HomeMy WebLinkAboutCC Resolution 15372 (Extending Cannabis Business Tax Rate Temporary Reduction)As amended
RESOLUTION NO. 15372
RESOLUTION EXTENDING CANNABIS INDUSTRY TAX RATE OF ONE (1) PERCENT OF
ANNUAL GROSS RECEIPTS FOR CANNABIS DELIVERY BUSINESSES, FOR THE PERIOD
OF JANUARY 1, 2025, THROUGH DECEMBER 31, 2026
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 San Rafael; and
WHEREAS, San Rafael Municipal Code Chapter 3.40 authorizes the City Council to adjust
the tax rates of cannabis businesses by resolution provided the City Council sets tax rates for a
minimum of a two (2) year term and the rate does not exceed eight (8) percent of annual gross
receipts; and
WHEREAS, San Rafael recognizes the volatility of the legal cannabis market and desires
to set tax rates that balance the financial needs of the City with supporting cannabis operators as
they navigate the regulated cannabis marketplace; and
WHEREAS, in recognition of the economic challenges facing San Rafael’s cannabis non-
storefront retail (delivery) businesses, in November 2022 the San Rafael City Council adopted
Resolution No. 15157, which lowered the local business tax rate for San Rafael cannabis non-
storefront retail (delivery) businesses from four (4) percent to two (2) percent of annual gross
receipts for the period of January 1, 2022, through December 31, 2024; and
WHEREAS, San Rafael’s cannabis delivery businesses continue to navigate financial
burdens operating in California’s regulated cannabis marketplace; and
WHEREAS, based on the accompanying staff report, presentation, and discussion, the
City Council finds lowering the gross receipts tax rate to one percent for cannabis non-storefront
retailers (delivery) businesses for an additional two year period as this will reduce a key barrier
facing delivery operators while still generating revenue for the City of San Rafael;
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 one (1) percent of gross receipts,
effective January 1, 2025, through December 31, 2026, and four (4) percent of gross receipts
beginning January 1, 2027. 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 introduced and adopted at a regular meeting of the City Council of the
City of San Rafael, held on the 18th day of February 2025, by the following vote, to wit:
AYES:
NOES:
ABSENT:
Councilmembers: Bushey, Hill, Kertz, Llorens Gulati & Mayor Kate
Councilmembers: None
Councilmembers: None
_____________________
Lindsay Lara, City Clerk
