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(1) Discuss the Committee's Recent Assignment from the City Council to Consider Reducing the Cannabis Business Tax Rate for Cannabis Distribution from 2% to 0%; 2) Develop a Plan to Examine Cannabis Distribution Tax Rates, Form a Recommendation and Prepare a Report for City Council; 3) If Desired, Establish a Cannabis Distribution Tax Ad Hoc Subcommittee; and 4) Provide Direction to Staff.
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Meeting Date: October 11, 2023
Contact Person/Dept.: Jesse Mays/City Manager's Office
Phone Number: (310) 253-6000
Fiscal Impact: Yes [X] No [] General Fund: Yes [X] No []
Attachments: Yes [X] No []
Public Notification: (E-Mail) Meetings and Agendas -Finance Advisory Committee (10/05/2023), Cannabis (10/05/2023)
Department Approval: Lisa Soghor, Chief Financial Officer (10/05/2023)
RECOMMENDATION
Staff recommends the Finance Advisory Committee discuss the Committee's recent assignment from the City Council to consider reducing the Cannabis Business Tax Rate for Cannabis Distribution from 2% to 0%; 2) Develop a plan to examine cannabis distribution tax rates, form a recommendation and prepare a report for City Council; 3) If desired, establish a Cannabis Distribution Tax Ad Hoc Subcommittee; and 4) Provide direction to staff.
BACKGROUND
On August 28, 2023, the City Council, in response to a request by a representative from a permitted Culver City cannabis manufacturing, distribution, and delivery-only retail business, requested that staff agendize a discussion of whether to lower the cannabis business tax rate from 2% to 0%.
On September 11, 2023, the City Council discussed whether to reduce the Cannabis Business Tax Rate for Cannabis Distribution from 2% To 0% and voted to send the item to the Finance Advisory Committee for consideration with direction to return to the City Council with a report.
On the April 10, 2018 municipal election ballot, Culver City voters approved Measure A, a cannabis business tax. The ballo...
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