City of Culver City - File #: 24-391

• File #: 24-391
• Version: 1
• Type: Minute Order
• Status: Action Item
• File created: 10/12/2023
• In control: City Council Meeting Agenda
• On agenda: 10/23/2023
• Title: CC - ACTION ITEM: (1) Consideration of the Finance Advisory Committee's Recommendation to Decrease the Cannabis Business Tax Rate for Cannabis Distribution from 2% to 0%; (2) If Desired, Introduction of an Ordinance Amending Culver City Municipal Code Section 11.32.025.E to Decrease the Cannabis Business Tax Rate for Cannabis Distribution from 2% to 0%, Effective January 1, 2024; and (3) Direction to the City Manager as Deemed Appropriate.

Date	Ver.	Action By	Action	Result
10/23/2023	1	City Council Meeting Agenda

title
CC - ACTION ITEM: (1) Consideration of the Finance Advisory Committee's Recommendation to Decrease the Cannabis Business Tax Rate for Cannabis Distribution from 2% to 0%; (2) If Desired, Introduction of an Ordinance Amending Culver City Municipal Code Section 11.32.025.E to Decrease the Cannabis Business Tax Rate for Cannabis Distribution from 2% to 0%, Effective January 1, 2024; and (3) Direction to the City Manager as Deemed Appropriate.

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Meeting Date: October 23, 2023

Contact Person/Dept.: Jesse Mays, Assistant City Manager
Lisa Soghor, Chief Financial Officer

Phone Number: City Manager's Office: (310) 253-6000
Finance Department: (310) 253-5865

Fiscal Impact: Yes [X] No [] General Fund: Yes [X] No []

Attachments: Yes [X] No []

Commission Action Required: Yes [X] No [] Date: 10/12/2023
Commission Name: Finance Advisory Committee

Public Notification: (E-Mail) Meetings and Agendas - City Council (10/17/2023)

Department Approval: John Nachbar, City Manager (10/XX/2023)
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RECOMMENDATION

Staff recommends the City Council (1) consider the recommendation from the Finance Advisory Committee (FAC) to decrease the Cannabis Business Tax rate for Cannabis Distribution from 2% to 0%; (2) if desired, introduce an ordinance amending Culver City Municipal Code (CCMC) Section 11.32.025.E to decrease the Cannabis Business Tax Rate for Cannabis Distribution to 0% effective January 1, 2024; and (3) provide other direction to the City Manager, as deemed appropriate.


BACKGROUND

At the April 10, 2018 General Municipal Election, the Culver City voters approved Measure A, a cannabis business tax. The ballot measure added Chapter 11.32 to the CCMC, which governs the cannabis business tax. The initial and maximum rates for the tax, as approved by voters, are as follows:

* Retail (medicinal): range of 5 -8% with an initial rate of 5%
* Retail (ad...