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HomeMy WebLinkAbout24334 RESOLUTION NO. 24334 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM SPRINGS, CALIFORNIA, RECITING THE FACT OF THE REGULAR MUNICIPAL ELECTION HELD ON NOVEMBER 7, 2017, DECLARING THE RESULT AND SUCH OTHER MATTERS AS ARE PROVIDED BY LAW. THE CITY COUNCIL OF THE CITY OF PALM SPRINGS, CALIFORNIA, HEREBY FINDS: A. A Regular Municipal Election was held and conducted in the City of Palm Springs, California, on Tuesday, November 7, 2017, as required by law. B. Notice of the election was given in time, form and manner as provided by law; that voting precincts were properly established; that election officers were appointed and that in all respects the election was held and conducted and the votes cast, received and canvassed and the returns made and declared in time, form and manner as required by the provisions of the laws of the State of California, and the Charter of the City of Palm Springs. C. Pursuant to § 8 of Resolution No. 24249, adopted by the City Council on June 21 , 2017, the Riverside County Registrar of Voters, at the direction of the City Clerk of the City of Palm Springs, canvassed the returns of the election and has certified the results to the City Council. The results are attached to this resolution as Exhibit A. THE CITY COUNCIL OF THE CITY OF PALM SPRINGS HEREBY DETERMINES, DECLARES, APPROVES, AND RESOLVES: SECTION 1. The whole number of ballots cast in the precincts except vote-by- mail ballots was 2,465. That the whole number of vote-by-mail ballots cast in the City was 9,939, making a total of 12,404 ballots cast in the City [50.32% Voter Turnout]. SECTION 2. The Regular Municipal Election was held for the purpose of electing: a. Two-members to the office of Member of the Palm Springs City Council; b. The submission to the qualified voters an ordinance imposing a '/2 cent general transactions and use tax [Measure "D"]; C. The submission to the qualified voters an ordinance imposing a gross receipts tax up to $0.15 per $1.00 of proceeds, on any Palm Springs cannabis business, Resolution No. 24334 Page 2 and a cultivation tax of up to $10.00 per square foot of cannabis cultivation area or fractional part thereof on Palm Springs cannabis business [Measure "E"]. SECTION 3. The names of persons voted for at the election for the office of Member of the Palm Springs City Council for the term ending December, 2021 are as follows: Judy Deertrack Henry Hampton Christy Gilbert Holstege Robert Julian Stone Glenn Flood Lisa Middleton Write-in Candidate Ameenah Fuller SECTION 4. The City Council pursuant to its right and authority, ordered submitted to the qualified voters the following question and ordinance [Measure "D"]: Palm Springs Essential Services ! Public Safety Measure To maintain essential city services, including rapid 911 emergency YES response, fire/police protection, add paramedic services, keep fire stations open/staffed, address homelessness, repair local streets/potholes, improve rapid response to assault, burglaries/crimes, keep public areas safe/clean, maintain senior services, attract/retain jobs/business, increase water conservation; shall the City of Palm Springs establish a '/2 cent sales tax; NO requiring annual independent audits/public oversight; all funds used locally? SECTION 5. The City Council pursuant to its right and authority, ordered submitted to the qualified voters the following question and ordinance [Measure "E"]: Palm Springs Cannabis Business Taxation Shall Palm Springs update the existing gross receipts tax on YES medical cannabis collectives and cooperatives to apply to all medical and adult-use cannabis businesses, apart from cultivation businesses, which will be taxed at a rate up to 10 dollars per square foot, with all revenue used in Palm Springs to maintain and improve essential city services, including public safety and youth NO drug prevention education; requiring annual independent audits and public oversight? SECTION 6. The number of votes given at each precinct, the number of votes for each qualified candidate and Measures "D" and "E" are attached hereto and incorporated herein as Exhibit A to this Resolution. Resolution No. 24334 Page 3 SECTION 7. The City Council determines and declares that Lisa Middleton and Christy Gilbert Holstege were elected to the office of Member of the Palm Springs City Council for the term ending December, 2021. SECTION 8. The City Council determines and declares that as a result of the election, a majority of the voters voting on Measure "D" imposing a % cent general transactions and use tax, did vote in favor of it, and that Measure "D" was carried, and shall be deemed adopted and ratified. SECTION 9. The Mayor and City Clerk are hereby authorized and directed to execute Ordinance No. 1945, "AN ORDINANCE OF THE CITY OF PALM SPRINGS, CALIFORNIA, IMPOSING A GENERAL TRANSACTIONS AND USE TAX" (attached hereto and incorporated herein as Exhibit B to this Resolution) and the City Clerk shall certify to the passage of Ordinance No. 1945, by the People of the City of Palm Springs, enter it into the book of original Ordinances, correct any non-substantive typographical errors, and cause such Ordinance to be codified in the Palm Springs Municipal Code. SECTION 10. The City Council determines and declares that as a result of the election, a majority of the voters voting on Measure "E" imposing a gross receipts tax up to $0.15 per $1.00 of proceeds, on any Palm Springs cannabis business, and a cultivation tax of up to $10.00 per square foot of cannabis cultivation area or fractional part thereof on Palm Springs cannabis business. SECTION 11. The Mayor and City Clerk are hereby authorized and directed to execute Ordinance No. 1946, "AN ORDINANCE OF THE CITY OF PALM SPRINGS, CALIFORNIA, IMPOSING A TAX ON CANNABIS BUSINESS ACTIVITY' (attached hereto and incorporated herein as Exhibit C to this Resolution) and the City Clerk shall certify to the passage of Ordinance No. 1946, by the People of the City of Palm Springs, enter it into the book of original Ordinances, correct any non-substantive typographical errors, and cause such Ordinance to be codified in the Palm Springs Municipal Code. SECTION 12. The City Clerk shall enter on the records of the City Council a statement of the results of the election, showing: a. The whole number of votes cast in the City; b. The qualified candidates voted upon; C. The measures voted upon; d. For what office each person was vote for; e. The number of votes given at each precinct to each qualified candidate, and for and against Measures "D" and "E;" Resolution No. 24334 Page 4 f. The total number of votes given in the City for each qualified candidate, and for and against Measures "D" and "E." SECTION 13. The City Clerk shall certify to the adoption of this resolution and enter it into the book of original resolutions. PASSED, APPROVED AND ADOPTED BY THE PALM SPRINGS CITY COUNCIL THIS 6T" DAY OF DECEMBER, 2017. David H. Ready, City Manager ATT ST: ony J. Me MMC City Clerk CERTIFICATION STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE ) ss. CITY OF PALM SPRINGS ) I, ANTHONY J. MEJIA, City Clerk of the City of Palm Springs, hereby certify that Resolution No. 24334 is a full, true, and correct copy, and was duly adopted at a regular meeting of the City Council of the City of Palm Springs on the 6th day of December, 2017 by the following vote: AYES: Councilmembers Kors, Mills, Roberts, Mayor Pro Tern Foat, and Mayor Moon NOES: None ABSENT: None ABSTAIN: None Ant ony J. Mejia, City Clerk EXHIBIT A * 4 O* *a REBECCA SPENCER V ART TINOCO Registrar of Voters +rar R ,•"' Assistant Registrar of Voters REGISTRAR OF VOTERS COUNTY OF RIVERSIDE F I I i < CERTIFICATE OF REGISTRAR OF VOTERS TO THE RESULTS OF THE CANVASS OF ELECTION RETURNS j i State of California ) ) ss. County of Riverside ) i I, REBECCA SPENCER, Registrar of Voters of said County, do hereby certify that, in pursuance of the provisions of Sections 15301, 15372, and 15374 of the California Elections Code, and the resolution adopted by the City Council, I did canvass the returns of the votes cast on November 7, 2017, as part of the j Consolidated General Election in the E i CITY OF PALM SPRINGS and I further certify that the statement of votes cast, to which this certificate is attached, shows the whole number of votes for each candidate for elective office and for and against each measure at said election, in said City, and in each precinct therein, and that the totals as shown for said election are full, true, and correct. Dated this 16"'day of November 2017. REBECCA SPENCER Registrar of Voters Race athbone Chief Deputy Registrar of Voters 2724 Gateway Drive I Riverside, CA 92507-0918 (951)486-7200 1 TTY(951) 697-8966 1 FAX(951)486-7272 www.voteinfo.net 11116117 1:25 PM RIVERSIDE COUNTY Statement of Vote ?of 17 November 7,2017 CONSOLIDATED GENERAL ELECTION NO PARTY PREFERENCE MEMBER,CITY COUNCIL CITY OF PALM SPRINGS 100008 W i J W O z = O X Z F V� U J O Lu z Ito in G l S F J -j O O lu Q O C 4.1 a W = F LL C 0 o cc 1> > = U K f9 7 41002 PALMSPRINGS.6 ,e 0.00 - ``0 ' ➢ 0 -:b p p 41002-Voteb Mal Re oN0 6 '11 16.87 +»mw+» " Y _. p 9 . InsGMlclent Turnout to Protect Voter Privacy 41011,-PALMSPRINGS 2343 158 8.74 - 27 bfi 73 93 18 ---' 73 41011-Vote by Mal Reporting 2343 756 32.27 114 183 431 123 84 422 41020 PALMSPRINGS 1943 226 11.63 39 63 its 69 9 131 ' 41020-Vote by Mal Reporting 1943 643 33.09 104 148 352 142 69 358 ', 41021 PALMSPRINGS 16.94 183 1023 ;37 51 88 -.29 16 - 84 I 41021- Voteby Mal RepoNng 1694 626 39.21 126 t 134 •316 180 80 345 41024.'.'PALMSPRINGS -- 2371 -281 11.85 55 109 --- 145 45 20 131 - 41024-Vote by Mall Reporting 2371 989 40.87 160 265 514 107 61 560 41031 PALM SPRINGS 2782 262 9.42 57 65 152 56 13 145 41031-Vote by Mall Reporting 2782 1077 31111 - 167 242 594 254 78 648 41036.PALMSPRINGS :2289 203 8.87 ;30 50 1121 -:�60 13 112 41036-Vote by Mall Reporting '2289 884 37.75 756 ' 756 :.601 171 64 536 41037 PALMSPRINGS �>3338 310 :--9.29 -:52 87 `:-172 `5a 26 168 41037-Vote by Mail Reporting 3338 1352 40.50 229 340 752 278 153 727 41040 PALMSPRINGS 3488 388 11.12 86 113 208 83 20 213 '. 4104D-Vote by Mail Reporting 3488 1620 46.44 284 376 936 228 12C 966 41047.PALMSPRINGS -;2450 1301 12.4 62 81 -''.184 :60 14 16 41047.r Vote by Mail RepoNng -2450 1242 50.69 227 :: 288 , 662 291 90 727 41061 PALMSPRINGS --2032 `-173 8.51 - 3 49 92 40 12 '` 9 - 41061-Vote by Mail Reporting 2032 784 38.58 126 161 437 196 bfi 43 41063 PALM SPRINGS 14 0 0.00 0 0 0 0 0 j 41063-Vote by Mail Reporting 14 6 42.86 "»••'•••• Insufficient Turnout to Protect Voter PrlYacy Prednot Totals 24650 2465 10,00 478 714 1333 553 161 1316 Vote by Mall Reporting Totals 24650 9939 40.32 1704 2291 6500 2131 845 5726 Grand Totals 24650 12404 50.32 2182 3005 6833 2684 1006 7042 Riverside - '24850 12409 •60.92 `: - •'2782 3005 6833 "2684 1006 <I704 36th Co%resslonal pislrid r 24650 12404 60.32 2182 - 3005 6833 2684 1065 -7042 20th Senatorial District 2465012404 6D.32 2782 3006 6833 2684 -'700 '7042 42nd Assembly District 24636 12398 50.32 2180 3005 6829 2683 10 7018 56th Assembly District 14 6 42.86 •""""•"» Insufficient Turnout to Protect Voter Privacy +»r"»a" -.. SL Bd.of Equalization 41h Dist 24650 12404 50.3 2782 3005 fi833 2684 1 7042 4th Supemisortal Dlstdct 24850 42404 60.3 '' '2782 3005 'fi833 2689 7008 '7092 City,of Palm Springs 24650 12404 50.32 -'2782 .3005 `'6833 2684 1006 7092 I I : i 11116/171:25 PM RIVERSIDE COUNTY Statement of Vote 14 of 17 November7,2017 CONSOLIDATED GENERAL ELECTION CITY OF PALM SPRINGS 140014 i r , C N U 42 g a �tL,l a i t m F f/a7 ) Z it 0) } Z 41002.:PALM SPRINGS 'A 0.00 -01 :01 p 'l 41002-Vote by Mall Reporting 6 -1 16.67 Inautodent TUMOUt to Protect Voter PrlVacy "•"�"""' 41011 PALMSPRINGS 2343 ''158 874 - 87 .03 -100 41 - 41011-Vote by Mall Reporting 2343 756 32.27 404 306 568 163 41020 PALMSPRINGS 1943 226 11.63 125 97 173 45 41020-Vote by Mall Reporting 1943 643 33.09 305 272 511 115 41021;PALMSPRINGS --:1594 --163 10.23 Ie) - 71 ''•.120 -.41 41021-Vote by Mall Reporting `:1594 625 3921 317 297 468 140 41024 PALM SPRINGS 2371 �281 11.85 163 112 194 77 41024-Vote by Mall Reporting 2371 96 40.87 529 415 738 203 41031 PALMSPRINGS 2782 262 9.42 145 112 187 65 41031-Vale by Mall Reporting 2782 1077 38.71 632 424 808 238 41036:PALMSPRINGS 2289 203 8.87 122 78 - 149 42 41036-Vote by MallReporfing ` 2289 '864 37.75 .503 338 670 160 41037 PALM SPRINGS 3338 -310 929 150 -157 -221 73 41037-Vote by Mail Reporting 3338 - 1352 4060 748 569 984 315 - 41040 PALM SPRINGS 3488 388 11.12 180 195 270 101 41040-Vote by Mall Reporting 348B 1620 46A4 879 706 1230 320 41047:PALM SPRINGS 24W 201 1229 '; -162 738 :'227 41D47-Voteby Mail Reporting 2450 1242 S0.69 712 501 .'988 19 41061 PALMSPRINGS1 2032 "17S 8.51 .go 78 °136 2 41061-Vote by Mail Reporting 2032 784 3658 439 331 589 168 41063 PALM SPRINGS 14 0 0.00 0 0 D 41063-Vote by Mall Reporting 14 6 42.96 ••••'•'•••• Insufficient Turnout to Protect Voter Privacy ••••••••• ' Precinct Totals 24650 2465 10.00 1315 1101 1785 67 Vote by Man Reporting Totals 24650 9939 40.3 $534 4188 7572 200 Grand Totals 24650 12404 50.32 6849 5289 0357 2581 Rverslde 24050 :12404 50.32 '- -894.9 - 5289 93,67 2581 36th Congressional District 24650 .12404 60.32 - 6449 5289 8357 2581 : 28th Sar lodel District 124660 -12404 '60.32 '.8849 6289 SWIF 2581 42nd Assembly District 24630 12398 50.32 6844 6288 1 9352 2580 56th Assembly District 14 6 42.86 •"••••••••• Insufficient Turnout to Protect Voter Privacy ••••••••` St.go.of Equalization 4th Dist 24650 12404 50.32 6849 5289 1 8357 2581 4th SupeNisorial District 24650 12409 bt1.32 :6849 6289 <79357 3587 - CityofPalmSpdnga 24650 12404 50.32 `6849 5289 -. '-9367 2581 - EXHIBIT B ORDINANCE NO. 1945 AN ORDINANCE OF THE CITY OF PALM SPRINGS, CALIFORNIA, IMPOSING A GENERAL TRANSACTIONS AND USE TAX. THE PEOPLE OF THE CITY OF PALM SPRINGS DO HEREBY ORDAIN AS FOLLOWS: SECTION 1. TITLE. This ordinance shall be known as the Palm Springs Transactions and Use Tax Ordinance. The City of Palm Springs hereinafter shall be i called "City." This ordinance shall be applicable in'the incorporated territory of the City. SECTION 2. OPERATIVE DATE. "Operative Date" means the first day of the first calendar quarter commencing more than 110 days after the adoption of this ordinance, the date of such adoption being as set forth below. SECTION 3. PURPOSE. This ordinance is adopted to achieve the following, among other purposes, and directs that the provisions hereof be interpreted in order to accomplish those purposes: A. To impose a retail transactions and use tax in accordance with the provisions of Part 1.6 (commencing with Section 7251) of Division 2 of the Revenue and Taxation Code and Section 7285.9 of Part 1.7 of Division 2 which authorizes the City to adopt this tax ordinance which shall be operative if a majority of the electors voting on the measure vote to approve the imposition of the tax at an election called for that purpose. I _ B. To adopt a retail transactions and use tax ordinance that incorporates provisions identical to those of the Sales and Use Tax Law of the State of California insofar as those provisions are not inconsistent with the requirements and limitations contained in fart 1.6 of Division 2 of the Revenue and Taxation Code. i C. To adopt a retail transactions and use tax ordinance that imposes a tax and provides a measure therefore that can be administered and collected by the State Board of Equalization in a manner that adapts itself as fully as practicable to, and requires the least possible deviation from, the existing statutory and administrative procedures followed by the State Board of Equalization in administering and collecting the California State Sales and Use Taxes. D. To adopt a retail transactions and use tax ordinance that can be administered in a manner that will be, to the greatest degree possible, consistent with the provisions of Part-1.6 of Division 2 of the Revenue and Taxation Code, minimize the cost of collecting the transactions and use taxes, and at the same time, minimize the burden of record keeping upon persons subject to taxation under the provisions of this ordinance. Ordinance No. 1945 Page 2 E. To provide transactions and use tax revenue to the City to be used to fund general governmental purposes. SECTION 4. CONTRACT WITH STATE. Prior to the operative date, the City shall contract with the State Board of Equalization to perform all functions incident to the administration and operation of this transactions and use tax ordinance; provided, that if the City shall not have contracted with the State Board of Equalization prior to the operative date, it shall nevertheless so contract and in such a case the operative date shall be the first day of the first calendar quarter following the execution of contract. q 9 such a SECTION 5. TRANSACTIONS TAX RATE. For the privilege of selling tangible personal property at retail, a tax is hereby imposed upon all retailers in the incorporated territory of the City at the rate of 0.5% of the gross receipts of any retailer from the sale of all tangible personal property sold at retail in said territory on and after the operative date of this ordinance. SECTION 6. PLACE OF SALE. For the purposes of this ordinance, all retail sales are consummated at the place of business of the retailer unless the tangible personal property sold is delivered by the retailer or his agent to an out-of-state destination or to a common carrier for delivery to an out-of-state destination. The gross receipts from such sales shall include delivery charges, when such charges are subject to the state sales and use tax, regardless of the place to which delivery is made. In the event a retailer has no permanent place of business in the State or has more than one place of business, the place or places at which the retail sales are consummated shall be determined under rules and regulations to be prescribed and adopted by the State Board of Equalization. SECTION 7. USE TAX RATE. An excise tax is hereby imposed on the storage, use or other consumption in the City of tangible personal property purchased from any retailer on and after the operative date of this ordinance for storage, use or other i g consumption in said territory at the rate of 0.5% of the sales price of the property. The sales price shall include delivery charges when such charges are subject to state sales or use tax regardless of the place to which delivery is made. SECTION 8. ADOPTION OF PROVISIONS OF STATE LAW Except as otherwise provided in this ordinance and except insofar as they are inconsistent with the provisions of Part 1.6 of Division 2 of the Revenue and Taxation Code, all of the provisions of Part 1 (commencing with Section 6001) of Division 2 of the Revenue and Taxation Code are hereby adopted and made a part of this ordinance as though fully set forth herein. Ordinance No. 1945 Page 3 SECTION 9. LIMITATIONS ON ADOPTION OF STATE LAW AND COLLECTION OF USE TAXES. In adopting the provisions of Part 1 of Division 2 of the Revenue and Taxation Code: A. Wherever the State of California is named or referred to as the taxing agency, the name of this City shall be substituted therefor. However, the substitution shall not be made when: 1. The word "State" is used as a part of the title of the State Controller, State Treasurer, State Board of Equalization, State Treasury, or the Constitution of the State of California; 2. The result of that substitution would require action to be taken by or against this City or any agency, officer, or employee thereof rather than by or against the State Board of Equalization, in performing the functions incident to the administration or operation of this Ordinance. 3. In those sections, including, but not necessarily limited to sections referring to the exterior boundaries of the State of California, where the result of the substitution would be to: a. Provide an exemption from this tax with respect to certain sales, storage, use or other consumption of tangible personal property which would not otherwise be exempt from this tax while such sales, storage, use or other consumption remain subject to tax by the State under the provisions of Part 1 of Division 2 of the Revenue and Taxation Code, or; b. Impose this tax with respect to certain sales, storage, use or other consumption of tangible personal property which would not be subject to tax by the state under the said provision of that code. 4. In Sections 6701, 6702 (except in the last sentence thereof), 67111 6715, 6737, 6797 or 6828 of the Revenue and Taxation Code. B. The word "City" shall be substituted for the word "State" in the phrase It engaged in business in this State" in Section 6203 and in the definition of that phrase in Section 6203. SECTION 10. PERMIT NOT REQUIRED. If a seller's permit has been issued to a retailer under Section 6067 of the Revenue and Taxation Code, an additional transactor's permit shall not be required by this ordinance. SECTION 11. EXEMPTIONS AND EXCLUSIONS A. There shall be excluded from the measure of the transactions tax and the use tax the amount of any sales tax or use tax imposed by the State of California or Ordinance No. 1945 Page 4 by any city, city and county, or county pursuant to the Bradley-Burns Uniform Local Sales and Use Tax Law or the amount of any state-administered transactions or use tax. B. There are exempted from the computation of the amount of transactions tax the gross receipts from: 1. Sales of tangible personal property, other than fuel or petroleum products, to operators of aircraft to be used or consumed principally outside the county in which the sale is made and directly and exclusively in the use of such aircraft as common carriers of persons or property under the authority of the laws of this State, the United States, or any foreign government. 2. Sales of property to be used outside the City which is shipped to a point outside the City, pursuant to the contract of sale, by delivery to such point by the retailer or his agent, or by delivery by the retailer to a carrier for shipment to a consignee at such point. For the purposes of this paragraph, delivery to a point outside the City shall be satisfied: a. With respect to vehicles (other than commercial vehicles) subject to registration pursuant to Chapter 1 (commencing with Section 4000) of Division 3 of the Vehicle Code, aircraft licensed in compliance with Section 21411 of the Public Utilities Code, and undocumented vessels registered under Division 3.5 (commencing with Section 9840) of the Vehicle Code by registration to an out-of-City ! address and b a declaration under penalty ofperjury, si ned b the buyer, stating that ' Y p Y 9 Y Y 9 such address is, in fact, his or her principal place of residence; and b. With respect to commercial vehicles, by registration to a place of business out-of-City and declaration under penalty of perjury, signed by the buyer, that the vehicle will be operated from that address. 3. The sale of tangible personal property if the seller is obligated to furnish the property for a fixed price pursuant to a contract entered into prior to the j operative date of this ordinance. 4. A lease of tangible personal property which is a continuing sale of such property, for any period of time for which the lessor is obligated to lease the property for an amount fixed by the lease prior to the operative date of this ordinance. 5. For the purposes of subparagraphs (3) and (4) of this section, the sale or lease of tangible personal property shall be deemed not to be obligated pursuant to a contract or lease for any period of time for which any party to the contract or lease has the unconditional right to terminate the contract or lease upon notice, whether or not . such right is exercised. t Ordinance No. 1945 Page 5 C. There are exempted from the use tax imposed by this ordinance, the storage, use or other consumption in this City of tangible personal property: 1. The gross receipts from the sale of which have been subject to a transactions tax under any state-administered transactions and use tax ordinance. 2. Other than fuel or petroleum products purchased by operators of aircraft and used or consumed by such operators directly and exclusively in the use of such aircraft as common carriers of persons or property for hire or compensation under a certificate of public convenience and necessity issued pursuant to the laws of this State, the United States, or any foreign government. This exemption is in addition to the exemptions provided in Sections 6366 and 6366.1 of the Revenue and Taxation Code of the State of California. 3. If the purchaser is obligated to purchase the property for a fixed price pursuant to a contract entered into prior to the operative date of this ordinance. 4. If the possession of, or the exercise of any right or power over, the tangible personal property arises under a lease which is a continuing purchase of such property for any period of time for which the lessee is obligated to lease the property for an amount fixed by a lease prior to the operative date of this ordinance. 5. For the purposes of subparagraphs (3) and (4) of this section, storage, use, or other consumption, or possession of, or exercise of any right or power over, tangible personal property shall be deemed not to be obligated pursuant to a contract or lease for any period of time for which any party to the contract or lease has the unconditional right to terminate the contract or lease upon notice, whether or not such right is exercised. 6. Except as provided in subparagraph (7), a retailer engaged in business in the City shall not be required to collect use tax from the purchaser of tangible personal property, unless the retailer ships or delivers the property into the City or participates within the City in. making the sale of the property, including, but not limited to, soliciting or receiving the order, either directly or indirectly, at a place of business of the retailer in the City or through any representative, agent, canvasser, solicitor, subsidiary, or person in the City under the authority of the retailer. 7. "A retailer engaged in business in the City" shall also include any retailer of any of the following: vehicles subject to registration pursuant to Chapter 1 (commencing with Section 4000) of Division 3 of the Vehicle Code, aircraft licensed in compliance with Section 21411 of the Public Utilities Code, or undocumented vessels registered under Division 3.5 (commencing with Section 9840) of the Vehicle Code. That retailer shall be required to collect use tax from any purchaser who registers or licenses the vehicle, vessel, or aircraft at an address in the City. Ordinance No. 1945 Page 6 D. Any person subject to use tax under this ordinance may credit against that tax any transactions tax or reimbursement for transactions tax paid to a district imposing, or retailer liable for a transactions tax pursuant to Part 1.6 of Division 2 of the Revenue and Taxation Code with respect to the sale to the person of the property the storage, use or other consumption of which is subject to the use tax, SECTION 12. AMENDMENTS.AII amendments subsequent to the effective date of this ordinance to Part 1 of Division 2 of the Revenue and Taxation Code relating to sales and use taxes and which are not inconsistent with Part 1.6 and Part 1.7 of Division 2 of the Revenue and Taxation Code, and all amendments to Part 1.6 and Part 1.7 of Division 2 of the Revenue and Taxation Code, shall automatically become a part of this ordinance, provided however, that no such amendment shall operate so as to affect the rate of tax imposed by this ordinance. SECTION 13. ENJOINING COLLECTION FORBIDDEN. No injunction or writ of mandate or other legal or equitable process shall issue in any suit, action or proceeding in any court against the State or the City, or against any officer of the State or the City, to prevent or enjoin the collection under this ordinance, or Part 1.6 of Division 2 of the Revenue and Taxation Code, of any tax or any amount of tax required to be collected. SECTION 14. PUBLIC OVERSIGHT. The City's annual audit is performed by an independent certified public accounting firm with extensive expertise in California municipal finance, compliance with all generally accepted accounting principles of the Governmental Accounting Standards Board, and broad experience in reviewing, analyzing and reporting as to tax revenue. The audit is reported to the City Council at a public meeting, and shall address revenue generated by this ordinance. SECTION 15. AUDIT AND REVIEW. The proceeds of the tax imposed by this ordinance, as well as the expenditure thereof, shall be audited annually by an independent certified public accounting firm. The City Council shall discuss the results of such audit at a meeting of the City Council that is open to the public. The report of such audit shall be posted on the City's website. SECTION 16. SEVERABILITY.If any provision of this ordinance or the application thereof to any person or circumstance is held invalid, the remainder of the ordinance and the application of such provision to other persons or circumstances shall not be affected thereby. SECTION 17. EFFECTIVE DATE. This ordinance relates to the levying and collecting of the City transactions and use taxes and shall take effect immediately. SECTION 18. EXECUTION. The Mayor shall sign and the City Clerk shall attest to the passage of this ordinance upon certification by the City Council of the results of the election approving this ordinance. Ordinance No. 1945 Page 7 PASSED, APPROVED AND ADOPTED B SPRINGS CITY COUNCIL THIS 6TH DAY OF DECEMBER, 201 . ROBERT MOON, MAYOR ATTEST: Av-4s, THON MEJIA M CITY CLERK Ordinance No. 1945 Page B CERTIFICATION STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE ) ss. CITY OF PALM SPRINGS ) I, ANTHONY J. MEJIA, City Clerk of the City of Palm Springs, California, do hereby certify that Ordinance No. 1945 is a full, true, and correct copy, and was adopted by a majority vote of the People of the City of Palm Springs, at the Regular Municipal Election held the 7th day of November, 2017, as appears by the official returns of said election, and the Statement of Votes Cast as declared by the City Council, Resolution No. 24333, adopted the 6th day of December, 2017. HO J. EJIA, CITY CL I EXHIBIT C ORDINANCE NO. 1946 AN ORDINANCE OF THE CITY OF PALM SPRINGS, CALIFORNIA, IMPOSING A TAX ON CANNABIS BUSINESS ACTIVITY. THE PEOPLE OF THE CITY OF PALM SPRINGS DO ORDAIN AS FOLLOWS: SECTION 1.Code Amendment. The Palm Springs Municipal Code is hereby amended to adopt chapter 3.42 regarding Cannabis taxation. Chapter 3.42 CANNABIS 3.42.010 Puroose. The purpose of this ordinance is to impose a gross receipts tax not to exceed $0.15 per $1.00 of gross receipts, on any cannabis business conducted in the City of Palm Springs, as "cannabis business" is defined in section 3.42.020 of this code, with the exception of cannabis cultivation businesses, which are subject to the tax defined in Section 3.42.040, whether or not such cannabis business has a permit under chapter 5.35, 5.45 or 5.55 of this code. 3.42.020 Definitions. The following definitions shall apply to the construction of this chapter unless the context is such that it is plain a different meaning is intended: A. "Cannabis" or "marijuana" means all parts of the plant Cannabis sativa Linnaeus, Cannabis indica, or Cannabis ruderalis, or any other strain or varietal of the genus Cannabis that may exist or hereafter be discovered or developed that has psychoactive or medicinal properties, whether growing or not, including the seeds of such plants. "Cannabis" also means marijuana as defined by section 11018 of the Health and Safety Code and as defined by other state law. B. "Cannabis business" means the activity of any natural or legal person, business, or collective in the City relating to cannabis, including but not limited to cultivation (including nurseries), transportation, distribution, manufacture, compounding, conversion, processing, preparation, testing, storage, packaging, delivery and sales (wholesale and/or retail sales) of cannabis, cannabis products, or any accessories for the use of cannabis or cannabis products, whether or not carried on for gain or profit, whether or not for medical or adult-use, and whether or not such business is licensed by the state. A cannabis business does not include any business the only relationship of which to cannabis or cannabis products is the production or sale of cannabis accessories. Ordinance No. 1946 Page 2 C. "Cannabis cultivation area" means the total aggregate area(s) of cannabis cultivation on one or more parcels in the City by a cannabis business as measured around the outermost perimeter of each separate and discrete area of cannabis cultivation at the dripline of the canopy expected at maturity and includes, but is not limited to, space between plants within a cultivation area, the exterior dimensions of garden beds, garden plots, hoop houses, green houses, and each room or area where cannabis plants are grown, as determined by the city manager. D. "Cannabis product" means any product containing cannabis or its derivatives, including, but not limited to, flowers, buds, oils, tinctures, concentrates, extractions, edibles and those products described in section 11018.1 of the Health and Safety Code. E. "Canopy" means the designated area(s) at a licensed premises that will contain mature plants at any time. if mature plants are cultivated using a shelving system, the surface area of each level shall be included when calculating canopy area. Canopy area shall be expressed in square feet and measured using clearly identifiable boundaries of all areas that will contain mature plants at any time, including the entire area with those boundaries. Canopy may be noncontiguous, but each noncontiguous area shall be defined by an identifiable boundary such as an interior wall or by 10 feet or more feet of open space. F. "City manager' has the meaning provided by section 1.06.020 of this code. G. "Commercial cannabis cultivation" means cultivation conducted by, for, or as part of a cannabis business. Commercial cannabis cultivation does not include personal medical cannabis cultivation, or cultivation for personal adult-use as authorized under the "California Control, Regulate and Tax Adult Use of Marijuana Initiative" approved by the state's voters on November 8, 2016, for which the individual receives no compensation whatsoever. H. "Cultivation" means any activity involving the planting, growing, harvesting, drying, curing, grading, or trimming of cannabis. 1. "Cultivator" means any person engaged in cultivation. J. "Delivery" means the transfer for any form of compensation of cannabis or cannabis products to a customer or caregiver at a location that is not a dispensary. K. "Dispensary" means a place at which cannabis, cannabis products, or accessories for the use of cannabis or cannabis products are offered, either individually or in any combination, for retail sale, including an establishment that engages in delivery. L. "Distributor" means a person engaged in procuring cannabis and/or procuring cannabis products for sale to a dispensary or other point of retail sale. "Distribution" Ordinance No. 1946 Page 3 means engaging in that conduct and a "distribution facility" is any real estate, whether or not improved, used in such conduct. M. Except as otherwise specifically provided in this code or by regulation authorized by this code, "gross receipts" means the total amount actually received or receivable from all sales; the total amount or compensation actually received or receivable for the performance of any act or service, of whatever nature, for which a charge is made or credit allowed, whether or not such act or service is done as a part of or in connection with the sale of materials, goods, wares or merchandise; discounts, rents, royalties, fees, commissions, dividends, and gains realized from trading in stocks or bonds, however designated. Included in °gross receipts" shall be all receipts, cash, credits and property of any kind or nature, without any deduction or setoff therefrom on account of the cost of the property sold, the cost of materials used, labor or service costs, interest paid or payable, or losses or other expenses whatsoever. N., "Manufacturer" means a person who engages in the production, preparation, propagation, or compounding of cannabis or cannabis products either directly or indirectly or by extraction methods, or independently by means of chemical synthesis, or by a combination of extraction and chemical synthesis. O. "Nursery" means a person, facility or activity that transfers for any form of consideration cannabis clones, immature plants, and/or seeds for planting, propagation, and/or cultivation of cannabis. 3.42.030 Gross Receipts Tax A. There is hereby imposed on every cannabis business in the City an annual cannabis industry tax at a rate established from time to time by resolution of the City Council that shall not exceed fifteen percent (15%) of gross receipts. The sole exception to this tax upon gross receipts shall be cannabis cultivation businesses, which are subject to the tax defined in Section 3.42.040. The tax imposed under this section shall be due and payable as provided in section 3.42.100. As noted in section 3,42.040, cultivators shall pay a cultivation tax in lieu of this gross receipts tax. B. The City Council may by resolution, in its discretion, implement a tax rate lower than the maximum rate established in subsection (A) of this section for all persons engaged in a cannabis business in the City, or establish differing tax rates for different categories of cannabis business, including for medical versus adult-use. The City Council may, by resolution, also decrease or increase any such tax rate from time to time, provided that the tax rate shall not, at any time, exceed the maximum tax rate established in subsection (A) of this section. An affirmative vote of at least four (4) members of the City Council is required for any increase in tax payable pursuant to this section 3.42.030. C. Cannabis businesses subject to the tax imposed by subsections (A) and (B) of this section shall also register and pay the registration fee described in section Ordinance No. 1946 Page 4 3.42.045, but shall be exempt from paying the general business tax imposed by Title 3, Division 11 of the Palm Springs Municipal Code. Any cannabis business not subject to the tax imposed by subsections (A) and (B) of this section is subject to the general business tax imposed by Title 3, Division II of the Palm Springs Municipal Code except as otherwise provided by this Code or other applicable law. 3.42.040 Cultivation Tax, A. Any cannabis business engaged in the cultivation of cannabis shall pay (i) the cultivation tax imposed by this section instead of the tax imposed by section 3.42.030 on its cultivation activity and (V) the tax imposed by section 3.42.030 on its other cannabis business activity. The activity of nurseries as defined in section 3.42.020 is subject to the tax imposed by section 3.42.030 rather the tax imposed by this section. B. There is hereby imposed on every cannabis business engaged in commercial cannabis cultivation in the City, an annual tax in an amount established from time to time by resolution of the City Council which does not exceed either $10.00 per square foot of cannabis cultivation area or fraction thereof. The maximum square foot tax shall be adjusted annually (and rounded to the nearest cent) each January 15t based on the year-over-year percentage change in Bureau of Labor Statistics Los Angeles-Riverside- Orange County Consumer Price Index — All Urban Consumers (CPI-U) October to October comparison, or if such index is discontinued, a comparable or successor consumer price index designated by the City Council. The tax shall be due and payable in installments as provided in section 8.42.100. The tax authorized under this section shall not be implemented unless and until the city council acts by resolution to do so. C. The city council may by resolution, in its discretion, implement a tax rate lower than the maximum rates set forth in subsection (B) of this section for all businesses engaged in commercial cannabis cultivation in the City or establish tax rates for categories of commercial cannabis cultivation. For example, and without limitation, the City Council may set different tax rates for cannabis cultivation for medical or adult-use, or for indoor rather than outdoor or mixed-light cultivation, The City Council may, by resolution, also decrease or increase any such tax rate from time to time, provided that the tax rate shall not, at any time, exceed the maximum established in subsection (A) of this section. An affirmative vote of at least four (4) members of the City Council is required for any increase in tax payable pursuant to this section 3.42.040. D. Cannabis businesses engaged in cultivation and subject to the tax imposed by subsections (A) and (B) of this section and liable for the tax imposed by this chapter shall also register and pay the registration fee described in section 3.42.045, but shall be exempt from the general business tax required under Title 3, Division 11 of the Palm Springs Municipal Code. Any business not subject to the tax imposed by this section 3.42.040 is subject to the general business tax required under Title 3, Division II of the Palm Springs Municipal Code except as otherwise provided by this code or other applicable law. Ordinance No. 1946 Page 5 3.42.045 Registration of Cannabis Business. A. All persons engaging in a cannabis business, whether an existing, newly- established or acquired business, shall register with the city manager's office by the later of (i) 30 days of commencing operation or (#) by January 1, 2018 and shall annually renew such registration no more than a calendar year after the date of the most recent registration. In registering, such persons shall furnish to the City Manager a sworn statement, upon a form provided by the City Manager, setting forth the following information: I. The name of the business; 2. The names and addresses of each owner; 3. The nature or kind of all business activity to be conducted; 4. The place or places where such business is to be carried on; and S. Any further information which the City Manager may require. B. Such persons shall pay an annual registration fee in an amount established from time to time by resolution of the city council to recover the city's costs to implement the taxes imposed under this chapter, the registration requirement of this section, and the other provisions of this chapter. As a regulatory fee, such fee shall be limited to the City's reasonable regulatory costs. C. The registration and registration fee shall be collected and enforced in accordance with Title 3, Division II of this code ("Business Tax"). D. The tax registration certificate required and the general business license required under Title 3, Division 11 of the Palm Springs Municipal Code may constitute a single document. 3.42.050 Payment Obligation. All taxpayers subject to a tax under this this chapter shall pay that tax regardless of any rebate, exemption, incentive, or other reduction set forth elsewhere in this code, except as required by state or federal Law. Failure to pay such a tax shall be subject to penalties, interest charges, and assessments as provided in this chapter and the City may use any or all other code enforcement remedies available at law or in equity. No provision of this code shall be interpreted to reduce a tax rate established under this chapter or otherwise reduce the taxes paid hereunder unless the provision specifically expresses that reduction. 3.42.060 City Council Authorization to Adiust Rates The city council may impose a tax authorized by this chapter at a lower rate and may establish exemptions, incentives, or other reductions, and penalties and. interest charges or assessments for failure to pay the tax when due, as otherwise allowed by Ordinance No. 1946 Page 6 the city charter and California law. No action by the city council under this section shall prevent it from later increasing the tax or removing any exemption, incentive, or reduction, and restoring the maximum tax authorized by this chapter provided only that . the maximum taxes stated in section 3.42.030, subsection (A) and 3.42.040, subsection (B) may not be increased without voter approval. 3.42.070 Tax Payment Does Not Authorize Activity_ The payment of a tax imposed under this chapter shall not be construed to authorize the conduct or continuance of any illegal business or of a legal business in an illegal manner. Nothing in this chapter authorizes or implies the lawfulness of any activity \ connected with the distribution or possession of cannabis unless otherwise authorized and allowed in strict and full conformance with this code, including without limitation chapters 5.35, 5.45 and 5.55. Nothing in this chapter shall be applied or construed as authorizing the sale of cannabis. 3.42.080 Cannabis Tax Is Not a Sales Tax The taxes provided for under this chapter are excises on the privilege of doing business in the City and legally incident on those engaged in such business. It is not a sales or use tax and shall not be calculated or assessed as such. Nevertheless, at the option of the taxpayer, the tax may be separately identified on invoices, receipts and other evidences of transactions. 3.42.090 Amendments and Administration A. Voters approved this chapter. Any amendment to this chapter to increase the tax above the maximum rates provided requires further voter approval. The voters authorize the city council to set the tax at or below that maximum or otherwise to amend, modify, change, or revise any provision of this chapter as the city council deems in the best interest of the city. B. The city manager, in consultation with the city attorney, may promulgate rules, regulations, and procedures to implement and administer this chapter to ensure the efficient and timely collection of the taxes and fee imposed by this chapter, including without limitation, formulation and implementation of penalties and interest to be assessed for failure to pay the taxes as provided. Notice of such regulations shall be given as required for ordinances of the city council and such regulations shall be immediately effective when such notice is given unless a different effective date is provided by a regulation. C. The city manager shall annually audit the cannabis taxes imposed by this chapter to verify that tax revenues have been properly collected and expended in accordance with the law. Ordinance No. 1946 Page 7 D. Pursuant to California Constitution; article XIII B, the appropriation limit for the City is increased to the maximum extent over the maximum period of time allowed under law consistent with the revenues generated by the taxes and fee imposed by this chapter. 3.42.100 Returns and Remittances. The Tax shall be due and payable as follows: A. Each cannabis business owing tax shall provide a tax return to the city manager on or before the last business day of each month stating the tax owed and the basis of its calculation for the preceding month. The taxpayer shall remit the tax owed to the city manager when the return is due whether or not a return is filed as required. B. All tax returns shall be completed on forms provided by the city manager. C. Tax returns and payments for all outstanding taxes, fees, penalties and interest owed the city are immediately due upon cessation of business for any reason. D. Whenever any payment, statement, report, request or other communication is received by the city manager after the time prescribed by this section for its receipt, but is in an envelope postmarked on or before the date prescribed by this section for its receipt, the city manager shall regard such payment, statement, report, request, or other communication as timely. If the due date falls on Friday, Saturday, Sunday, or a holiday, the due date shall be the last earlier business day on which City Hall is open to the public. E. Unless otherwise specifically provided by this chapter, the taxes imposed by this chapter shall be deemed delinquent if not paid on or before the due date specified in subsection A of this section. F. The city manager need not send a delinquency or other notice or bill to any person subject to a tax or fee imposed by this chapter and failure to send such notice or bill shall not affect the validity of any tax, fee, interest or penalty due under this chapter. 3.42.110 Failure to Pay Timely. i A. Any person who fails or refuses to pay any tax or fee imposed by this chapter when due shall pay penalties and interest as follows: 1. A penalty equal to 25 percent of the tax or fee; and 2. An additional penalty equal to 25 percent of the amount of the tax or fee if unpaid for a more than a month beyond the due date; and Ordinance No. 1946 Page 8 3. Unpaid tax, fee, penalties shall bear 1 percent interest per month from the date due until paid. B. If a check is submitted in payment of a tax or fee and is returned unpaid by the bank upon which drawn, and the check is not redeemed before the due date, the taxpayer will be liable for the tax or fee due plus penalties and interest as provided for in this section plus any amount allowed understate law for the returned check. C. The tax due shall be that amount due and payable from the later of (i) the effective date of the taxes under this chapter as determined by resolution of the city council or (H) the first date on which the cannabis business first operated in the city. D. The city manager may waive some or all of the penalties imposed by this section as to any person if: 1. The person provides evidence satisfactory to the city manager that failure to pay timely was due to circumstances beyond the control of the person and occurred notwithstanding the exercise of ordinary care and the absence of willful neglect, and the person paid the delinquent tax or fee and accrued interest owed the city upon applying for a waiver. 2. A waiver authorized by this subsection shall not apply to tax, fee or interest and may be granted only once during any 24-month period. 3.42.120 Refunds. A. No refund shall be made of any tax collected pursuant to this chapter, except as provided in this section. B. No refund of any tax collected pursuant to this chapter shall be made because of the discontinuation, dissolution, or other termination 'of a cannabis business. C. Any person entitled to a refund of sums paid under this chapter may elect to have such refund applied as a credit against future obligations under this chapter. D. Whenever any tax, fee, penalty, or interest under this chapter has been overpaid, paid more than once, or has been erroneously or illegally collected or received by the city, such amount shall be refunded to the person who paid the tax upon a timely written claim for refund filed with the city manager. E. The city manager may examine and audit all the books and business records of the claimant to determine eligibility to the claimed refund. No claim for refund shall be allowed if the claimant refuses to allow such examination of the claimant's books and business records. Ordinance No. 1946 Page 9 F. A sum erroneously paid under this chapter due to an error of the city shall be refunded to the claimant in full upon a timely claim. If an error is attributable to the claimant, the city may retain an amount established by resolution of the city council from time to time in an amount sufficient to recover the city's cost to process the claim and refund the balance. G. The city manager shall initiate a refund of any sum overpaid or erroneously collected under this chapter whenever the overpayment or erroneous collection is disclosed by a City audit for the period of time unprotected by the duty to file a timely claim under the Government Claims Act. 3.42.125 Enforcement. A. The city manager shall enforce this chapter. B. The city manager may audit and examine all business locations, books and records of cannabis businesses, including both state and federal income tax returns, California sales tax returns, or other evidence documenting the gross receipts of a cannabis business to ascertain any tax due under this chapter and to verify any returns or other information any person submits to the city under this chapter. If a cannabis business, after written demand by the city manager, refuses to make available for audit, examination or verification such locations, books, and records as the city manager requests, the city manager may, after full consideration of all such information as is available make an assessment of tax or fee due and demand payment from the tax- or fee-payer, together with any penalties and interest due for late payment. C. The conviction and punishment of any person for failure to pay a sum required under this chapter shall not excuse or exempt such person from any civil action for the debt. No civil action shall prevent a criminal prosecution for any violation of this chapter or of any state law requiring the payment of all taxes. No election of remedies shall apply to the enforcement of this chapter or any other-provision of this code and the city may pursue one or more remedies in its discretion provided only that no double recovery shall be permitted. D. Any person violating any of the provision of this chapter or any regulation or rule adopted pursuant to it, or knowingly or intentionally misrepresenting any material fact to the city in procuring a certificate or document from the city under this chapter, or under chapter 5.35, 5.45, or 5.55, shall be deemed guilty of a misdemeanor unless the city attorney, in his or her discretion, elects to prosecute it as an infraction. E. In addition to the penalty imposed for a failure to timely pay any tax or fee imposed by this chapter imposed pursuant to Section 3.42.110, the City Attorney shall have the discretion to issue an administrative citation with respect to said failure, and impose an administrative fine in the amount of$5,000 for each month that any payment of tax is overdue. Each cannabis business subject to any such administrative citation Ordinance No. 1946 Page 10 and fine shall have the opportunity to appeal same pursuant to Chapter 2.50 of this Code. F. In the event that any appeal as to an administrative citation and fine pursuant to this Section 3.42.125, or any other action in relation thereto takes place, the City shall be entitled to recover its attorneys' fees and administrative costs incurred unless the appeal in question is granted, or the cannabis business initiating any other action is the prevailing party. 3.42.130 Consistency with Business Tax Rules. The People of the City of Palm Springs intend this chapter to be enforced consistently with Title 3, Division II of this code and any rule or regulation promulgated under that division except as expressly provided to the contrary in this chapter. 3.42.135 Successor And Assignee Responsibility, A. If any person, while liable for any amount under this chapter, sells, assigns or otherwise transfers half or more of a taxed cannabis business, whether voluntarily or involuntarily; the person's successor, assignee or other transferee, or other person or entity obtaining ownership or control of the business ("transferee") shall pay that amount when due. A transferee shall notify the city manager of a transfer 30 days before the transfer date; or if the agreement to sell, transfer, or otherwise dispose of the business is made less than 30 days before the date of transfer, on the first day City Hall is open for business after the transfer. B. A transferee shall be deemed to have satisfied an unpaid liability if the transferee complies with the requirements of California Revenue and Taxation Code Section 7283.5 and this section by.withholding from the purchase price, for the benefit of the city, an amount sufficient to cover the liability, or by otherwise paying the liability and obtaining from the city manager a "Tax Clearance Certificate" showing that all outstanding liability has been paid through the date of transfer. C. Within 90 days of receiving a written request from a Transferee, the city manager may issue a "Tax Clearance Certificate" stating either the amount due as to the business under this chapter, or stating that there is no liability due for the business through a stated date. The city manager may also request financial records from the transferor to audit the amount due under this chapter. The city manager shall issue a tax clearance certificate within 30 days of completing the audit, stating any amount owed, unless the city manager determines the records provided for audit are insufficient to determine whether taxes, fees, penalties and/or interest are due and in what amounts. If so, the city manager may rely on available information to estimate any amount due and shall issue a tax clearance certificate stating that amount. A written application for an appeal hearing on the amount assessed on a tax clearance certificate must be made within 10 days after the city manager serves or mails the certificate. The appeal Ordinance No. 1946 Page 11 provision of section 3.68.010 of this code shall apply. If a timely application for a hearing is not made, the tax clearance certificate shall serve as conclusive evidence of the liability under this chapter associated with the business through the date stated on the certificate. 3.42.140 Debts: Deficiencies:Assessments. A. The amount of any tax, fee, penalties, and interest imposed by this chapter shall be deemed a debt to the city and any person operating a cannabis business without first having procured a business tax license as provided in Division II of Title 3 of this code shall be liable in an action in the name of the city in any court of competent jurisdiction for the amount due. B. If no return or statement is timely filed, or if the city manager is not satisfied that any return or other statement filed under this chapter is correct, or that the amount due is correctly computed, the city manager may determine that amount and make a deficiency determination upon available information. The city manage may make one or more deficiency determinations for a period or periods. When a person discontinues engaging in a business, the city manager may make a deficiency determination may at any time within three years thereafter as to any liability arising from engaging in such business whether or not a deficiency determination is issued before the date the tax would otherwise be due. Whenever a deficiency determination is made, a notice shall be given to the person concerned as are notices of assessment under subsections C, D, and E of this section. C. Under any of the following circumstances, the city manager may make and give notice of an assessment of taxes, fees, penalties and interest owed under this chapter: 1. If the person has not filed any statement or return required by this chapter; 2. If the person has not paid any tax, fee, penalty or interest due under this Ordinance; 3. If the person has not, after demand by the city manager, filed a corrected statement or return, or adequate substantiation of the information contained in a statement or return previously filed, or paid any additional amount due under this chapter; 4. If the city manager determines nonpayment of any amount due under this chapter or Division II of Title 3 is due to fraud, a penalty of 25 percent of the amount of otherwise due shall be added thereto in addition to penalties and interest otherwise stated in this chapter. Ordinance No. 1946 Page 12 5. The notice of assessment shall separately set forth any amount the city manager knows or estimates to be due under this chapter, including any penalties or interest accrued to the date of the notice. D. A notice of assessment shall be served upon the tax- or fee-payer either by personal service or by a deposit in the United States mail, postage prepaid, addressed to the address appearing on the business tax certificate issued under Division II of Title 3, or such other address as he or she may provide the city manager in writing for notices under this chapter or that Division II; or, should the person have no business tax certificate issued and no address provided to the city manager for such purpose, then to such person's last known address. Service by mail is complete upon deposit in the United States mail as provided in this paragraph. E. Within 10 days after service of a notice of assessment, the tax- or fee-payer may apply in writing to the City Manager for a hearing on the assessment. If no timely application for a hearing is made, the amount assessed shall be final and conclusive. Within 30 days of the receipt of an application for hearing, the city manager shall cause the matter to be set for hearing before a hearing officer pursuant to section 1.06.050 of this code. The city manager shall give notice of such hearing to the person requesting it not later than five days before the hearing. At such hearing, the applicant may appear and offer evidence why the assessment should not be confirmed. After such hearing, the hearing officer shall determine the amount due under this chapter and shall give written notice to the person as prescribed in this chapter for giving notice of assessment. That decision is final as to the city, but either the city or the applicant may seek judicial review as provided by California Code of Civil Procedure section 1094.5. SECTION 2. AMENDMENT. This Ordinance may be repealed or amended by the City Council without a vote of the People except as follows: as required by Article XIII C of the California Constitution, any amendment that increases the amount or rate of tax beyond the levels authorized by this Ordinance may not take effect unless approved by a vote of the People. The City Council may impose the tax in any amount or rate which does not exceed the rate approved by the voters of the City. SECTION 3. SEVERABILITY. If any provision of this Ordinance or the application thereof to any person or circumstance is held invalid, the remainder of the Ordinance and the application of such provision to other persons or circumstances shall not be affected thereby. The People hereby declare that they would have adopted this Ordinance and each portion thereof regardless of the fact that an invalid portion or portions may have been present in the Ordinance. SECTION 4. CEQA. This measure to be submitted to the voters adopts a general tax to fund any legitimate purpose of the City. As such, under CEQA Guidelines section 15378(b)(4), the tax is not a project within the meaning of CEQA because it creates a government funding mechanism that does not involve any commitment to any specific project that may result in a potentially significant impact on the environment. Therefore, under CEQA Guidelines section 15060, review under CEQA is not required. Ordinance No. 1W Page 13 SECTION 5. EFFECTIVE DATE. This Ordinance relates to the levying and collecting of the City's cannabis tax and shall not take effect until ten days after the certification of its approval by the majority of the voters voting at the general municipal election to be held on November 7, 2017 pursuant to Elections Code section 9217. SECTION 6. SUSPENSION OF CANNABIS AND MARIJUANA TAX. While the taxes imposed by this Ordinance are in effect, the tax imposed by Chapter 3.35 of the Palm Springs Municipal Code shall be suspended. Should either of the taxes in this Ordinance be repealed, suspended, invalidated, ruled unenforceable or otherwise rendered ineffective, the tax imposed by Chapter 3.35 of the Palm Springs Municipal Code shall return to force without further action by the voters of the City. SECTION 7. CERTIFICATION; PUBLICATION. Upon approval by the voters, the City Clerk shall certify to the passage and adoption of this Ordinance and shall cause it to be published according to law. ADOPTED AND APPROVED THIS 6T" D EMBER, 2017. ROBERT MOON, MAYOR ATTEST: AN ONY EJIA, CLER j„ Ordinance No. 1946 Page 14 CERTIFICATION STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE ) ss. CITY OF PALM SPRINGS ) 1, ANTHONY J. MEJIA, City Clerk of the City of Palm Springs, California, do hereby certify that Ordinance No. 1946 is a full, true, and correct copy, and was adopted by a majority vote of the People of the City of Palm Springs, at the Regular Municipal Election held the Ph day of November, 2017, as appears by the official returns of said election, and the Statement of Votes Cast as declared by the City Council, Resolution No. 24333, adopted the 6th day of December, 2017. < l HONY . CITY CLERK