RESOLUTION NO. 2026-XXX
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF UNION CITY
INCREASING THE CANNABIS BUSINESS TAX RATE APPLICABLE TO
RETAILERS PURSUANT TO UNION CITY MUNICIPAL CODE CHAPTER
3.24 WHEREAS, on December 11, 2018, following voter approval, the City Council adopted Ordinance No. 854-18, adding Chapter 3.24 (Cannabis Business Tax) to the Union City Municipal Code (UCMC), which authorizes the City Council to set cannabis business tax rates by resolution; and
WHEREAS, pursuant to UCMC Chapter 3.24, cannabis retailers are taxed on gross receipts from the retail sale of cannabis and cannabis products, and the current tax rate for retailers is four percent (4%); and
WHEREAS, pursuant to UCMC Section 3.24.050, the City Council may, by resolution, adjust the cannabis business tax rate for retailers up to an amount not to exceed six percent (6%); and
WHEREAS, the City Council desires to adjust the cannabis business tax rate applicable to retail cannabis businesses to support essential City services and ensure the regulated market contributes proportionately to community impacts; and WHEREAS, the City Council, at any time, may consider market conditions, cannabis retail operator feedback, and statewide trends when determining the appropriate tax rate for Union City’s regulated cannabis retail sector.
NOW, THEREFORE, BE IT RESOLVED that effective [INSERT DATE], the cannabis business tax rate applicable to cannabis retail businesses operating within the City of Union City is hereby set at [INSERT] percent of gross receipts from the retail sale of cannabis and cannabis products, as defined in UCMC Chapter 3.24; and BE IT FURTHER RESOLVED that the City’s Tax Administrator is directed to take all actions necessary to implement this Resolution, including updating forms, notices, and procedures consistent with UCMC Chapter 3.24.
Resolution No. 2026-XXX
Adjustment to Cannabis Business Tax
PASSED, APPROVED, AND ADOPTED by the City Council of the City of Union City at a regular meeting held on April 28, 2026, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
APPROVED:
GARY SINGH
Mayor
ATTESTED: APPROVED AS TO FORM:
THAI NAM N. PHAM
City Clerk
KRISTOPHER J. KOKOTAYLO
City Attorney