Loading...
HomeMy WebLinkAbout08231ORDINANCE NO. 8231 AN ORDINANCE SUBMITTING TO THE ELIGIBLE ELECTORS OF THE CITY OF PUEBLO, COLORADO AT THE SPECIAL MUNICIPAL ELECTION TO BE HELD ON NOVEMBER 2, 2010, A QUESTION RELATNG TO THE IMPOSITION OF A MEDICAL MARIJUANA TAX ON THE SALE AND PURCHASE OF MEDICAL MARIJUANA AND PARAPHERNALIA, THE ADOPTION OF ORDINANCE NO. 8208 TO EFFECT SUCH TAX, AND AUTHORIZING THE REVENUES DERIVED THEREFROM TO BE COLLECTED AND SPENT AS A VOTER APPROVED REVENUE CHANGE BE IT ORDAINED BY THE CITY COUNCIL OF PUEBLO, that: SECTION 1. The question of adopting Ordinance No. 8208 and thereby imposing a medical marijuana tax on the sale and purchase of medical marijuana and medical marijuana paraphernalia shall be submitted to a vote of the eligible electors of the City at the City's special municipal election to be held on November 2, 2010. The ballot question (submission clause and title) therefore shall be as follows: Question No. _____ (Imposing Medical Marijuana Tax) SHALL THE CITY OF PUEBLO'S TAXES BE INCREASED BY $500,000 ANNUALLY (FIRST FULL FISCAL YEAR INCREASE), AND BY WHATEVER AMOUNTS ARE RAISED ANNUALLY THEREAFTER, THROUGH THE ADOPTION OF ORDINANCE NO. 8208 IMPOSING A MEDICAL MARIJUANA TAX AT THE RATE OF 4.3% ON THE PRICE PAID OR CHARGED FOR MEDICAL MARIJUANA AND MEDICAL MARIJUANA PARAPHERNALIA; AND SHALL ALL REVENUES DERIVED FROM SUCH MEDICAL MARIJUANA TAX BE COLLECTED AND SPENT AS A VOTER APPROVED REVENUE CHANGE AND AN EXCEPTION TO THE LIMITS WHICH WOULD OTHERWISE APPLY PURSUANT TO ARTICLE X, SECTION 20 OF THE COLORADO CONSTITUTION OR ANY OTHER LAW, AND ALLOWING SUCH REVENUE TO BE EXPENDED AS THE CITY COUNCIL SHALL DETERMINE? YES _____ NO _____ SECTION 2. The officers of the City are authorized and directed to take all action necessary, appropriate or required to effectuate the provisions of this Ordinance. SECTION 3. This Ordinance shall become effective upon final passage and approval. INTRODUCED: June 14, 2010 BY: Judy Weaver /COUNCILPERSON PASSED AND APPROVED: July 12, 2010 Background Paper for Proposed ORDINANCE Agenda Item # R-4 DATE: June 14, 2010 DEPARTMENT: Law Department Thomas J. Florczak, City Attorney TITLE AN ORDINANCE SUBMITTING TO THE ELIGIBLE ELECTORS OF THE CITY OF PUEBLO, COLORADO AT THE SPECIAL MUNICIPAL ELECTION TO BE HELD ON NOVEMBER 2, 2010, A QUESTION RELATNG TO THE IMPOSITION OF A MEDICAL MARIJUANA TAX ON THE SALE AND PURCHASE OF MEDICAL MARIJUANA AND PARAPHERNALIA, THE ADOPTION OF ORDINANCE NO. 8208 TO EFFECT SUCH TAX, AND AUTHORIZING THE REVENUES DERIVED THEREFROM TO BE COLLECTED AND SPENT AS A VOTER APPROVED REVENUE CHANGE ISSUE Should the City Council submit a ballot question at the November 2, 2010 special municipal election asking voters to impose a medical marijuana tax on the sale and purchase of medical marijuana and medical marijuana paraphernalia? RECOMMENDATION This Ordinance must be adopted in order to refer the measure to the voters. BACKGROUND The sale and purchase of medical marijuana is subject to City sales and use tax. However, due to the anticipated increased demands upon municipal services associated with medical marijuana facilities, the City Manager has proposed for Council consideration an additional excise tax on the privilege of purchasing medical marijuana and medical marijuana paraphernalia. Due to the requirements of the Taxpayers Bill of Rights ("TABOR"), Article X, §20 of the Colorado Constitution, any new tax must be approved by the voters. This measure would present that question to the voters and, if approved, would also "De-Bruce" the revenue derived from the medical marijuana tax (i.e., exempt it from the revenue growth and spending limitations of TABOR). FINANCIAL IMPACT The amount of tax revenue that the measure will generate is subject to speculation; however, for the purpose of ballot submission under TABOR, it has been assumed that the taxes in the first year will not exceed $500,000.00.