HomeMy WebLinkAboutReso 82-2019 (19-288)City of South San Francisco P.O. Box 711 (City Hall,
400 Grand Avenue)
South San Francisco, CA
lipCity Council
Resolution: RES 82-2019
File Number: 19-288 Enactment Number: RES 82-2019
A RESOLUTION ADJUSTING THE CANNABIS BUSINESS
LICENSE TAX RATE SET FORTH IN SECTION 6.16.037 OF THE
SOUTH SAN FRANCISCO MUNICIPAL CODE, CONSISTENT
WITH THE AUTHORITY GRANTED BY THE VOTER APPROVED
ORDINANCE NO. 1556.
WHEREAS, on November 7, 2018, a majority of the City's voters approved Ordinance No. 1556
imposing an excise tax on the privilege of conducting business within the City pursuant to Article XIIIC,
section 2(b) of the California Constitution; and
WHEREAS, revenues from the cannabis business tax will be for unrestricted general revenue purposes
and go into the City's general fund and can be used for any legitimate government purpose; and
WHEREAS, the ordinance established a minimum rate of one percent (1%) of gross receipts for all
commercial cannabis operations; and
WHEREAS, the ordinance established varying maximum rates of two and half percent (2.5%) of gross
receipts for testing, three percent (3%) of gross receipts for distribution, four percent (4%) of gross
receipts for cultivation, and five percent (5%) of gross receipts for manufacturing, delivery -only, and all
other commercial cannabis operations; and
WHEREAS, the ordinance adopted Section 6.16.037 of the South San Francisco Municipal Code
which authorizes City Council to adjust by resolution or ordinance the cannabis business license tax
rates; and
WHEREAS, the City Council desires to adjust the cannabis business license tax for the privilege of
operating within the City consistent with the recommendation of the City consultant and within the
authorized rates granted by the voter approved ordinance; and
WHEREAS, based on all of the information presented at the June 26, 2019 City Council meeting, both
written and oral, including without limitation the staff reports, minutes, and other relevant materials
(hereafter the "Record"), the City Council finds that under CEQA Guidelines 15060(c)(2) and
15378(b)(4), this tax does not constitute a project under CEQA and therefore review under CEQA is not
required.
NOW, THEREFORE, BE IT RESOLVED that the City Council of South San Francisco hereby
RESOLVES as follows:
City of South San Francisco Page 1
File Number: 19-288
Enactment Number., RES 82-2019
1. The foregoing recitals are true and correct and incorporated herein as part of this Resolution.
2. The proposed actions in this Resolution are consistent with the voter approved Ordinance No.
1556, which adopted the cannabis business license tax set forth in Section 6.16.037 of the South San
Francisco Municipal Code.
3. The cannabis business license tax shall be adjusted as follows and is hereby approved:
One percent (1%) of gross receipts for cannabis testing operations;
Two percent (2%) of gross receipts for cannabis cultivation and distribution operations;
Three percent (3%) of gross receipts for cannabis manufacturing operations; and
Three percent (3%) of gross receipts for cannabis delivery -only operations and all other commercial
cannabis business.
4. The City Manager, or his designee, is authorized to execute any necessary related documents.
5. The City Manager, or his designee, is authorized take any and all other actions necessary to
implement this intent of this Resolution, subject to approval as to form by the City Attorney.
At a meeting of the City Council on 6/26/2019, a motion was made by Richard Garbarino, seconded by Mark
Addiego, that this Resolution be approved. The motion passed.
Yes: 5 Mayor Matsumoto, Vice Mayor Garbarino, Councilmember Addiego,
Councilmember Nagales, and Councilmember Nicolas
Attest by
fiosaovea Acosta
City of South San Francisco Page 2