§ 3.05.050. Tax imposed.

(a)

There is established and imposed a cannabis business tax at the rates set forth in this chapter.

(b)

Tax on commercial cannabis businesses by gross receipts:

(1)

Every person who is engaged in a commercial cannabis business as defined in this chapter in the unincorporated area of the county shall pay an annual commercial cannabis business tax. The initial tax rate effective July 1, 2018 through June 30, 2020 shall be set at four percent (4%) of the gross receipts per fiscal year.

(2)

Beginning on July 1, 2020, such tax rate shall automatically increase each fiscal year in two percent increments, not to exceed the maximum tax rate of ten percent per fiscal year on gross receipts, unless the board of supervisors, by a ⅗ths vote, approves maintaining the current tax rate for the upcoming fiscal year. By a separate ⅗ths vote, the board of supervisors may decrease the tax rate for the upcoming fiscal year, as long as the rate stays within the above-listed range.

(3)

The board of supervisors may, in its discretion, at any time by ordinance, exempt or except certain categories of cannabis businesses from the commercial cannabis business tax or establish differing tax rates for different categories of cannabis businesses, subject to the maximum rate of ten percent of gross receipts under subsection B.2 of this section.

(4)

Notwithstanding subsections (b)(1) and (b)(2) above, unless amended by the board of supervisors pursuant to subsection (b)(3) of this section, testing laboratories, as defined in 3.05.040, are not obligated to pay a commercial cannabis business tax established by this ordinance.

(3)

Revenue from the commercial cannabis business tax can be spent for unrestricted general revenue purposes.

(Ord. No. 3361, § 1, 3-6-18)