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10A Action 2020 0218
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10A Action 2020 0218
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2/12/2020 5:25:01 PM
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2/12/2020 5:24:56 PM
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CM City Clerk-City Council
CM City Clerk-City Council - Document Type
Agenda
Document Date (6)
2/18/2020
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Reso 2020-018
(Amended by)
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\City Clerk\City Council\Resolutions\2020
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File Number: 20-051 <br />Prior to bringing Measure NN before the voters, City officials and staff declared during various <br />public meetings and community events that the intention of the “up to 10%” language of the tax <br />measure was meant to provide flexibility in the rate at which the tax would be imposed. Factors <br />supporting such flexibility include: <br />·ensuring that local cannabis businesses maintain their competitiveness with other <br />businesses operating in neighboring communities; <br />·recognition of the significant up-front costs associated with starting up a cannabis <br />business; and <br />·ensuring that the cumulative federal, state, and local taxes imposed on such businesses <br />would not serve to further incentivize the unregulated market. <br />Regional Context <br />Below is a list of the cannabis tax rates currently imposed in neighboring Bay Area communities, <br />based on online research: <br />City of Alameda 0% <br />Berkeley 2.5% of gross receipts (medicinal) <br />5% of gross receipts (adult use) <br />Emeryville 3% of gross receipts (retail dispensaries and delivery) <br />2% of gross receipts (manufacturing) <br />1% of gross receipts (distribution & laboratory testing) <br />Hayward 6% of gross receipts <br />Oakland 0.12% of gross receipts (businesses with revenue < $500K/year) <br />2020: <br />5% (medicinal), <br />6.5% (adult-use) [businesses w/ revenue of $500K to $5M/year] <br />9.5% (adult-use) [businesses w/ revenue >$5M/year <br />2021: <br />5% (adult-use) [businesses w/ revenue of $500K to $5M/year] <br />8% (adult-use) [businesses w/ revenue >$5M/year <br />2022: <br />4% [businesses w/ revenue of $750K to $1.5M/year] <br />5% [business w/ revenue >$1.5M/year] <br />San Francisco 5% of gross receipts (retail businesses w/ revenue >$1M/year) <br />2.5% of gross receipts (retail business with revenue <$1M/year) <br />1.5% of gross receipts (non-retail >$1M/year) <br />Page 2 City of San Leandro Printed on 2/12/2020 <br />84
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