ATTACHMENT N
1 City Council Meeting: June 25, 2024 Santa Monica, California
RESOLUTION NUMBER (CCS)
(City Council Series)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA MONICA
MODIFYING THE CITY'S BUSINESS LICENSE TAX RATES FOR CANNABIS
BUSINESSES PURSUANT TO SANTA MONICA MUNICIPAL CODE SECTION
6.204.040
WHEREAS, on November 8, 2022, the voters approved Measure HMP, which added Chapter 6.204 (Cannabis Business Tax) to the Santa Monica Municipal Code; and WHEREAS, Chapter 6.204 established the initial and current cannabis business license tax rates as: (a) 3% of gross receipts for Adult-Use Non-Medicinal Cannabis Retailers for the sale of Adult-Use Non-Medicinal Cannabis or Adult-use Non-Medicinal Cannabis products; (b) 2% of gross receipts for Medicinal Cannabis Retailers from the retail sale of Medicinal Cannabis or Medicinal Cannabis products; and (c) 1% of gross receipts relating to the distribution, manufacturing, cultivation, or laboratory testing of Cannabis or Cannabis products; and
WHEREAS, Santa Monica Municipal Code Section 6.204.040 authorizes the City Council to increase the tax rate for cannabis businesses up to “maximum tax rate of ten percent (10%) without voter approval”; and
WHEREAS, the City Council has considered cannabis business license tax rates in neighboring jurisdictions and determined that it is appropriate to increase the business license tax for cannabis businesses as set forth in this resolution.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA MONICA DOES RESOLVE AS FOLLOWS:
2 SECTION 1. Pursuant to Santa Monica Municipal Code Section 6.204.040; the following cannabis business license tax rates shall be established effective January 1, 2025:
(a) the cannabis business license tax for Adult-use Non-Medicinal Cannabis or Adult-use Non-Medicinal Cannabis products shall be __% of the gross receipts for such sales; and
(b) the cannabis business license tax for Medicinal Cannabis or Medicinal Cannabis products shall be __% of the gross receipts for such sales.
SECTION 2. The City Clerk shall certify to the adoption of this Resolution and thenceforth and thereafter the same shall be in full force and effect.
APPROVED AS TO FORM:
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Douglas Sloan, City Attorney