Chapter 3.85
PERSONAL CANNABIS CULTIVATION TAX
Sections:
3.85.070 Termination of personal cannabis cultivation activities.
3.85.080 Delinquency notice by city.
3.85.090 Tax deemed debt to city.
3.85.100 Tax assessment – Nonpayment – Fraud.
3.85.110 Tax assessment – Notice requirements.
3.85.120 Tax assessment – Hearing.
3.85.130 Fines, penalties and remedies for chapter violation – Taxes not waived.
3.85.010 Short title.
This chapter shall be known as the Rancho Cordova personal cannabis cultivation tax ordinance. [Ord. 19-2010 § 1].
3.85.020 Purpose and intent.
This chapter is enacted solely to raise revenue for municipal purposes and is not intended for regulation. Revenue raised by this chapter may be used for a variety of city services, including protecting the city’s housing stock and maintaining strong neighborhoods. [Ord. 19-2010 § 1].
3.85.030 Definitions.
A. “Personal cannabis cultivation” shall mean the activity of cultivating Cannabis sativa L., or any of its derivatives, on private property for personal consumption by the owner, lawful occupant, or other lawful resident or guest of the private property owner, or lawful occupant. “Personal cannabis cultivation” specifically excludes cannabis cultivation activities which are done as part of a cannabis business. “Cannabis business” means any business, nonprofit organization, or activity including, but not limited to, planting, cultivation, harvesting, transporting, manufacturing, compounding, converting, processing, preparing, storing, packaging, testing, or wholesale and/or retail sales of marijuana, any part of the plant Cannabis sativa L., or any of its derivatives.
B. “Cannabis grower” shall mean the owner, lawful occupant or other lawful resident of a property where the individual, or his/her guest, is engaged in personal cannabis cultivation. For purposes of this chapter, the owner, lawful occupant or other lawful resident of the private property that allows another individual to engage in personal cannabis cultivation on such property shall be responsible for all obligations of a cannabis grower under this chapter.
C. “Cultivated area” shall mean:
1. For indoor cultivation, the greater of either (a) the total area of a property that is densely or primarily occupied by marijuana cultivation, or (b) one square foot per juvenile or mature marijuana plant indoors on the property; and
2. For outdoor cultivation, the greater of either (a) the total area of the property that is densely or primarily occupied by marijuana cultivation, or (b) 12.5 square feet per juvenile or mature plant outdoors on the property. [Ord. 19-2010 § 1].
3.85.040 Payment of tax.
A. In addition to any other requirements imposed by federal, state or local law, each cannabis grower engaged in personal cannabis cultivation shall pay the city an excise tax as follows:
1. For indoor cultivation:
a. If the cultivated area is equal to or less than 25 square feet, $600.00 per year for each square foot of cultivated area; or
b. If the cultivated area is over 25 square feet, $900.00 per year for each square foot of cultivated area.
For example: A residence where the cultivated area indoors is 10.5 square feet shall pay $6,300 annually ($600.00 per square foot times 10.5 square feet). A residence where the cultivated area indoors is 30 square feet shall pay $27,000 annually ($900.00 per square foot times 30 square feet).
2. For outdoor cultivation:
a. If the cultivated area is equal to or less than 25 square feet, $600.00 per year for each 12.5 square feet of cultivated area; or
b. If the cultivated area is over 25 square feet, $900.00 per year for each 12.5 square feet of cultivated area.
For example: A residence where the cultivated area outdoors is 25 square feet shall pay $1,200 annually ((25 square feet divided by 12.5 square feet) equals two, times $600.00). A residence where the total cultivated area outdoors is 30 square feet shall pay $2,160 annually ((30 square feet divided by 12.5 square feet) equals 2.4, times $900.00).
3. If a property has cultivated area both indoors and outdoors, the cannabis grower shall pay the sum of the indoor and outdoor taxes.
B. The city council may impose the tax authorized by this section at a lower rate. No action by the city council under this subsection shall prevent it from subsequently increasing the tax rate for personal cannabis cultivation to the maximum rate specified in this section.
C. This tax is based upon the voluntary action of the cannabis grower to engage in personal cannabis cultivation. [Ord. 19-2010 § 1].
3.85.050 Registration.
A. Before engaging in personal cannabis cultivation, a cannabis grower must register with the city by completing and filing an application form for personal cannabis cultivation with the city’s finance department.
B. Among other information, the registration application will require the cannabis grower to provide the following information:
1. Address where personal cannabis cultivation will occur;
2. Property interest of the cannabis grower (i.e., whether the cannabis grower is the property owner, lawful occupant or lawful resident of the property); and
3. Where on the property personal cannabis cultivation will occur. This will be shown by attaching a diagram depicting the location that will be used for cultivation, including the dimensions of the area to be cultivated.
C. Failure to register with the city before engaging in personal cannabis cultivation is a violation of this chapter and punishable pursuant to RCMC 3.85.130.
D. If the cannabis grower is not the owner of the property, the cannabis grower shall provide the city a signed declaration from the owner of the property indicating that the cannabis grower has permission to engage in personal cannabis cultivation activities on the property. Such declaration by the owner of the property shall include the following statement: “I hereby declare under penalty of perjury that the foregoing is true and correct.” [Ord. 19-2010 § 1].
3.85.060 Payment – Timing.
A. First payment of the personal cannabis cultivation tax imposed by RCMC 3.85.040 shall be made at the same time the cannabis grower registers with the city pursuant to RCMC 3.85.050. All subsequent annual payments shall be due on that date’s anniversary.
B. Tax payments not received before the deadline imposed under this section will be subject to a late fee of one and one-half percent per month of the amount past due, plus all reasonable collection fees and costs.
C. The city shall send a reminder of the personal cannabis cultivation tax due date to any persons subject to the provisions of this chapter; however, failure to send such a reminder or bill shall not affect the validity of the tax, interest or penalty due under the provisions of this chapter. [Ord. 19-2010 § 1].
3.85.070 Termination of personal cannabis cultivation activities.
A. Cannabis growers will only be responsible for paying the tax imposed under this chapter while engaging in personal cannabis cultivation. Once the cannabis grower completely terminates all personal cannabis cultivation activities, it shall be the cannabis grower’s responsibility to inform the city’s finance department of such termination in order to avoid future tax obligations. The cannabis grower shall provide the city’s finance department with a written declaration containing the following statement: “I hereby declare under penalty of perjury that I have ceased all Personal Cannabis Cultivation activities.”
B. If requested by the city, the cannabis grower will permit city representatives to inspect the property, or portion of the property, previously used for personal cannabis cultivation in order to verify that the cultivation has ceased within 15 days of the date the cannabis grower provides the city with the written declaration under subsection (A) of this section. If the inspection by city personnel reveals that the cannabis grower has not ceased personal cannabis cultivation activities on the property, the cannabis grower shall be responsible for paying all costs associated with the city inspection.
C. Using all evidence presented by the cannabis grower, and any evidence gathered by the city, the city will make its determination as to whether the personal cannabis cultivation has been terminated within 30 days of the date the cannabis grower provides the city with the written declaration under subsection (A) of this section.
D. Once the city receives the cannabis grower’s declaration under this section and determines that personal cannabis cultivation has been terminated, the cannabis grower shall not be responsible for making any future personal cannabis cultivation tax payments until such individual reengages in personal cannabis cultivation activities. Prior to reengaging in personal cannabis cultivation activities, the cannabis grower shall register with the city as required in RCMC 3.85.050.
E. The termination of personal cannabis cultivation activities shall not relieve the cannabis grower from paying any taxes and fees owed to the city by the cannabis grower prior to termination under this chapter. [Ord. 19-2010 § 1].
3.85.080 Delinquency notice by city.
The city will send a delinquency notice to persons subject to the provisions of this chapter which fail to pay the personal cannabis cultivation tax as provided in RCMC 3.85.060; however, failure to send such notice or bill shall not affect the validity of any tax, interest or penalty due under the provisions of this chapter. [Ord. 19-2010 § 1].
3.85.090 Tax deemed debt to city.
The amount of any tax, penalties and interest imposed by the provisions of this chapter shall be deemed a debt to the city, and any cannabis grower engaged in personal cannabis cultivation without having paid the tax under this chapter shall be liable to an action in the name of the city in any court of competent jurisdiction for the amount of the tax, and penalties and interest imposed on such individual. [Ord. 19-2010 § 1].
3.85.100 Tax assessment – Nonpayment – Fraud.
A. If the cannabis grower fails to pay the full amount of the personal cannabis cultivation tax, the finance director may make and give notice of an assessment for the amount of tax owed by a cannabis grower under the provisions of this chapter on the annual date such taxes are due.
B. The notice of assessment shall separately set forth the amount of any tax due, and shall include the amount of any penalties, costs or interest accrued on each amount to the date of the assessment. [Ord. 19-2010 § 1].
3.85.110 Tax assessment – Notice requirements.
The notice of assessment shall be served upon the cannabis grower either by personal service, or by a deposit of the notice in the United States mail, postage prepaid thereon, addressed to the cannabis grower at the address of the location of the private property appearing on the face of the registration form under RCMC 3.85.050. For the purposes of this section, a service by mail is complete at the time of deposit in the United States mail. [Ord. 19-2010 § 1].
3.85.120 Tax assessment – Hearing.
A. Within 10 days after the date of service of a notice of assessment under RCMC 3.85.110, the cannabis grower may apply in writing to the finance director for a hearing on the assessment.
B. If application for a hearing before the finance director is not made within the time herein prescribed, the tax assessed by the finance director shall become final and conclusive.
C. Within 30 days of the receipt of any such application for hearing, the finance director shall cause the matter to be set for hearing before him or her not later than 30 days after the date of application, unless a later date is agreed to by the finance director and the cannabis grower requesting the hearing.
D. Notice of such hearing shall be given by the finance director to the cannabis grower not later than five days prior to such hearing. At such hearing, said cannabis grower may appear and offer evidence why the assessment as made by the finance director should not be confirmed and fixed as a tax.
E. After such hearing, the finance director shall determine and reassess the proper tax to be charged and shall give written notice thereof to the cannabis grower in the manner prescribed in RCMC 3.85.110. [Ord. 19-2010 § 1].
3.85.130 Fines, penalties and remedies for chapter violation – Taxes not waived.
A. Nothing in this chapter shall limit the city from using any remedy legally available for violations of this chapter, including, but not limited to, the fines and penalties under RCMC 16.18.205.
B. The conviction and punishment of any person for failure to register with the city prior to engaging in personal cannabis cultivation activities or pay the required tax shall be punishable by all remedies by law, and shall not excuse or exempt such person from any civil action for the tax debt unpaid at the time of such conviction. [Ord. 19-2010 § 1].