Sec. 19-125. Cannabis business tax.
A.Beginning January 1, 2023, a cannabis business tax is imposed upon each person who is engaged in business as a cannabis business.
B.The initial rate of the cannabis business tax shall be as follows:
1.For every person who operates a testing laboratory: one percent (1%) of gross receipts.
2.For every person who operates a dispensary or delivery business: four percent (4%) of gross receipts.
3.For every person who engages in a cannabis manufacturing, processing, distribution, or any other cannabis business not described in subsection (B)(1) or (2) of this section: two percent (2%) of gross receipts.
C.The City Council may, by resolution or ordinance, adjust the rate of the cannabis business tax up to the following maxima:
1.For every person who engages in the operation of a testing laboratory, the maximum tax rate shall not exceed two percent (2%) of gross receipts.
2.For every person who engages in the retail sales of cannabis as a dispensary or delivery business, the maximum tax rate shall not exceed eight percent (8%) of gross receipts.
3.For every person who engages in a cannabis manufacturing, processing, distribution, or any other type of cannabis business not described in subsection (C)(1) or (2) of this section, the maximum tax rate shall not exceed six percent (6%) of gross receipts.
D.In addition, there is hereby imposed on every cannabis business in the City:
1.An additional tax of up to one percent (1%) of the gross receipts from high-potency cannabis and each high-potency cannabis product cultivated, manufactured, or sold by a taxpayer, multiplied by the percent of tetrahydrocannabinol (THC) content of the product above 17% for cannabis flower and 50% for cannabis products; and
2.An additional tax of 20% of gross receipts from sweetened cannabis beverages.
E.The City Council may, by resolution, in its discretion, implement a tax rate lower than the maximum rates established in subsections (B) through (D) of this section for all persons engaged in cannabis business, or establish differing tax rates for different categories of cannabis business. The City Council may, by resolution, also decrease or increase such tax rates; provided, that the tax rate is not above the maximum tax rates established in subsections (B) through (D) of this section. (Ord. 3657 § 1, 2022)