Chapter 8 — CANNABIS BUSINESS TAX

A.

In the event that there is a change of ownership of any cannabis business, the new owner is required to submit an updated registration form to the Treasurer-Tax Collector.

B.

Unless otherwise provided by law, upon the sale of any cannabis business:

It is the joint and several liability of both the seller and the buyer to remit any cannabis business tax owed up until the date of the sale; and

A Certificate of Delinquent Cannabis Business Tax Lien may be filed against both the buyer and/or the seller in an amount determined by the Treasurer-Tax Collector.

C.

Following any change of ownership, the new owner is subject to an audit by the Treasurer-Tax Collector, the Auditor-Controller or their designees.

D.

Any owner of a cannabis business required to collect or pay the cannabis business tax may apply for and receive, within ninety (90) days of application, a Tax Clearance Certificate, provided that all taxes, penalties and interest are paid in full for the time period specified.

(Ord. 2523, (05/09/2023))

If the Treasurer-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, they 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 their possession or that may come into their possession within three (3) years of the date the tax was originally due and payable. One (1) 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 (3) 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. Whenever a deficiency determination is made, a notice of deficiency shall be given to the person concerned in the same manner as notices of assessment are given under Section 5.08.270.

(Ord. 2523, (05/09/2023))

A.

Under any of the following circumstances, the Treasurer-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:

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

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

If the person has not, after demand by the Treasurer-Tax Collector, filed a corrected statement, or furnished to the Treasurer-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

If the Treasurer-Tax Collector determines that the nonpayment of any business tax due under this Chapter is due to fraud, a penalty of twenty-five percent (25%) 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 Treasurer-Tax Collector to be due or estimated by the Treasurer-Tax Collector, after consideration of all information within the Treasurer-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.

(Ord. 2523, (05/09/2023))

The notice of assessment shall be served upon the person either by personal delivery, or by a deposit of the notice in the United States mail, postage prepaid thereon, addressed to the person at the address of

the location of the business or to such other address as they shall register with the Treasurer-Tax Collector for the purpose of receiving notices provided under this Chapter; or, should the person have no address registered with the Treasurer-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 United States mail.

(Ord. 2523, (05/09/2023))

Within ten (10) days after the date of service of the notice of assessment, the person may apply in writing to the Treasurer-Tax Collector for a hearing on the assessment. If application for a hearing before the County is not made within the time herein prescribed, the tax assessed by the Treasurer-Tax Collector shall become final and conclusive. Upon receipt of any such application for hearing, the Treasurer-Tax Collector shall cause the matter to be set for hearing before them no later than forty-five (45) business days after the receipt of the application, unless a later date is agreed to by the Treasurer-Tax Collector and the person requesting the hearing. Notice of such hearing shall be given by the Treasurer-Tax Collector to the person requesting such hearing not later than five (5) calendar days prior to such hearing. At such hearing, said applicant may appear and offer evidence why the assessment as made by the Treasurer-Tax Collector should not be confirmed and fixed as the tax due. After such hearing the Treasurer-Tax Collector shall determine and, if applicable, reassess the proper tax to be charged and shall give written notice to the person in the manner prescribed in Section 5.08.270 for giving notice of assessment. The amount determined to be due shall be payable thirty (30) calendar days after written notice of the decision has been given, unless it is appealed to the Board of Supervisors in accordance with Section 5.08.170.

(Ord. 2523, (05/09/2023))

The conviction and punishment of any person for failure to pay the required cannabis business 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. 2523, (05/09/2023))

Any person violating any of the provisions of this Chapter shall be guilty of a misdemeanor and shall be punishable therefore as provided for in the Nevada County Code and the California Penal Code.

(Ord. 2523, (05/09/2023))

All remedies and penalties prescribed by this Chapter or which are available under any other provision of the Nevada County Codes and any other provision of law or equity are cumulative. The use of one (1) or more remedies by the County shall not bar the use of any other remedy for the purpose of enforcing the provisions of this Chapter.

(Ord. 2523, (05/09/2023))

This Chapter may be repealed or amended by the County Board of Supervisors without a vote of the people to the extent allowed by law. However, as required by Article XIIIC of the California Constitution, voter approval is required for any amendment that would increase the rate of any tax levied pursuant to this Chapter above the maximum rates established by this Chapter. The people of the County of Nevada affirm that the following actions shall not constitute an increase of the rate of a tax:

A.

The restoration of the rate of the tax to a rate that is no higher than that set by this Chapter, if the County Board of Supervisors has acted to reduce the rate of the tax;

B.

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

C.

The collection of the tax imposed by this Chapter even if the County had, for some period of time, failed to collect the tax;

D.

The Board of Supervisors adoption of an ordinance, as authorized by Section 5.08.050 to increase or decrease the tax rate or to modify the method for assessing and collecting the tax provided the tax rate is not increased to a rate higher than the maximums established herein and the method of assessment is consistent with the methodologies established herein.

(Ord. 2523, (05/09/2023))