Vallejo Municipal Code Part 2 General Tax Provisions

Nothing contained in this Chapter 5.05 shall be deemed to repeal, amend, be in lieu of, replace or in any way affect any requirements for any license or permit required by, under or by virtue of any provision of any other title or chapter of this code or any other ordinance of the city or resolution of the city council, 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 title or chapter of this code including, but not limited to, the business license tax imposed by and the requirements set forth in Chapter 5.04, or any other ordinance of the city or resolution of the city council. Any references made or contained in any other title or 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 titles or chapters of this code.

(Ord. No. 1652 N.C.(2d), § 1, 7-12-2011)

A. There are imposed upon all persons engaged in marijuana business in the city taxes in the amounts prescribed in this chapter and Chapter 5.04. It shall be unlawful for any person, either for him or herself or for any other person, to commence, transact or carry on any marijuana business in the city without first having procured a business license from the city under Chapter 5.04 and having paid the tax set forth therein, and without complying with any and all provisions contained in this chapter. The carrying on of any marijuana business without complying with any and all provisions of this chapter and Chapter 5.04 shall constitute a separate violation of this chapter and Chapter 5.04 for each and every day that such marijuana business is so carried on.

B. The business license required to be obtained under Chapter 5.04 and the taxes required to be paid under this chapter and Chapter 5.04 are declared to be required pursuant to the taxing power of the city solely for the purpose of obtaining revenue and are not regulatory permit fees.

(Ord. No. 1652 N.C.(2d), § 1, 7-12-2011)

A. The payment of a business license tax required by this chapter, and its acceptance by the city, shall not entitle any person to carry on any marijuana business unless the person has complied with all of the requirements of this code and all other applicable laws, nor to carry on any marijuana business in any building or on any premises in the event that such building or premises are situated in a zone or locality in which the conduct of such marijuana business is in violation of any law.

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 ordinance of the city.

(Ord. No. 1652 N.C.(2d), § 1, 7-12-2011)

Every person required to have a business license under the provisions of Chapter 5.04 shall make application for the same, or for renewal of the same, to the director. Such application shall be a written statement upon a form or forms provided by the director and shall be signed by the applicant under penalty of perjury. The application shall set forth such information as may be required and as may be reasonably necessary to properly determine the amount of the tax to be paid by the applicant under Chapter 5.04, together with such other information as is required by the director to enable the director to administer the provisions of this chapter.

(Ord. No. 1652 N.C.(2d), § 1, 7-12-2011)

The tax imposed under this chapter shall be paid to the director in lawful money of the United States, at the office of the director, or any other location designated by the director. Lawful money shall mean any coin, currency or negotiable instrument, exchangeable for said coin or currency, which the United States Congress has declared to be a national legal tender.

(Ord. No. 1652 N.C.(2d), § 1, 7-12-2011)

A. In addition to the business tax imposed under Chapter 5.04 of this code and the requirements set forth therein, every person engaged in marijuana business in the city shall pay a business tax at a rate of up to ten percent of gross receipts. The tax under this chapter shall not be imposed on marijuana businesses unless and until the city council, by ordinance, takes action to set a tax rate not to exceed ten percent of gross receipts.

B. Notwithstanding the maximum tax rate of ten percent of gross receipts imposed under Subsection A., the city council may, in its discretion, at any time by ordinance, implement a lower tax rate for all marijuana businesses or establish differing tax rates for different categories of marijuana businesses, as defined in such ordinance, subject to the maximum rate of ten percent of gross receipts. The city council may, by ordinance, also increase any such tax rate from time to time, not to exceed the maximum tax rate of ten percent of gross receipts in accordance with subsection A. above.

C. Commencing on July 1, 2019, every person engaged in marijuana business in the city shall pay a marijuana business tax on gross receipts. Pursuant to subsection A. and B. above, the city council sets the marijuana business tax rate by industry type as follows:

1. The marijuana business tax rate for retail sales of adult use cannabis shall be set at a rate of seven percent of gross receipts.

2. There shall be no marijuana business tax rate for retail sales of medicinal cannabis.

3. The marijuana business tax rate for cannabis cultivation shall be set at a rate of five percent of gross receipts.

4. The marijuana business tax rate for cannabis manufacturing shall be set at a rate of five percent of gross receipts.

5. The marijuana business tax rate for cannabis distribution shall be set at a rate of two percent of gross receipts.

6. There shall be no marijuana business tax rate for cannabis testing laboratory services.

D. Beginning September 20, 2015, no marijuana business tax shall be accepted by the city from any marijuana business that does not comply with Chapter 7.100.

(Ord. No. 1652 N.C.(2d), § 1, 7-12-2011; Ord. No. 1661 N.C.(2d), § 1, 1-31-2012; Ord. No. 1707 N.C.(2d), § 1, 4-28-2015; Ord. No. 1714 N.C.(2d), § 1, 7-28-2015; Ord. No. 1813 N.C.(2d), § 3, 4-23-2019)

The business tax imposed by this chapter shall be due and payable as follows:

A. Each person owing a tax under this chapter shall, on or before the last day of each calendar month, prepare and submit a tax return to the director of the total gross receipts and remit the amount of tax owed for that calendar month by the twentieth day of the following calendar month, and becomes delinquent thereafter. At the time the tax return is filed, the full amount of the tax owed for the preceding calendar month shall be remitted to the director.

B. All tax returns shall be completed on forms provided by the director.

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

(Ord. No. 1652 N.C.(2d), § 1, 7-12-2011)

Unless otherwise specifically provided under other provisions of this chapter, the taxes required to be paid pursuant to this chapter shall be deemed delinquent if not paid on or before the due date specified in Section 5.05.260.

(Ord. No. 1652 N.C.(2d), § 1, 7-12-2011)

The director is not required to send a delinquency or other notice or bill to any person subject to the provisions of this chapter and failure to send such notice or bill shall not affect the validity of any tax or penalty due under the provisions of this chapter.

(Ord. No. 1652 N.C.(2d), § 1, 7-12-2011)

A. Any person who fails or refuses to pay any business tax required to be paid pursuant to this chapter on or before the due date shall pay penalties and interest as follows:

1. Original Delinquency. A penalty equal to twenty-five percent of the amount of the tax in addition to the amount of the tax, plus interest on the unpaid tax calculated from the due date of the tax at the rate of one percent per month or fraction thereof on the amount of the tax, exclusive of penalties, from the date on which the remittance first became delinquent until paid; and

2. Continued Delinquency. An additional penalty equal to twenty-five percent of the amount of the tax if the tax remains unpaid for a period exceeding one calendar month beyond the due date, plus interest on the unpaid tax calculated at the rate of one percent per month or fraction thereof on the amount of the tax, exclusive of penalties, from the date on which the remittance first became delinquent until paid.

B. Whenever a check is submitted in payment of a business tax and the check is subsequently returned unpaid by the bank upon which the check is drawn, and the check is not redeemed prior to the due date, the taxpayer will be liable for the tax amount due plus penalties and interest as provided for in this section plus any amount allowed under state law.

C. The business tax due shall be that amount due and payable from the first date on which the person was engaged in marijuana business in the city, together with applicable penalties and interest calculated in accordance with subsection A. above.

(Ord. No. 1652 N.C.(2d), § 1, 7-12-2011)

The director may waive the first and second penalties of twenty-five percent each imposed upon any person if:

A. The person provides evidence satisfactory to the director that failure to pay timely was due to circumstances beyond the control of the person and occurred notwithstanding the exercise of ordinary care and the absence of willful neglect, and the person paid the delinquent business tax and accrued interest owed the city prior to applying to the director for a waiver.

B. The waiver provisions specified in this subsection shall not apply to interest accrued on the delinquent tax and a waiver shall be granted only once during any twenty-four-month period.

(Ord. No. 1652 N.C.(2d), § 1, 7-12-2011)

A. No refund shall be made of any tax collected pursuant to this chapter except as provided in Section 5.05.320.

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. Any person entitled to a refund of taxes paid pursuant to this chapter may elect in writing to have such refund applied as a credit against such person's business taxes for the next calendar month.

(Ord. No. 1652 N.C.(2d), § 1, 7-12-2011)

A. Whenever the amount of any business tax, penalty or interest has been overpaid, paid more than once, or has been erroneously or illegally collected or received by the city under this chapter, it may be refunded to the claimant who paid the tax provided that a written claim for refund shall be presented to the director within one year of the date of payment, and in the manner prescribed by Part 3 of Division 3.6 of Title 1 of the California Government Code (commencing with section 900 thereof) for the claims to which that part applies by its own terms, as those provisions now exist or shall hereafter be amended, and as further provided by this section.

B. All claims shall be made in writing and verified under the penalty of perjury by the claimant or by his or her guardian, conservator, executor or administrator. All tax refund claims shall be filed on the refund claim form prescribed by the director. In the event that the director has not prescribed a form of claim, the tax refund claim shall contain:

1. The information required by California Government Code Section 910; and

2. The specific amount claimed to have been overpaid, paid more than once, or erroneously or illegally collected or received by the city; and

3. The grounds upon which the claim is founded, with specificity sufficient to enable the director and other responsible city officials to understand and evaluate the claim; and

4. Documentation supporting the amount of the refund sought.

The foregoing reference to Government Code Section 910 shall not be construed to authorize a class claim, and no claim may be filed on behalf of a class of persons unless verified by every member of that class.

C. The director or the director's authorized agent 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 therefor refuses to allow such examination of claimant's books and business records after request by the director to do so.

D. In the event that the business tax was erroneously paid and the error is attributable to the city, the entire amount of the tax erroneously paid shall be refunded to the claimant. If the error is attributable to the claimant, the city shall retain an administrative fee as set forth in a resolution of the city council from the amount to be refunded to cover the city's expenses.

E. The director shall initiate a refund of any business tax which has been overpaid or erroneously collected whenever the overpayment or erroneous collection is uncovered by a city audit of business tax receipts. In the event that the business tax was erroneously paid and the error is attributable to the city, the entire amount of the tax erroneously paid shall be refunded to the claimant. If the error is attributable to the claimant, the city shall retain an administrative fee as set forth in a resolution of the city council from the amount to be refunded to cover the city's expenses.

F. In accordance with California Government Code sections 935(b) and 945.6, all claims shall be presented as provided in this section and acted upon by the city prior to the filing of any action on such claims and no such action may be maintained by a person who has not complied with the requirements of this section.

G. Any action brought against the city upon any claim or demand shall conform to the requirements of Sections 940—949 of the California Government Code. Any action brought against any employee of the city shall conform with the requirements of section 950—951 of the California Government Code.

(Ord. No. 1652 N.C.(2d), § 1, 7-12-2011)