-7-2018)

(a)

The payment of a cannabis business tax required by this chapter, and its acceptance by the Town, shall not entitle any person to carry on any cannabis business unless the person has complied with all of the requirements of this Code and all other applicable State laws.

(b)

No tax paid under the provisions of this chapter shall be construed as authorizing the conduct or continuance of any illegal or unlawful business, or any business in violation of any local or State law.

(Code 1990, § 5.42.190; Ord. No. 18-01, § 1, 3-7-2018)

If the Tax Collector is not satisfied that any statement filed as required under the provisions of this chapter is correct, or that the amount of tax is correctly computed, the Collector may compute and determine the amount to be paid and make a deficiency determination upon the basis of the facts contained in the statement or upon the basis of any information in or that may come into the Collector's possession within three years of the date the tax was originally due and payable. One or more deficiency determinations of the amount of tax due for a period or periods may be made. When a person discontinues engaging in a business, a deficiency determination may be made at any time within three years thereafter as to any liability arising from engaging in such business whether or not a deficiency determination is issued prior to the date the tax would otherwise be due. When a deficiency determination is made, a notice shall be given to the person concerned in the same manner as notices of assessment are given under Section 5.30.210.

(Code 1990, § 5.42.200; Ord. No. 18-01, § 1, 3-7-2018)

(a)

Under any of the following circumstances, the Tax Collector may make and give notice of an assessment of the amount of tax owed by a person under this chapter at any time:

(1)

If the person has not filed a complete statement required under the provisions of this chapter;

(2)

If the person has not paid the tax due under the provisions of this chapter;

(3)

If the person has not, after demand by the Tax Collector, filed a corrected statement, or furnished to the Tax Collector adequate substantiation of the information contained in a statement already filed, or paid any additional amount of tax due under the provisions of this chapter; or

(4)

If the Tax Collector determines that the nonpayment of any business tax due under this chapter is due to fraud, a penalty of 25 percent of the amount of the tax shall be added thereto in addition to penalties and interest otherwise stated in this chapter and any other penalties allowed by law.

(b)

The notice of assessment shall separately set forth the amount of any tax known by the Tax Collector to be due or estimated by the Tax Collector, after consideration of all information within the Tax Collector's knowledge concerning the business and activities of the person assessed, to be due under each applicable section of this chapter and shall include the amount of any penalties or interest accrued on each amount to the date of the notice of assessment.

(Code 1990, § 5.42.210; Ord. No. 18-01, § 1, 3-7-2018)

The notice of assessment shall be served upon the person either by personal delivery, or by a deposit of the notice in the U.S. mail, postage prepaid thereon, addressed to the person at the address of the location of the business or to such other address as shall be registered with the Tax Collector for the purpose of receiving notices provided under this chapter; or, should the person have no address registered with the Tax Collector for such purpose, then to such person's last known address. For the purposes of this section, a service by mail is complete at the time of deposit in the U.S. mail.

(Code 1990, § 5.42.220; Ord. No. 18-01, § 1, 3-7-2018)

Within 15 days after the date of service, the person may apply in writing to the Tax Collector for a hearing on the assessment. If application for a hearing before the Town is not made within the time herein prescribed, the tax assessed by the Tax Collector shall become final and conclusive. Within 30 days of the receipt of any such application for hearing, the Tax Collector shall cause the matter to be set for hearing before the Collector no later than 90 days after the receipt of the application, unless a later date is agreed to by the Tax Collector and the person requesting the hearing. Notice of such hearing shall be given by the

Tax Collector to the person requesting such hearing not later than five days prior to such hearing. At such hearing, said applicant may appear and offer evidence why the assessment as made by the Tax Collector should not be confirmed and fixed as the tax due. After such hearing, the Tax Collector shall determine and reassess the proper tax to be charged and shall give written notice to the person in the manner prescribed in Section 5.30.210 for giving notice of assessment.

(Code 1990, § 5.42.230; Ord. No. 18-01, § 1, 3-7-2018)

The conviction and 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.

(Code 1990, § 5.42.240; Ord. No. 18-01, § 1, 3-7-2018)

Any person violating any of the provisions of this chapter shall be guilty of a misdemeanor.

(Code 1990, § 5.42.250; Ord. No. 18-01, § 1, 3-7-2018)

All remedies and penalties prescribed by this chapter or which are available under any other provision of this Code and any other provision of law or equity are cumulative. The use of one or more remedies by the Town shall not bar the use of any other remedy for the purpose of enforcing the provisions of this chapter.

(Code 1990, § 5.42.270; Ord. No. 18-01, § 1, 3-7-2018)

This chapter may be repealed or amended by the Town Council without a vote of the people to the extent allowed by law. However, as required by Article XIII.C of the State constitution, voter approval is required for any amendment that would increase the rate of any tax levied pursuant to this chapter. The people of the Town affirm that the following actions shall not constitute an increase of the rate of a tax:

(1)

The restoration of the rate of the tax to a rate that is no higher than that set by this chapter, if the Town Council has acted to reduce the rate of the tax;

(2)

An action that interprets or clarifies the methodology of the tax, or any definition applicable to the tax, so long as interpretation or clarification (even if contrary to some prior interpretation or clarification) is not inconsistent with the language of this chapter; or

(3)

The collection of the tax imposed by this chapter even if the Town had, for some period of time, failed to collect the tax.

(Code 1990, § 5.42.280; Ord. No. 18-01, § 1, 3-7-2018)

By the passage of the ordinance from which this chapter is derived, the Town Council hereby authorizes and levies the Special Tax within the District pursuant to the Act, at the rate and in accordance with the rate and method of apportionment of Special Tax set forth in the Resolution of Formation, which rate and method is by this reference incorporated herein. The Special Tax is hereby levied commencing in fiscal year 2022—2023 and in each fiscal year thereafter to pay for the services for the District and all costs of administering the District, as contemplated by the Resolution of Formation and the Proceedings.

(1)

The Town's Finance Director or designee or employee or consultant of the Town is hereby authorized and directed each fiscal year to determine the specific Special Tax to be levied for the next ensuing fiscal year for each parcel of real property within the District, in the manner and as provided in the Resolution of Formation.

(2)

Exemptions from the levy of the Special Tax shall be as provided in the Resolution of Formation and the applicable provisions of the Act. In no event shall the Special Tax be levied on any parcel within the District in excess of the maximum Special Tax specified in the Resolution of Formation.

(3)

All of the collections of the Special Tax shall be used as provided in the Act and in the Resolution of Formation, including, but not limited to, the payment of the costs of the services, the payment of the costs of the Town in administering the District, and the costs of collecting and administering the Special Tax.

(4)

The Special Tax shall be collected in the same manner as ordinary ad valorem taxes are collected and shall have the same lien priority and be subject to the same penalties and the same procedure and sale in cases of delinquency as provided for ad valorem taxes; provided, however, that the Town Council may provide for other appropriate methods of collection by resolutions of the Town Council. The Finance Director of the Town is hereby authorized and directed to provide all necessary information to the Auditor/Tax Collector of the County in order to effect proper billing and collection of the Special Tax, so that the Special Tax shall be included on the secured property tax roll of the County for fiscal year 2022—2023 and for each fiscal year thereafter until no longer required to pay for the services or until otherwise terminated by the Town.

(Ord. No. 23-04, 4-19-2023)