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CC - ACTION ITEM: Adoption 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.
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Meeting Date: November 13, 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 (11/07/2023)
Department Approval: John Nachbar, City Manager (11/06/2023)
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RECOMMENDATION
Staff recommends the City Council adopt 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.
BACKGROUND
On October 23, 2023, City Council introduced for first reading an ordinance amending CCMC Section 11.32.025.E to decrease the Cannabis Business Tax Rate for Cannabis Distribution to 0% effective January 1, 2024.
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 (adult-use): range of 6-10% with an initial rate of 6%
* Manufacturing: range of 4-6% with an initial rate of 4%
* Distribution: range of 2-6% with an initial rate of 2%
* Testing: 1-1.5% with an initial rate of 1%
* Cultivation: $12 per square foot of canopy
The initial rat...
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