HomeMy WebLinkAboutReso 2019-006 RESOLUTION NO. 2019-006
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA SETTING THE CANNABIS CULTIVATION
TAX AT $15 PER SQUARE FOOT OF CANOPY AND
REQUIRING ANNUAL CITY COUNCIL REVIEW OF THE
TAX EVERY JANUARY, BEGINNING IN 2021
WHEREAS, in March 2018, the City Council adopted Ordinance No. 3418, codified as
Chula Vista Municipal Code Chapter 5.19, which created a licensing and regulatory structure for
the operation of lawful cannabis businesses in the City of Chula Vista (the “Cannabis Licensing
Ordinance”); and
WHEREAS, the legal effectiveness of the Cannabis Licensing Ordinance was made
expressly contingent upon voter approval of a tax measure imposing an excise tax on all
commercial cannabis businesses in the City; and
WHEREAS, in August 2018, the City Council adopted Ordinance No. 3434, adding
Chapter 5.21, “Cannabis Business Tax,” to title 5 of the Chula Vista Municipal Code, subject to
approval of a simple-majority of the electorate; and
WHEREAS, in November 2018, the voters approved Ordinance No. 3434, which then
became effective in December 2018; and
WHEREAS, Chula Vista Municipal Code Section 5.21.060 imposes on every Cannabis
Business engaged in Commercial Cannabis Cultivation in the City, an annual tax in an amount to
be established by ordinance or resolution of the City Council within the range of $5 to $25 per
square foot of Canopy; and
WHEREAS, staff surveyed the municipal and county cannabis tax rates statewide and
determined that the majority of California cities that allow for cultivation set their square footage
tax at $25 per square foot of canopy; and
WHEREAS, the City Council desires to set the initial Commercial Cannabis Cultivation
tax at $15 per square foot of Canopy, pursuant to Chula Vista Munici pal Code section 5.21.060,
and to require an annual review of the tax by the City Council every January, beginning in 2021.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chula
Vista, that it does hereby establish the initial Commercial Cannabis Cultivation Tax at $15 per
square foot of Canopy, pursuant to Chula Vista Municipal Code Section 5.21.060, and require
annual City Council review of the tax every January, beginning in 2021.
DocuSign Envelope ID: 04DF335E-0D5F-46BB-BBFB-8EB9DEC8A719
Resolution No. 2019-006
Page No. 2
Presented by Approved as to form by
Kelley K. Bacon Glen R. Googins
Deputy City Manager City Attorney
PASSED, APPROVED, and ADOPTED by the City Council of the City of Chula Vista,
California, this 15th day of January 2019 by the following vote:
AYES: Councilmembers: Galvez, McCann, Padilla, and Casillas Salas
NAYS: Councilmembers: Diaz
ABSENT: Councilmembers: None
Mary Casillas Salas, Mayor
ATTEST:
Kerry K. Bigelow, MMC, City Clerk
STATE OF CALIFORNIA )
COUNTY OF SAN DIEGO )
CITY OF CHULA VISTA )
I, Kerry K. Bigelow, City Clerk of Chula Vista, California, do hereby certify that the foregoing
Resolution No. 2019-006 was duly passed, approved, and adopted by the City Council at a
regular meeting of the Chula Vista City Council held on the 15th day of January 2019.
Executed this 15th day of January 2019.
Kerry K. Bigelow, MMC, City Clerk
DocuSign Envelope ID: 04DF335E-0D5F-46BB-BBFB-8EB9DEC8A719