HomeMy WebLinkAboutReso 30-19 Cannabis TaxRESOLUTION NO. 30-19
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
MORRO BAY, CALIFORNIA, SETTING CANNABIS TAX,
PENALTY AND INTEREST RATES PURSUANT TO VOTER
APPROVED CHAPTER 3.70 (CANNABIS TAX) OF THE
MORRO BAY MUNICIPAL CODE
THE CITY COUNCIL
City of Morro Bay, California
WHEREAS, a General Municipal Election was held in the City of Morro Bay, California,
on November 6, 2018, at which the voters adopted by majority vote an ordinance for the
taxation of commercial cannabis operations and commercial cannabis cultivation ("Cannabis
Tax Ordinance"); and
WHEREAS, the Cannabis Tax Ordinance as approved by the voters is codified in
Chapter 3.70 (Cannabis Tax) of Title 3 (Revenue and Finance), of the Morro Bay Municipal
Code ("MBMC"); and
WHEREAS, the voters approved maximum cannabis tax rates of no more than ten
percent (10%) of proceeds from a commercial cannabis operation, and no more than $25 per
square foot utilized for commercial cannabis cultivation operations, as provided for in MBMC §§
3.70.020(A-B); and
WHEREAS, the voters approved a penalty rate of no more than 25% of the amount of
cannabis tax owed if not paid on time, and an interest rate on unpaid taxes of no more than
10%, as provided for in MBMC § 3.70.050(A); and
WHEREAS, by Council action, these various tax, penalty and interest rates can be set
lower than the maximum rates, and likewise increased up to the maximum rates later in time, as
provided for in MBMC §§ 3.70.090, 3.70.020, 3.70.030 and 3.70.050; and
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF MORRO BAY,
CALIFORNIA, DOES HEREBY RESOLVE, DECLARE, DETERMINE AND ORDER AS
FOLLOWS:
Section 1. The forgoing recitals are true and correct and are incorporated herein by
this reference.
Section 2. Pursuant to the authority provided to the City Council by both voter action
on November 6, 2018 approving the Morro Bay Cannabis Tax Ordinance, as well as Morro Bay
Municipal Code §§ 3.70.090, 3.70.020, 3.70.030 and 3.70.050, the City Council hereby sets
cannabis tax, penalty and interest rates under Chapter 3.70 (Cannabis Tax) of Title 3 (Revenue
and Finance), of the Morro Bay Municipal Code as follows:
A. Commercial cannabis operations tax —
(voters approved a maximum rate of 10%)
set at five percent (5%) of proceeds
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RESOLUTION NO. 30-19
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B. Penalty rate for late payment of taxes —set at twenty-five percent (25%) of the
amount of the tax due (voters approved a maximum rate of 25%)
C. Interest rate for late payment of taxes —set at ten percent (10%) of the unpaid
tax calculated from the due date of the tax (voter approved maximum rate of
10%); and, affirm the interest rate is assessed monthly on the principle of unpaid
tax
Section 3. The City Council will prospectively consider addressing further the
commercial cannabis cultivation tax rate because commercial cannabis cultivation is not
presently authorized in the City.
Section 4. The City Council reserves the option and right to subsequently modify the
above rates, to lower rates and/or up to the maximum rates, pursuant to Morro Bay Municipal
Code §§ 3.70.090, 3.70.020, 3.70.030 and 3.70.050.
Section 5. The City Clerk shall certify to the passage and adoption of this Resolution
and enter it into the book of original Resolutions. This Resolution shall be effective immediately
upon passage and adoption.
PASSED, APPROVED AND ADOPTED by the City Council of the City of Morro Bay,
California, at a regular meeting held on the 141h day of May, 2019 on the following vote:
AYES: Headding, Addis, Davis,
NOES: None
ABSENT: Heller
ABSTAIN: None
ATTEST:
S�
NA SWANSON, City Clerk
McPherson
01181.0001 /552980.1