REQUEST FOR CITY COUNCIL ACTION
DATE: 12/07/2022
TO: Honorable Mayor and City Council Members
FROM: Legal and Risk Management
SUBJECT:
Title
Ordinance setting commercial cannabis business tax rates pursuant to Measure G adopted by the voters.
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EXECUTIVE SUMMARY:
Corona Municipal Code Chapter 3.38, enacted by Ordinance No. 3352 and approved by a majority vote at the November 8, 2022 General Municipal Election, establishes the maximum rate of the commercial cannabis business tax. Chapter 3.38 authorizes the City Council to downwardly adjust the rate of the tax without voter approval. The attached Ordinance No. 3359 sets the initial rates for the commercial cannabis business tax.
RECOMMENDED ACTION:
Recommended action
That the City Council introduce, by title only, and waive full reading of Ordinance No. 3359 setting commercial cannabis business tax rates.
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BACKGROUND & HISTORY:
On October 21, 2020, the City Council adopted Ordinance No. 3321 adding Chapter 5.36 to the Corona Municipal Code ("CMC") to permit and regulate certain types of commercial cannabis businesses within the City. The City Council also adopted a resolution establishing Rules and Regulations for Permitting Commercial Cannabis Businesses, the most current version of which is set forth in Resolution No. 2021-022. Section V(C)(4)(c) of said Rules and Regulations requires commercial cannabis businesses operating within the City to pay an operating fee established by the City Council.
On July 6, 2022, the City Council adopted Resolution No. 2022-102 calling for the placement of a tax measure on the ballot for the November 8, 2022 General Municipal Election to establish a tax on commercial cannabis businesses operating within the City ("Cannabis Tax Measure"). If approved by a majority of the City voters, the Cannabis Tax Measure would add Chapter 3.38 to the CMC.
ANALYSIS:
The provisional results from the November 8, 2022 election indicate that the Cannabis Tax Meas...
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