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ORDINANCE NO. 8208
AN ORDINANCE AMENDING TITLE XIV OF THE PUEBLO
MUNICIPAL CODE BY THE ADDITION OF CHAPTER 11
THERETO IMPOSING A MEDICAL MARIJUANA TAX ON
THE SALE AND PURCHASE OF MEDICAL MARIJUANA
AND MEDICAL MARIJUANA PARAPHERNALIA, AND
PROVIDING PENALTIES FOR THE VIOLATION THEREOF
BE IT ORDAINED BY THE PEOPLE OF THE CITY OF PUEBLO, that (brackets
indicate matter being deleted; underscoring indicates new matter being added):
SECTION 1.
Title XIV of the Pueblo Municipal Code, as amended, is amended by the addition
of a new Chapter 11 thereto, to read as follows:
CHAPTER 11
Medical Marijuana Tax
Sec. 14-11-1. Definitions.
(a) The following definitions shall apply to the words and phases used
in this Chapter:
(1) Medical Marijuana shall mean marijuana intended for
medical use by persons suffering from a debilitating medical condition
under the authority of Article 18, §14 of the Colorado Constitution,
including any preparation containing marijuana for such use or purpose.
(2) Medical marijuana paraphernalia means all equipment,
products and materials of any kind which are used, intended for use, or
designed for the administration of medical marijuana.
(3) Medical marijuana tax small mean the tax imposed by this
Chapter.
(4) Person shall mean a natural person, partnership, sole-
proprietorship, association, corporation, limited liability company, estate,
receiver, trustee, assignee, lessee or any individual acting in a
representative capacity or any other combination of individuals by
whatever name known.
(5) Taxpayer shall mean any person obligated to collect or remit
medical marijuana tax or to account to the Director of Finance for medical
marijuana taxes collected or to be collected under the provisions of this
Chapter.
(b) All other words and phases used in this Chapter shall have the
meaning set out in the City Charter, in Chapter 1 of Title I, or Chapter 4 of this
Title.
Sec. 14-11-2. Intent.
The People of Pueblo hereby declare that, on and after the effective date
of this Chapter, every person who purchases medical marijuana or medical
marijuana paraphernalia exercises a taxable privilege, and that every person who
sells medical marijuana and medical marijuana paraphernalia is exercising a
privilege for which the obligation to collect the medical marijuana tax should
apply. The medical marijuana tax established by this Chapter is an excise tax.
Sec. 14-11-3. Levy of tax.
There is hereby levied upon every person who purchases medical
marijuana or medical marijuana paraphernalia a tax at the rate of four and three-
tenths percent (4.3%) of the price paid or charged for same and such person
shall be liable to the person providing the medical marijuana or medical
marijuana paraphernalia for the payment of such tax. This tax shall be in
addition to any other tax imposed by law including but not limited to City sales
tax.
Sec. 14-11-4. Collection and remittance liability.
Every person receiving consideration for providing medical marijuana or
medical marijuana paraphernalia in this City shall collect the medical marijuana
tax from the person paying for the medical marijuana or medical marijuana
paraphernalia at the time it is paid. Said tax shall be deemed to be held in trust
by the person required to collect it for the use and benefit of the City, until it is
remitted to the Director of Finance as herein provided.
Sec. 14-11-5. Reports and remittance.
(a) The Director of Finance may require any person subject to this
Chapter to maintain and furnish such returns, statements and records as the
Director deems necessary to a determination of the medical marijuana tax liability
of such person from the best information reasonably available to him or her.
(b) Every person required to collect medical marijuana tax hereunder
shall remit the full amount of such tax to the City within five (5) calendar days
after the date such tax was collected, provided that the Director of Finance may
authorize persons collecting medical marijuana tax on a regularly continuing or
recurring basis to file monthly reports and remittances, which shall be due on the
twentieth day of the month following each month in which medical marijuana
taxes were collected.
(c) Persons collecting medical marijuana tax may either add the tax to
the medical marijuana charge as a separate and distinct item or may add the
medical marijuana tax to the sales tax without separately identifying it as medical
marijuana tax, but no person shall represent directly or indirectly that the tax will
be assumed, absorbed or refunded, and addition of the medical marijuana tax to
the sales tax shall not relieve any person collecting tax from liability for payment
of the full amount of the tax levied hereunder.
Sec. 14-11-6. Penalty and interest for failure to collect or remit tax.
(a) A taxpayer who fails to collect or remit any medical marijuana tax
shall be personally liable to the City for the amount of the tax and all interest and
additions imposed under this Chapter.
(b) A taxpayer who fails to pay the full amount of the medical marijuana
tax when due shall be assessed interest on the amount of deficiency from the
date due to the date paid at a rate equal to the current annual adjusted rate of
interest determined under Section 39-21-110.5, C.R.S., as amended.
(c) If any part of the deficiency is due to negligence or intentional
disregard of authorized rules and regulations, but without intent to defraud, there
shall be added ten percent (10%) of the amount of the deficiency and interest
shall be assessed on the total amount of the deficiency at a rate equal to one and
one-half (1-1/2) times the rate specified in Subsection (b) above. If any part of
the deficiency is due to fraud with intent to evade the tax, fifty percent (50%) of
the amount of the deficiency and interest shall be assessed on the total amount
of the deficiency at a rate equal to twice the rate specified in Subsection (b)
above. Interest and additions assessed under this Subsection (c) shall be paid
by the taxpayer within ten (10) days after notice and demand.
(d) The Director of Finance is hereby authorized to waive, for good
cause shown, all or any part of the additions assessed, or any interest in excess
of the current annual adjusted rate of interest determined under Section 39-21-
110.5, C.R.S., as amended.
Sec. 14-11-7. Licenses to be obtained.
Every person required to collect or remit medical marijuana tax hereunder
shall obtain a sales and use tax license from the Director of Finance. The
issuance of a sales and use tax license does not authorize, and shall not be
construed to authorize, the sale of medical marijuana by any person. Each
application for said sales and use tax license shall be accompanied by a cash
deposit or bond in such amount and in such form as is determined by the
Director of Finance to be sufficient to secure compliance with all provisions of this
Chapter. Said license shall be issued and shall be valid until revoked.
Sec. 14-11-8. Rules and regulations.
The Director of Finance is hereby authorized to adopt rules and
regulations not inconsistent with the provisions of this Chapter, regarding the
payment, collection and remittance of the medical marijuana tax. A copy of all
such rules and regulations shall be available for public inspection in the office of
the Director of Finance. Failure or refusal to comply with any such rules or
regulations shall constitute a violation of this Chapter.
Sec. 14-11-9. Provisions incorporated by reference.
Except where the context otherwise requires, all definitions and provisions
contained in Chapter 4 of this Title are incorporated into this Chapter 11 by
reference as if fully set forth herein, except that any reference therein to sales or
use tax shall be deemed to refer to medical marijuana tax. All procedural and
enforcement powers and remedies conferred in said Chapter 4 on the Director or
on the City shall also apply to and be available for the enforcement of the
provisions of this Chapter, and all rights and remedies granted to taxpayers
thereunder shall also apply to and be available for persons subject to this
Chapter, provided that in case of conflict between this Chapter and said Chapter
4, the provisions of this Chapter shall control.
Sec. 14-11-10. Judicial review.
Any person aggrieved by a final determination of the Director of Finance
under this Chapter may obtain judicial review under the same terms and
conditions set out in Section 14-4-33 of this Title.
Sec. 14-11-11. Criminal penalties for violation.
Any person who violates any provision of this Chapter shall, upon
conviction, be punished by a fine not exceeding one thousand dollars ($1,000) or
imprisonment not exceeding one (1) year, or by both such fine and imprisonment,
in addition to any civil penalty provided herein.
Sec. 14-11-12. Severability.
If any section, subsection, paragraph, clause or other provision of this
Chapter for any reason is invalid or unenforceable, the invalidity or
unenforceability of such section, subsection, paragraph or clause or other
provision shall not affect any of the remaining provisions of this Chapter.
SECTION 2.
This Ordinance shall become effective upon the majority vote in favor thereof by
the registered electors of the City voting thereon at the Special Municipal Election to be
held Tuesday, November 2, 2010.
Election Results: November 2, 2010
YES 19,433
NO 11,725