SanDiegoCounty.gov
File #: 23-091    Version: 1
Type: Financial and General Government Status: Withdrawn
File created: 2/10/2023 In control: BOARD OF SUPERVISORS
On agenda: 2/28/2023 Final action: 2/28/2023
Title: ADMINISTRATIVE ITEM: SECOND CONSIDERATION AND ADOPTION OF ORDINANCE: CONSIDERATION AND ADOPTION OF AN ORDINANCE TO SET RATES FOR THE VOTER APPROVED CANNABIS BUSINESS TAX (1/24/2023 - First Reading; 2/28/2023 - Second Reading, unless ordinance is modified on Second Reading) (DISTRICTS: ALL)
Attachments: 1. Setting Rates for the Cannabis Tax BL, 2. Agenda Information Sheet Initial Tax Rates Final, 3. Approval Log Initial Tax Rates Final, 4. Att A Tax Rate Ordinance Gross Receipts Method for Cultivation, 5. Att B Tax Rate Ordinance Square Footage Method for Cultivation, 6. Att C HdL Companies Summary of Recommendations Memo, 7. Att D HdL Companies Fiscal Revenue Analysis April 2022, 8. Att E Summary of Proposed Ordinance, 9. 02282023 ag10 Public Communications 1, 10. 02282023 ag10 Speakers, 11. 02282023 ag10 Minute Order

DATE:
January 24, 2023 and February 28, 2023
10

TO:
Board of Supervisors

SUBJECT
Title
ADMINISTRATIVE ITEM:
SECOND CONSIDERATION AND ADOPTION OF ORDINANCE: CONSIDERATION AND ADOPTION OF AN ORDINANCE TO SET RATES FOR THE VOTER APPROVED CANNABIS BUSINESS TAX (1/24/2023 - First Reading; 2/28/2023 - Second Reading, unless ordinance is modified on Second Reading) (DISTRICTS: ALL)

Body
OVERVIEW
On January 24, 2023 (16), the Board of Supervisors took action to further consider and adopt the Ordinance on February 28, 2023.

On January 27, 2021 (4), the Board of Supervisors (Board) directed the Chief Administrative Officer (CAO) to explore the implementation of a commercial cannabis ordinance, regulations, and programs with a social equity component for the unincorporated area, including the development and implementation of a commercial cannabis taxation program. Relating to the commercial cannabis taxation program, County of San Diego (County) staff returned to the Board on May 10, 2022 (20), with a draft cannabis business tax ordinance and fiscal revenue analysis developed in conjunction with HdL Companies (HdL), the County's cannabis taxation program consultant.

Then, on June 14, 2022 (21), and June 28, 2022 (27), the Board took various actions necessary to place the cannabis business tax measure on the ballot for voter consideration during the consolidated general election on November 8, 2022. In addition to taking these actions, the Board directed the CAO to return to the Board to establish the actual tax rates should the measure be approved by the voters.

The Registrar of Voters certified the November 8, 2022, consolidated general election on December 8, 2022. The County's Cannabis Business Tax (Measure A) required a majority vote (50% plus one) to pass. Measure A passed with a final result of 57.45% of voters voting in favor of the measure.

Today's recommendation is for the Board to approve the introduction of an ordinance (first reading) setting ...

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