City Council Minutes 2020 02 04 - Laserfiche WebLink

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City Council Meeting Minutes February 4, 2020 Page 4 of 9 Attorney Kelly noted voters approved an excise tax on marijuana cultivation at the November election. The excise tax has been in effect since January but there are no facilities currently open. The Finance Department has identified some additional provisions from the City's sale and use tax code that it desires be added to the administrative procedures for the excise tax. These address record keeping, the confidential nature of tax information, the City's costs of collection, procedures for tax disputes, taxpayer appeals, and unlawful acts, The goal is to keep these rules the same as the existing sales and use tax rules so it is consistent in the code. Additionally, this ordinance removes section 5.11.210.A.5 which currently prohibits retail marijuana stores from selling more than a quarter of an ounce of marijuana or more than a quarter of an ounce equivalent of retail marijuana product during a single transaction to a nonresident of the State. This change aligns the City's regulations with State rules. Public Comments — None. Councilmember Lipton asked what the tax rate would be. Attorney Kelly noted the tax rate was set in the original ordinance at 5% and ballot authorization allows it to go up to 10%. Mayor Pro Tern Maloney asked if the rules requiring books and records to be preserved are new. City Attorney Kelly stated these would align the rules with the code for sales and use tax licensees. Councilmember Dickinson asked if the change to a full ounce brought any negative issues in the surrounding communities. Muth stated she has not heard from the neighboring licensing clerks that it created any issues. Public Comments — None. Councilmember Lipton moved to approved Ordinance No. 1789; Councilmember Fahey seconded the motion. Mayor Stolzmann stated she is in favor of the update to the tax code to have consistent rules in the code and the amendment to change to one ounce to standardize things with our neighboring communities. Councilmember Dickinson stated he understood the original % ounce rule made sense at the time but the change does make sense now to align us with our neighbors. Mayor Stolzmann closed the public hearing. Vote: Motion carried by unanimous roll call vote.