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AGENDA ITEM REVIEW FORM |
5.D.
Regular City Council Meeting
- Meeting Date:
- 02/24/2021
- Department Head:
- Kay Macuil
- Submitted By:
- Kay Macuil, City Attorney, Attorney's Office
Action Requested:
Motion
Ordinance
Ordinance
ITEM:
Discussion and possible action on any and all matters regarding Ordinance No. 413. An ordinance of the Mayor and City Council of the City of San Luis, Arizona, amending the San Luis City Code, Chapter 110 to include marijuana businesses in the general fee for business licenses; setting the effective date of November 30, 2020; repealing any conflicting provisions; and providing for severability. (Kay Marion Macuil, City Attorney)
A. Action on Reading of Ordinance No. 413 by title only
(City Clerk to read ordinance by title only
B. Action on Ordinance No. 413
A. Action on Reading of Ordinance No. 413 by title only
(City Clerk to read ordinance by title only
B. Action on Ordinance No. 413
SUMMARY:
On November 3, 2020, the voters passed Proposition 207, now Arizona Revised Statutes Title 36, Chapter 28.2 titled "Responsible Adult Use of Marijuana." The new Arizona law legalizes non-medical marijuana and it became law by the Governor's proclamation on November 30, 2020.
The law includes A.R.S. § 36-2864(B) which states in part that cities
" . . . may not levy or collect additional taxes of any kind on the sale of marijuana or marijuana products and may not levy or collect any fees or assessments of any kind on the sale of marijuana or marijuana products or on the licensing, operations or activities of marijuana establishments or marijuana testing facilities, unless the fee or assessment is of general applicability to individuals or businesses that are not engaged in the sale of marijuana or marijuana products."
The new Arizona law has prohibited counties, cities and towns from imposing sales taxes on marijuana. The law has required that medical marijuana and non-medical marijuana businesses be treated the same.
This Ordinance will include non-medical marijuana establishments and medical marijuana dispensaries and off-site cultivation locations under the new laws to be required along with other commercial establishments to pay the generally applicable annual business license fee. The higher business license fee passed by the City Council in 2015 for medical marijuana dispensaries and cultivations sites is subject to legal challenge under the new laws.
The Ordinance is effective retroactively to November 30, 2020, when Proposition 207 became law.
The law includes A.R.S. § 36-2864(B) which states in part that cities
" . . . may not levy or collect additional taxes of any kind on the sale of marijuana or marijuana products and may not levy or collect any fees or assessments of any kind on the sale of marijuana or marijuana products or on the licensing, operations or activities of marijuana establishments or marijuana testing facilities, unless the fee or assessment is of general applicability to individuals or businesses that are not engaged in the sale of marijuana or marijuana products."
The new Arizona law has prohibited counties, cities and towns from imposing sales taxes on marijuana. The law has required that medical marijuana and non-medical marijuana businesses be treated the same.
This Ordinance will include non-medical marijuana establishments and medical marijuana dispensaries and off-site cultivation locations under the new laws to be required along with other commercial establishments to pay the generally applicable annual business license fee. The higher business license fee passed by the City Council in 2015 for medical marijuana dispensaries and cultivations sites is subject to legal challenge under the new laws.
The Ordinance is effective retroactively to November 30, 2020, when Proposition 207 became law.
RECOMMENDATION / SUGGESTED MOTION:
A. I MOVE TO APPROVE THE READING OF ORDINANCE NO. 413 BY TITLE ONLY
(City Clerk to read Ordinance No. 413 by title only)
B. I MOVE TO APPROVE AND ADOPT ORDINANCE NO. 413.
Fiscal Impact
- IS THERE FISCAL IMPACT ASSOCIATED WITH THIS ITEM:
- Yes
- CITY/STATE/FEDERAL FUNDS:
- City
- TOTAL:
- Possible Income
- BUDGETED AMOUNT:
- N/A
- AVAILABLE AMOUNT TO TRANSFER:
- N/A
- ACCT NAME & GL#/REMAINING BALANCE BEFORE PURCHASE:
- N/A
FISCAL IMPACT STATEMENT (IF THIS IS A BUDGET TRANSFER, YOU MUST ATTACH THE BUDGET ADJUSTMENT FORM):
If a marijuana business is established in San Luis, the city will receive $100 per year for a business license fee.