Santa Cruz County
CA

Agenda Item
DOC-2017-966

Consider approval in concept of ordinance amending Chapter 4.06 of the Santa Cruz County Code to adjust taxation rates for specified cannabis business, and schedule final adoption for the next available agenda, as outlined in the memorandum of the County Administrative Officer

Information

Department:County Administrative OfficeSponsors:County Administrative Officer Carlos J. Palacios
Category:CAO - Board LetterFunctions:General Government

Board Letter

On October 24, 2017, your Board lowered the cannabis business tax rate for cannabis cultivation business and cannabis manufacturing business. Per the Board's direction, the rates for such business will be lowered to five percent of gross receipts for years 2018 and 2019, then raised to six percent of gross receipts for years 2020 and 2021, then raised to seven percent of gross receipts for year 2022 and thereafter.

 

Measure K requires that your Board's decision be executed via an ordinance. Accordingly, attached as Exhibit A is a draft ordinance amending County Code Section 4.06.070(C) to enact the changes the Board has ordered. Exhibit B contains a red-lined copy of that section demonstrating the specific language being added.

 

It is, therefore, RECOMMENDED that your Board adopt the attached ordinance amending County Code Section 4.06.070(C) documenting changes to the cannabis business tax rate for cannabis cultivation business and cannabis manufacturing business, make the recommended CEQA Findings, and instruct staff to place the ordinance on your next available agenda for final adoption.

 

 

 

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