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FOlt CITY COUNCIL STAFF REPORT
DATE: DECEMBER 6, 2017 SPECIAL ITEM
SUBJECT: PROPOSED RESOLUTION DECLARING THE RESULTS OF THE
NOVEMBER 7, 2017, REGULAR MUNICIPAL ELECTION.
FROM: David H. Ready, City Manager
BY: Kathleen D. Hart, Interim City Clerk
SUMMARY
Pursuant to California Elections Code the City Council shall adopt a resolution declaring
the results of the November 7, 2017, Regular Municipal Election.
RECOMMENDATION:
Adopt Resolution No. , "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."
STAFF ANALYSIS:
At the direction of the Interim City Clerk, the Riverside County Registrar of Voters
canvassed the returns of the November 7, 2017, Regular Municipal Election, pursuant to
City Council Resolution No. 24249. The Registrar of Voters has provided a Certification
to the Results and Canvass of the Election Returns, pursuant to California Elections
Code § 10262.
Pursuant to California Elections Code § 10263 the City Council shall adopt a Resolution
declaring the results of the election.
The proposed Resolution declares Lisa Middleton and Christy Gilbert Holstege elected to
the office of Member of the Palm Springs City Council for the term ending December,
2021.
Additionally, the proposed Resolution deems Ordinance No. 1945, "AN ORDINANCE OF
THE CITY OF PALM SPRINGS, CALIFORNIA, IMPOSING A GENERAL
TRANSACTIONS AND USE TAX;" (Measure "D") adopted and ratified.
Lastly, the proposed Resolution deems Ordinance No. 1946, "AN ORDINANCE OF THE
CITY OF PALM SPRINGS, CALIFORNIA, IMPOSING A TAX ON CANNABIS
BUSINESS ACTIVITY;" (Measure "E") adopted and ratified.
5�e�ia1
nEM NO. 13
City Council Staff Report
December 6, 2017-- Page 2
Election Results
Kathleen D. Hart, MMC David H. Ready, Esq
Interim City Clerk City Manager
Attachments:
Proposed Resolution
Certification of Election Results
Ordinances 1945 and 1946
02
RESOLUTION NO.
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,
03
Resolution No.
Page 3
SECTION 7. The City Council determines and declares that Lisa Middleton and
Christopher "Chris" Mills were elected to the office of Member of the Palm Springs City
Council for the term ending December, 2017.
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;"
04
Resolution No.
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, 2017 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 % 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.
05
Resolution No.
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, Esq., Ph.D.
City Manager
ATTEST:
Kathleen D. Hart, MMC
Interim City Clerk
CERTIFICATION
STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) ss.
CITY OF PALM SPRINGS )
I, KATHLEEN D. HART, Interim City Clerk of the City of Palm Springs, hereby
certify that Resolution No. 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:
NOES:
ABSENT:
ABSTAIN:
Kathleen D. Hart, MMC
Interim City Clerk
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Exhibit A
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REBECCA SPENCER ART T/NOCO
Registrar of Voters *+r v ,+"' Assistant Registrar of Voters
REGISTRAR OF VOTERS
COUNTY OF RIVERSIDE
CERTIFICATE OF REGISTRAR OF VOTERS
TO THE RESULTS OF THE CANVASS OF ELECTION RETURNS
State of California )
) ss.
County of Riverside )
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
Consolidated General Election in the
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 16th day of November 2017.
REBECCA SPENCER
Registrar of Voters
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Chief Deputy Registrar of Voters
2724 Gateway Drive I Riverside, CA 92507-0918 w 07
(951)486-7200 1 TTY(951)697-8966 1 FAX(951)486-7272
www.voteinfo.net
11/161171:25 PM RIVERSIDE COUNTY Statement of Vote 7 of 17
November7,2017 CONSOLIDATED GENERAL ELECTION
NO PARTY PREFERENCE MEMBER,CITY COUNCIL CITY OF PALM SPRINGS
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41002 PALMSPRINGS e6 0 0.00 b 0 ` 0 ' 01 p
41002-Vole by Mail Reporting 6 1 16.67 ...... Insufficisrlt Turnout to Protect Voter Privacy
41011 PALMSPRINGS 2343 158 0.74 27 46 73 43 t8 73
41011-Vote by Mall Reporting 2343 756 32.27 114 ta3 431 123 64 422
41020 PALM SPRINGS 1943 226 11.63 39 63 Its 59 9 131
41020-Vole by Mail Reporting 1943 643 33.09 104 148 352 142 69 358
41021 PALM SPRINGS 1594 ` 163 10.23 37 51 so 29 16 84
41021-Vote by Mall Reporting 1594 626 3921 125 134 316 160 60 - 34
41024 PALM SPRINGS 2371 281 11.66 56 109 145 45 20 131
41024-Vote by Mall Reporting 2371 969 40.87 168 265 514 187 61 56
41031 PALM SPRINGS 2782 262 9.42 57 65 152 56 13 14
41031-Vote by Mail Reporting 2782 1077 38.71 167 242 594 254 78 648
41036 PALMSPRINGS 2289 - 203 8.07 30 '60 121 60 13 112
41036 Vote by Mall Reporting 2289 864 37.75 156 156 601 171 64 636
41037 PALMSPRINGS 3338 310 -9.29 ,52 87 172 5e '26 166
41037-Vole by Mail Reporting 3338 1352 40.50 229 340 752 278 153 727
41040 PALM SPRINGS 3488 388 11.12 86 113 208 83 20 213
41040-Vote by Mail Reporting 3488 1620 46.4, 284 376 B36 328 120 966
41047 PALM SPRINGS 2460 301 :1229 62 al 164 s0 14 'I',466
41047-Vote by Mall Reporting. 2450 1242 60,61 227 266 - ::062 :291 90 '- -727
41001 PALMSPRINGS 2032 173 8.51 3 49 '-92 40 1 95
41081-Vote by Mail Reporting 2032 784 38.54 12 1at 437 140 fi 432
41063 PALM SPRINGS 14 0 0.00 0 0 0 0 0 0
41063-Vole by Mail Reporting 14 6 42.86 """' Insufficient Turnout to Protect Voter Privacy "••"""
Prepincl Totals 24650 2465 10.0 478 714 1333 553 101 131
Vote by Mall Re porting Totals 24650 9939 40.32 1704 2291 5500 2131 645 5726
Grand Totals 24850 12404 50.32 2182 3005 6833 2684 1006 7042
Riverside 24650 12404 50.32 ::2182 3005 '6833 .2684 1006 7042
38th Congressional District .24850 12404 50.32 -2782 3005 6833 -2664 1006 7042
281h Senatorial District 24650 12404 50.32 2182 3005 s833 2684 1008 7042
42nd Assembly District 24638 12398 50.32 2180 3005 6829 2683 1006 7038
Seth Assembly District 14 6 42.86 •"•"•' Insufficient Turnout to Protect Voter Privacy "••"'
St.Bd.of Equalization 4th Dist 24660 12404 60.32 2182 3005 6833 2684 1006 7042
4th SupeMsotlal District 24 '.12404 '60.32 2182 9005 6833 2684 1a0a 7042 -
City of Palm Sprigs 24 12404 50.32 278 3005 BB33 2684 100 7042
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111151171:25 PM RIVERSIDE COUNTY Statement of Vote 14 of 17
November 7,2017 CONSOLIDATED GENERAL ELECTION
CITY OF PALM SPRINGS
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41002 PALMSPRINGS 6 D 0.0 01 01 1101 0
41002-Vote b Mail Reporting 6 '1 16.67 "•"••'••• •*••��Y p 9 Insufficient Turnout to Protect Voter Privacy
41011 PALM SPRINGS 2343 168 6.74 87 63 108 41
41011-Vote by Mail Reporting 2343 766 32.27 404 336 568 163
41020 PALM SPRINGS 1943 226 11.63 125 97 173 45
41020-Vote by Mall Reporting 1943 643 33.09 365 272 611 115
41021 PALM SPRINGS r 1594 163 '10.23 91 71 120 41
41021-Vote by Mall Reporting 1594 625 39.21 317 297 488 ` 140
41024 PALM SPRINGS 7 2371 231 11,88 163 112 194 77
41024-Vote by Mail Reporting 2371 969 40.87 529 415 738 203
41031 PALMSPRINGS 2782 262 9.42 146 112 187 6
41031-Vote by Mail Reporting 2782 1077 38.71 632 424 806 23
41036 PALM SPRINGS 2289 203 -8,87 122 76 149 42
41036-Vote 4 Mall Reporting 2289 664 37.T5 503 ' .336 076 156
41037 PALMSPRINGS 3338 310 -9.29 ISO 157 221 73
41037-Vote by Mall Reporting 3338 1352 40.50 748 569 984 315
41040 PALMSPRINGS 3488 388 11.12 180 195 270 101
41040-Vote by Mail Reporting 3488 1620 40A4 879 705 1238 $20
41047 PALMSPRINGS :245C 301 12.29 162 138 227 _so
41047-Vote by Mall Reporting. 245C 1242 50.69 712 501 988 192
41061 PALMSPRINGS 2032 17 8.51 9D 78 -196 27
41061-Vote by Mail Reporting 2032 784 30.68 439 331 589 166
41063 PALM SPRINGS 14 0 0.00 0 0 0 0
41053-Vote by Mall Reporting 14 6 4226 "••'•' Insufficient Turnout tc Protect Voter Privacy '••"'"'
Precinct Tolals 24050 2465 10.00 1315 1101 1765 '572
Vote by Mall Reporting Totals 24650 993E 4032 5534 4168 7572 2009
Grand Totals 24650 124D4 50.32 6849 5289 W57 2561
Riverside 24W 12404 60.32 6849 5289 9357 2661
36m,Congressional District - 24650 12404 50.32 8849 5289 93s7 2581
281N Senatorial Dlstrid 24660 12404 50.32 :6849 5289 9357 26al
42nd Assembly District 24636 12398 50.32 6844 5288 9352 2580
Stith Assembly District 14 6 42.88 •""'••"^•^ Insuf cierN Turnout to Protect Voter Privacy "'"•""*"
St.Bat,of Equalization 41h Dial 24850 12404 50.3 684E 5289 9357 2581
41h Superviaorial Di8bid 24650 12404 So '684 52 SW - 2581
City of Palm Springs 246% 12404 50.3 -684 5289 9357 '2581
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REBECCA SPENCER t__ ART T/NOCO
Registrar of Voters Assistant Registrar of Voters
4j4 r 9, is
REGISTRAR OF VOTERS
COUNTY OF RIVERSIDE
November 16, 2017
CONSOLIDATED GENERAL ELECTION
NOVEMBER 7, 2017
OFFICIAL CERTIFIED TALLY OF QUALIFIED WRITE-IN CANDIDATES
CITY COUNG L,CITY OF PALM SPRINGS
AMEENAH FULLER.................................................................................19
2724 Gateway Drive I Riverside, CA 92507-0918 10
(951)486-7200 1 TTY(951) 697-8966 1 FAX (951)486-7272
www.voteinfo.net
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 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.
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 Part 1.6
of Division 2 of the Revenue and Taxation Code.
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.
E. To provide transactions and use tax revenue to the City to be used to fund general
governmental purposes.
Ordinance No. 1945 Page 2
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 such a contract.
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 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.
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;
12
Ordinance No. 1945 Page 3
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), 6711,
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
"retailer 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 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.
13
Ordinance No. 1945 Page 4
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 by a declaration
under penalty of perjury, signed by the buyer, stating that 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 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.
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.
14
Ordinance No. 1945 Page 5
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.
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. All 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.
15
Ordinance No. 1945 Page 6
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.
PASSED, APPROVED, AND ADOPTED BY THE PEOPLE OF THE CITY OF
PALM SPRINGS AT THE REGULAR MUNICIPAL ELECTION HELD THE 7T" DAY OF
NOVEMBER, 2017.
ATTEST: ROBERT MOON, MAYOR
KATHLEEN D. HART, MMC
INTERIM CITY CLERK
16
Ordinance No. 1945 Page 7
CERTIFICATION
STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) ss.
CITY OF PALM SPRINGS )
I, KATHLEEN D. HART, Interim 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.
adopted the 6th day of December, 2017.
KATHLEEN D. HART, MMC
INTERIM CITY CLERK
17
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 Purpose.
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.
I. "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"
� c
0
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
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Ordinance No. 1946 Page 4
3.42.045, but shall be exempt from paying the general business tax imposed by Title 3,
Division II 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 (ii) 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 3.42.100. 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 II 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 (H) 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:
1. 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
5. 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 II 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 Adjust 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
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
Ordinance No. 1946 Page 6
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.
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.
23
Ordinance No. 1946 Page 7
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.
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
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
24
Ordinance No. 1946 Page 8
taxpayer will be liable for the tax or fee due plus penalties and interest as provided for in
this section plus any amount allowed under state 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 (ii) the first date on which the cannabis business first operated in the city.
I
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.
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.
25
Ordinance No. 1946 Page 9
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
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
16
Ordinance No. 1946 Page 10
appeal in question is granted, or the cannabis business initiating any other action is the
prevailing party.
3.40.130 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 Assiqnee 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
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.
27
Ordinance No. 1946 Page 11
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.
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
28
Ordinance No. 1946 Page 12
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.
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.
29
Ordinance No. 1946 Page 13
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.
PASSED, APPROVED, AND ADOPTED BY THE PEOPLE OF THE CITY OF
PALM SPRINGS AT THE REGULAR MUNICIPAL ELECTION HELD THE 7T" DAY OF
NOVEMBER, 2017.
ATTEST: ROBERT MOON, MAYOR
KATHLEEN D. HART, MMC
INTERIM CITY CLERK
CERTIFICATION
STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) ss.
CITY OF PALM SPRINGS )
I, KATHLEEN D. HART, Interim 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 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. adopted the 6th day of December, 2017.
KATHLEEN D. HART, MMC
INTERIM CITY CLERK
30
REVISED
RESOLUTION NO.
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,
ADDITIONAL MATERIALS December 6, 2017 Special Item B
Resolution No.
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; NO
shall the City of Palm Springs establish a 'h cent sales tax;
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.
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 Y2 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.
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, Esq., Ph.D.
City Manager
ATTEST:
Kathleen D. Hart, MMC
Interim City Clerk
CERTIFICATION
STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) ss.
CITY OF PALM SPRINGS )
I, KATHLEEN D. HART, Interim City Clerk of the City of Palm Springs, hereby
certify that Resolution No. 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:
NOES:
ABSENT:
ABSTAIN:
Kathleen D. Hart, MMC
Interim City Clerk
CITY OF PALM SPRINGS
PUBLIC NOTIFICATION
ar
Date: December21, 2017
Subject: Ordinance 1946
AFFIDAVIT OF PUBLICATION
I, Cynthia A. Berardi, Chief Deputy City Clerk, of the City of Palm Springs, California, do
hereby certify that a copy of the attached Notice was published in the Desert Sun on
December 20, 2017.
1 declare under penalty of perjury that the foregoing is true and correct.
Cynthia A. Berardi, CMC
Chief Deputy City Clerk
AFFIDAVIT OF POSTING
I, Cynthia A. Berardi, Chief Deputy City Clerk, of the City of Palm Springs, California, do
hereby certify that a copy of the attached Notice was posted at City Hall,
3200 E. Tahquitz Canyon Drive, on the exterior legal notice posting board, and in the Office
of the City Clerk on or before December 20, 2017.
1 declare under penalty of perjury that the foregoing is true and correct.
Cynthia A. Berardi, CMC
Chief Deputy City Clerk
750 N Gene Autry Trail
mediagroup Palm Springs,CA 92262
Tel:760-7784578/Fax 760.778-4731
WTOITHsusa701)1,r,c Email:legals@thedeseFLsun.com
PROOF OF
PUBLICATION
STATE OF CALIFORNIA SS.
COUNTY OF RIVERSIDE
CITY OF PALM SPRINGSlLEGALS ----------------
PO BOX 2743 ORDINANCE NO.1946
AN ORDINANCE OF THE CRY OF PALM SPRINGS, CALIFORNIA, AMENDING
PALM SPRINGS CA 92263 CHAPTERS 91, RELATIVE TO
ZONING REQUIRE NTS AND AND 93 OF T SPRINGSHE PALM E DEVELOPMENT STANDARDS FORCOMMERCIAL
MEDICAL AND ADULT-USE CANNABIS FACILITIES.
CRy Attorney Summary
Thu Ordinance amends provisions of the City's Zoning Code to establish and
amend zoning regulations for new Commercial Medical and Adult-Use
I am over the age of 18 years old,a Citizen of the Regulation
Facilities,nSafety permitted under the Medical and Adult Use Cannabis
Re nabiis and Safety Ad.
United States and not a party to,or have interest in CERTIFICATION
this matter. I hereby certify that the attached STATE OF CALIFORNIA )
COUNTY Of RIVERSIDE ) ss.
advertisement appeared in said newspaper(set in CRY OF PALM SPRINGS )_
type not smaller than non pariel)in each and entire I,KATHLEEN D.HART,Interim City Clerk of the City of Palm Springs,California,
issue of said newspaper and not in an supplement do hereby certify that Ordinance No. 1943 is a full,true,and correct copy,and
Y PP was introduced at a regular meeting of the Palm Springs City Council on
thereof on the followingdates,t0 wit: November 15,2017 and adopted at a regular meeting of the City Council held
on December 6,2017 by the following lowing vote:
AYES:Councilmembers Kors,Roberts,Mayor Pro Tern Foat,and Mayor Moon
12/20/17 NOES: Councilmember Mills
ABSENT: None
ABSTAIN: None
RECUSAL None
I acknowledge that I am a principal clerk of the printer
of The Desert Sun, printed and published weekly in KATHLEEN D.HART,MIMIC
INTERIM CITY CLERK Published:1VZOI17
the City of Palm Springs, County of Riverside, Slate --of California. The Desert Sun was adjudicated a
Newspaper of general circulation on March 24, 1988
by the Superior Court of the County of Riverside,
State of California Case No. 191236. _I
I declare under penalty of perjury that the foregoing is '_ O c
true and correct. Executed on this 20th of c-) T'M
December 2017 in Palm Springs, California. N w n
-_J Tn
- 3 lnnl
9? rO
DECLARANT
Ad#:0002613012
P O:Ord 1946
#of Affidavits:1
750 N Gene Autry Trail
mediagroup Palm Springs,CA 92262
GTel:760-778-4578/Fax 760-77BA731
nmor Ms�snvunv Hrrwcsx Email:legals@thedesertsun.com
PROOF OF
PUBLICATION
STATE OF CALIFORNIA SS.
COUNTY OF RIVERSIDE
CITY OF PALM SPRINGS/LEGALS -
PO BOX 2743 ORDINANCE NO.1946
AN ORDINANCE OF THE CITY OF PALM SPRINGS,CALIFORNIA,IMPOSING A TAX
PALM SPRINGS CA 92263 ON CANNABIS BUSINESS ACTIVITY.
Summary
This Ordinance Imposes a gross receipts tax on any cannabis business conducted
in the City and a cultivation tax per square foot o cultivation area or fractional
part thereof on Palm Springs cannabis business.
CERTIFICATION
I am over the age of 18 years old,a citizen of the STATE OF CALIFORNIA )
United States and not a party to,or have interest in COUNTY OF RIVERSIDE ) is.
)
This matter. i hereby certify that the attached CITY OF PALM SPRINGS
1, ANTHONY J. ME11A, City Clerk of the City of Palm Springs, California, do
advertisement appeared in said newspaper(set in hereby certify that Ordinance No.1946 is a full,true,and correct copy,and was
type not smaller than non anel In each and entire adopted by a maloriry vote of the People of the City of Palm Springs, at the
yP P Regular Munlopa�Election held the 7th day of November,2017,as appears by
issue of said newspaper and not in any supplement the thhee City Council,Resoluti nl No.24333, adopted Statement
the 6th day of December,declared
thereof on the following dates,to wit: 2D17.
ANTHONY).ME11A,MMC
CRY CLERK Published:12/20/17
12/20/17 _........._
I acknowledge that I am a principal clerk of the printer
of The Desert Sun, printed and published weekly in
the City of Palm Springs, County of Riverside, State
of California. The Desert Sun was adjudicated a C-i =:
Newspaper of general circulation on March 24, 1988 T
by the Superior Court of the County of Riverside, c-J
State of California Case No. 191236. c, rn Yi ,
declare under penalty of perjury that the foregoing is 7_ —1 r m
true and correct. Executed on this 20th of M =
December 2017 in Palm Springs, California. -=� ,rr
rou
00 -r
r to 7
tr — GI
DECLARANT
Ad#:0002613012
P O: Ord 1946
#of Affidavits:1
ORDINANCE NO. 1946
AN ORDINANCE OF THE CITY OF PALM SPRINGS,
CALIFORNIA, IMPOSING A TAX ON CANNABIS
BUSINESS ACTIVITY.
Summary
This Ordinance imposes a gross receipts tax on any cannabis business
conducted in the City and a cultivation tax per square foot of cultivation
area or fractional part thereof on Palm Springs cannabis business.
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. 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 7'h 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 6'h day of December, 2017.
kNTf-IONY J.
CITY CLERK
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 Purpose.
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.
I. "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 II 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 (ii) 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 1s' 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 3.42.100. 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 II 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 (ii) 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 II 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 toAdiust 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.
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 under state 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 (ii) 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.
3.40.130 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
Ordinance No. 1946
Page 11
within 10 days after the city manager serves or mails the certificate. The appeal
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. 1946
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" DAY OF DECEMBER, 2017.
ROBERT MOON, MAYOR
ATTEST:
ANTHONY J. MEJIA, MMC
CITY CLERK
Ordinance No. 1946
Page 14
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. 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 7ch 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 6ch day of December, 2017.
ANTHONY J. MEJIA, MMC
CITY CLERK
CITY OF PALM SPRINGS
PUBLIC NOTIFICATION
Date: December21, 2017
Subject: Ordinance 1945
AFFIDAVIT OF PUBLICATION
I, Cynthia A. Berardi, Chief Deputy City Clerk, of the City of Palm Springs, California, do
hereby certify that a copy of the attached Notice was published in the Desert Sun on
December 20, 2017.
1 declare under penalty of perjury that the foregoing is true and correct.
Cynthia A. Berardi, CMC
Chief Deputy City Clerk
AFFIDAVIT OF POSTING
I, Cynthia A. Berardi, Chief Deputy City Clerk, of the City of Palm Springs, California, do
hereby certify that a copy of the attached Notice was posted at City Hall,
3200 E. Tahquitz Canyon Drive, on the exterior legal notice posting board, and in the Office
of the City Clerk on or before December 20, 2017.
1 declare under penalty of perjury that the foregoing is true and correct.
zlw1-Z?-
Cynthia A. Berardi, CMC
Chief Deputy City Clerk
750 N Gene Autry Trail
mediagroup Palm Springs,CA 92262
Tel:760-778-4578!Fax 760-7784731
racrormtuv.-conr Hrx:.. Email: legals@lhedesertsun.com
PROOF OF
PUBLICATION
STATE OF CALIFORNIA SS.
COUNTY OF RIVERSIDE
ORDINANCE NO.1945
CITY OF PALM SPRINGS/LEGALS AN ORDINANCE OF THE CRY OF PALM SPRINGS,CALIFORNIA,IMPOSINGA
PO BOX 2743 GENERAL TRANSACTIONS AND USETAx,
Surma y
This Ordinanceimposes upon all retailers a fh ceM transactions and um
PALM SPRINGS CA 92263 tax on tangRA9 personal property.
CERTIFICATION
STATE OF CALIFORNIA j
COUNTY OF RR/ERSIDE } a,
CRY OF PALM SPRINGS J
I am over the age of 18 years old, a atizen of the 1, ANTHONY L NlEIU6 CNy clerk of the or palm springy, California, de
United States and not a party to,or have interest in hereby certify Met Ordinance No.1945 h a full.true,and correct mpy,and was
adopted by a majority vote of the People of the Cd(yn of Palm Springs, at the
this matter. I hereby certify that the attached tpuuolfNrdalrrefoarem oof clod eleccddon a a t erySta Nei s t ry Cart declared
advertisement appeared in said newspaper(set in M the CRy Coundt Resolution No.243A adopted the 6th dog of December,
2017.
type not smaller than non pariel)in each and entire
issue of said newspaper and not in any supplement ACITYNT aONY J'b�A hM
PublNhad:12=17
thereof on the following dates,to wit: -
12/20/17
1 acknowledge that I am a principal clerk of the printer
of The Desert Sun, printed and published weekly in Ii r
the City of Palm Springs, County of Riverside, Stale
of California.The Desert Sun was adjudicated a co
Newspaper of general circulation on March 24, 1988 c n -,
by the Superior Court of the County of Riverside, N <=
State of California Case No. 191236.
I declare under penalty of perjury that the foregoing is
true and correct. Executed on this 20th of
r
December 2017 in Palm Springs, California. E+J
DECLARANT
Ad#:0002612369
P O:ORDINANCE NO. 1945
#of Affidavits:1
ORDINANCE NO. 1945
AN ORDINANCE OF THE CITY OF PALM SPRINGS,
CALIFORNIA, IMPOSING A GENERAL TRANSACTIONS
AND USE TAX.
Summary
This Ordinance imposes upon all retailers a % cent general transactions
and use tax on tangible personal property.
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.
H 0 N
CITY CLERK
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
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.
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 Part 1.6 of Division 2 of the Revenue and Taxation Code.
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 such a
contract.
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
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), 6711,
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
"retailer 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 by a declaration under penalty of perjury, signed by the buyer, stating that
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
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.
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 BY THE PALM SPRINGS CITY
COUNCIL THIS 6T" DAY OF DECEMBER, 2017.
ROBERT MOON, MAYOR
ATTEST:
ANTHONY J. MEJIA, MMC
CITY CLERK
Ordinance No. 1945
Page 8
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.
ANTHONY J. MEJIA, MMC
CITY CLERK