Every medical marijuana collective, cooperative, dispensary, operator, establishment, provider or other type of entity legally cultivating medical marijuana in the City, consistent with the provisions of the Medical Marijuana Program Act (California Health and Safety Code Section 11362.5 et seq.), shall pay an annual tax of $5.75 per square foot for space utilized in connection with the cultivation of marijuana for medical use.
(Ord. 559 11-4-14; Ord. 733 3-2-21; Ord. 795, 12/5/2023; Ord. 796, 3/5/2024)
This tax shall not be specifically charged or assessed to any qualified patient or primary caregiver. Payment and remittance of the tax to the City shall solely be the responsibility of the medical marijuana collective, cooperative, dispensary, operator, establishment, provider or other type of entity, that is authorized to legally cultivate medical marijuana, within the City, consistent with the provisions of the Medical Marijuana Program Act (California Health and Safety Code Section 11362.5 et seq.).
(Ord. 559 11-4-14)
“Space utilized in connection with the cultivation of medical marijuana” means any horizontal canopy space used during the marijuana germination, seedling, vegetative, pre-flowering, flowering and harvesting phases related to the growth cycle of the marijuana plant, to include areas where live plants are present. “Space” excludes the area used for lighting, warming, cooling, aerating, fertilizing, watering, irrigating, topping, pinching, cropping, curing or drying marijuana, or any such space used for storing any products, supplies or equipment related to any such activities, no matter where such storage may take place or such storage space may be located, including temporary storage of marijuana plants.
(Ord. 559 11-4-14; Ord. 789 10-17-23)
A. 
A six-month tax waiver shall be automatically applied to tax liability for cannabis cultivation facilities upon the issuance of a new regulatory permit if all of the following criteria are met:
1. 
The cultivator was not already cultivating plants at a facility associated with the new regulatory permit at the time of its issuance.
2. 
The cultivator's facility is located at the same physical address as a prior cultivator and does not share existing plants, equipment, or owners with the prior cultivator.
B. 
This section shall not apply to cultivators who changed ownership, obtained a new regulatory permit, and possess live plants from the previous owner.
(Ord. 800, 4/16/2024)
The taxes imposed by this chapter shall be adjusted annually beginning on July 1, 2015, and July 1st of each succeeding year based on the Consumer Price Index (CPI) for All Urban Consumers in the Los Angeles-Riverside-Orange County areas as published by the United States Government Bureau of Labor Statistics; however, no adjustment shall decrease any tax imposed by this chapter, unless approved by the City Council.
(Ord. 559 11-4-14)
The taxes imposed by this chapter shall be remitted to the City monthly, on or before the 1st of each month.
(Ord. 559 11-4-14; Ord. 800, 4/16/2024)
The City Council may repeal this chapter, or amend it in a manner which does not result in an increase in the amount of the tax or broaden the scope of the tax imposed herein, without further voter approval. If the City Council repeals any provision of this chapter, it may subsequently reenact it without voter approval, as long as the reenacted provision does not result in an increase in the amount of the tax or broaden the scope of the tax imposed herein.
(Ord. 559 11-4-14)
The City Manager, or designee, and/or the City Council by ordinance, may promulgate regulations to implement and administer the provisions of this chapter.
(Ord. 559 11-4-14)
Any entity that fails to pay the taxes required by this chapter within 30 days after the due date shall pay in addition to the taxes a penalty for nonpayment in a sum equal to 25 percent of the total amount due. Additional penalties will be assessed in the following manner: 10 percent shall be added on the first day of each calendar month following the month of the imposition of the 25 percent penalty if the tax remains unpaid— up to a maximum of 100 percent of the tax payable on the due date. Receipt of the tax payment in the office shall govern the determination of whether the tax is delinquent. Postmarks will not be accepted as adequate proof of a timely payment.
(Ord. 559 11-4-14)
A. 
Any violation of this chapter shall constitute a public nuisance and infraction pursuant to the provisions of Chapters 4.16 and 4.28 of this Code.
B. 
The amount of any tax, interest and penalty imposed by this chapter shall be deemed a debt to the City.
C. 
The remedies in this chapter are cumulative, and in addition to any and all other remedies, civil, equitable, or criminal, afforded to the City.
D. 
Any person owing any tax and related interest and penalty under the provisions of this chapter shall be liable in an action brought in the name of the City in any court of competent jurisdiction for recovery of any such amount.
E. 
Except as otherwise provided, the amendment or repeal of any portion of this chapter or other portions of this Code affecting this chapter shall not be construed to operate as a release or waiver of any liability or sum of money which may be due or owing to the City from any person under the provisions of this Code as they existed prior to such amendment or repeal.
(Ord. 559 11-4-14; Ord. 789 10-17-23)
Whenever it is necessary to examine any books or records, including tax returns, of any entity subject to the provisions of this chapter, to ascertain the amount of any tax due pursuant to this chapter, the City shall have the power and authority to examine such necessary books and records at any reasonable time, including, but not limited to, during normal business hours. Records must be maintained for at least seven years.
(Ord. 559 11-4-14)
No payment of any tax required under the provisions of this chapter shall be construed as authorizing the conduct or continuance of any illegal business or of a legal business in an illegal manner. Nothing in this chapter implies or authorizes that any activity connected with the cultivation, possession or provision of marijuana is legal unless otherwise authorized and allowed by the State of California for medical purposes and permitted by the City.
(Ord. 559 11-4-14)
This tax shall become operative commencing upon the effective date of an ordinance permitting marijuana collectives, cooperatives, dispensaries, operators, establishments, providers or other type of entities to sell, distribute, exchange, deliver, provide or dispense medical marijuana within the jurisdictional boundaries of the City of Desert Hot Springs. The City shall provide a six-month cultivation tax ramp-up period for any new cultivation facility.
(Ord. 559 11-4-14; Ord. 789 10-17-23)