Finance Committee Agenda and Packet 2019 04 22

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City Council Finance Committee Meeting Minutes 04/01/19 Page 3 of 8 The reports and corresponding narrative can be located in the packet of the April 1, 2019 Finance Committee Meeting. EXCISE TAX FOR MARIJUANA CULTIVATION Mr. Nick Cotton -Baez from the City Attorney's Office presented ballot language obtained from the Colorado Municipal League (CML) and used by multiple municipalities proposing marijuana excise taxes. Finance Committee Chairperson Maloney stated that some of the ballot measure examples provided impose excise taxes on the retail sale of marijuana, not just cultivation. Chairperson Maloney asked Committee Members if there is any interest in imposing an excise tax on retail sales. All Finance Committee Members agreed that the interest is only to impose an excise tax on the cultivation of marijuana in the City. Chairperson Maloney asked that the City Attorney's office review the ballot language for only those measures that imposed an excise tax on marijuana cultivation, and to bring back some pared -down ballot language examples for the April 22, 2019 Finance Committee meeting. Chairperson Maloney stated the question should be limited to whether or not cultivation should be allowed and to set the excise tax rate. Finance Director Kevin Watson stated that the base on which the excise tax would be imposed needs to be determined. Chairperson Maloney stated that it will also be difficult setting the first tax year amount. Finance Committee Member Lipton stated that the City should not make the ballot language complicated. Member Lipton also stated that some cities' measures designated the excise tax revenue would be used for specific programs such as youth education, schools, capital improvements, police, etc. Chairperson Maloney stated that he would only be in favor of designating the revenue if it would help the vote. City Manager Balser stated that staff generally prefers not to dedicate tax revenue. Mayor Muckle stated that he would be okay with the excise tax going to the General Fund and transferred depending on needs. Deputy City Manager Davis stated that any new programs would have to be developed if, for example, the revenue was earmarked for youth education, noting that some cities used "and other general purposes" in their ballot language. Chairperson Maloney stated that he would not want to fund programs or activities that have nothing to do with marijuana cultivation. The Finance Committee and staff discussed the excise tax rate to be proposed. Mayor Muckle stated that the City should offer a level playing field for cultivation operations that is similar to the surrounding area. Finance Committee Chairperson 4