HomeMy WebLinkAboutCC Resolution 15157 (San Rafael Cannabis Industry Tax Rate Setting)RESOLUTION NO.15157
RESOLUTION SETTING LOWER CANNABIS INDUSTRY TAX RATES FOR
CANNABIS DELIVERY BUSINESSES, FOR THE PERIOD OF JANUARY 1,
2023 THROUGH DECEMBER 31, 2024
WHEREAS, in June 2018, San Rafael voters approved Measure G (Ordinance
No. 1961, codified at Chapter 3.40 of the San Rafael Municipal Code), which imposes a
special business tax on businesses engaged in commercial cannabis activity in the City;
and; and
WHEREAS, the cannabis business tax ordinance authorizes the City Council to
adjust tax rates by resolution. Tax rates shall be set for a minimum of a two (2) year
term. The rate may not exceed 8%; and
WHEREAS, the City recognizes the volatility of the newly-legalized cannabis
market and desires to set tax rates to balance the financial needs of the City and to
support and encourage the industry to engage in a regulated market; and
WHEREAS, the City Council recognizes the economic challenges facing local
businesses, particularly cannabis delivery services, and wishes to support these
businesses and provide temporary tax relief; and
WHEREAS, cannabis businesses in San Rafael with license type 9, non-
storefront retailer (delivery only), currently pay a tax of 4% of gross receipts on a
quarterly basis.
NOW THEREFORE, BE IT RESOLVED that, pursuant to San Rafael Municipal
Code section 3.40.050, the City Council hereby sets the tax rate for cannabis
businesses in San Rafael with license type 9, non-storefront retailer (delivery only) at
2% of gross receipts, effective January 1, 2023 through December 31, 2024, and 4% of
gross receipts beginning January 1, 2025. Tax rates for cannabis businesses with other
license types shall be unmodified by this resolution.
I, LINDSAY LARA, CLERK of the City of San Rafael, hereby certify that the
foregoing resolution was duly and regularly adopted by the City Council of the City of San
Rafael, Marin County, California, at a regular meeting, held on the 7th day of November
2022, by the following vote, to wit:
AYES: COUNCILMEMBERS: Bushey, Hill, Kertz, Llorens Gulati & Mayor Kate
NOES: COUNCILMEMBERS: None
ABSENT: COUNCILMEMBERS: None
LINDSAY LARA, City Clerk