HomeMy WebLinkAbout2018-07-24 Written Communications - Item 7 AustinCouncil communications
Leslie Wolf Branscomb
Sr. Council Aide to Councilmember Pat Aguilar
(619) 495-7230
From: Austin, Gina [mailto:gaustin@austinlegalgroup.com]
Sent: Tuesday, July 24, 2018 4:18 PM
To: Patricia Aguilar; Francisco Estrada; Albert Velasquez; Steve C. Padilla; Mike Diaz; Leslie Wolf Branscomb
Cc: Kelly Broughton; Glen Googins; Gary Halbert; Kelley Bacon
Subject: Cannabis Tax Measure - July 24, 2018 Agenda Item #7
Dear Chula Vista Council Members and Staff,
Our office represents several entities that intend to apply for cannabis permits within the City of Chula Vista should a reasonable tax measure pass in November. However, each of these
entities is very concerned about the cultivation tax being proposed. The proposed $10-$15 per square foot tax on cultivation is above the state average. Further, setting the minimum
tax at $10 prevents the Council the flexibility it needs to adjust the tax if necessary. We propose that the tax measure only set a maximum and leave the minimum tax to the Council
to decide. The setting of a minimum tax by ballot initiative would require a separate ballot measure should the City find itself with too high of a tax to attract businesses thus creating
additional expenses for the City.
The tax measure appears to exclude Cannabis Nursery from tax provisions but it is hard to tell. It is desirable to exclude nurseries and in fact most cities do exclude nurseries or
tax them at a very low rate. However, Section 5.21.060 B states that nurseries are subject to 5.21.060 (presumable subsection C). This section appears to set the tax the same as the
general business tax. We would request that Cannabis Nurseries not be taxed. These plants will be taxed when they are moved to the flowering room.
Finally, we would request that medical sales to qualified medical patients with a State Identification Card (MMIC) be exempted from the gross receipts tax and section 5.21.040 (Q) be
amended accordingly.
Unfortunately, I will be unable to attend this evening's meeting but wanted to make sure that these comments were delivered to you prior to the meeting. Sorry for the lateness.
Thank you.
Gina M. Austin
AUSTIN LEGAL GROUP, APC | 3990 Old Town Ave., Ste A112, San Diego, CA 92110 |
Ofc: 619-924-9600 | Cell 619-368-4800 | Fax 619-881-0045
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