HomeMy WebLinkAboutReso 2019-005RESOLUTION NO. 2019-005
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA SETTING THE CANNABIS BUSINESS TAX
AT 7% OF GROSS RECEIPTS
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 the 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
the approval of a simple-majority vote of the electorate; and
WHEREAS, in November 2018, the voters of the City of Chula Vista approved
Ordinance No. 3434, which then became effective in December 2018; and
WHEREAS, Chula Vista Municipal Code Section 5.21.050 imposes on every cannabis
business in the City, excluding cannabis cultivation businesses, an annual tax rate to be
established by ordinance or resolution of the City Council within the range of 5% up to a
maximum of 15% of the business’s gross receipts; and
WHEREAS, staff surveyed cannabis business gross receipts tax rates statewide and found
the state average to be approximately 6% for all cannabis businesses, excluding commercial
cannabis cultivation businesses; and
WHEREAS, staff has determined that the City of San Diego has implemented an 8% tax
for retail cannabis businesses; and
WHEREAS, staff is recommending that the City Council establish the initial Cannabis
Business Tax rate at 7%, pursuant to Chula Vista Municipal Code Section 5.21.050.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chula
Vista, that it does hereby establish the Cannabis Business Tax rate at 7%, pursuant to Chula
Vista Municipal Code Section 5.21.050.
DocuSign Envelope ID: 04DF335E-0D5F-46BB-BBFB-8EB9DEC8A719
Resolution No. 2019-005
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. 2019-005 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