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.