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CC - (1) Discussion of Potential Excise Tax on Commercial Cannabis Businesses; (2) Direction to the City Manager Regarding a Commercial Cannabis Excise Tax Ballot Measure; and (3) Direction to the City Manager as Deemed Appropriate.
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Meeting Date: October 9, 2017
Contact Person/Dept: Jesse Mays/City Manager's Office
Phone Number: (310) 253-6009
Fiscal Impact: Yes [] No [X] General Fund: Yes [] No [X]
Public Hearing: [] Action Item: [x] Attachments: [X]
Commission Action Required: Yes [X] No [] Date:
Public Notification: (E-Mail) Meetings and Agendas - City Council (10/04/17), GovDelivery E-mail Lists: Marijuana, Fiscal and Budget Issues, Chamber of Commerce, Press Organizations (10/3/17)
Department Approval: John Nachbar, City Manager (10/04/17)
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RECOMMENDATION
Staff recommends the City Council (1) discuss a potential excise tax on commercial cannabis businesses in the City; and (2) provide direction to the City Manager regarding an excise tax ballot measure; and (3) provide other direction to the City Manager as deemed appropriate.
BACKGROUND
The City Council's Strategic Plan, Goal Five ("Identify New Revenue Sources to Maintain Financial Stability"), Objective One ("Potential Retail Marijuana Excise Tax") states that if the City Council will "consider a cannabis tax for placement on the ballot during the April 2018 municipal election." In addition, the Plan states that there will be "analysis by and recommendations from the Finance Advisory Committee (FAC) on a marijuana tax by the end of 2017."
It is anticipated that City cannabis business permit and application fees charged to cannabis businesses should pay for all of the City's costs for cannabis business regulation enforcement, and cannabis business application review and processing, by setting these fees as levels such that the City recovers 100% of its costs as...
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