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Ordinance No. 8754
AN ORDINANCE IMPOSING AN EXCISE TAX OF 8.0%
WHEN UNPROCESSED RETAIL MARIJUANA IS FIRST
SOLD OR TRANSFERRED BY A RETAIL MARIJUANA
CULTIVATION FACILITY AND BY IMPOSING AN
ADDITIONAL SALES TAX OF 4.3 % ON THE SALE OF
RETAIL MARIJUANA AND RETAIL MARIJUANA
PRODUCTS WHICH IS LOCATED IN THE CITY OF
PUEBLO
SECTION 1.
Title XIV of the Pueblo Municipal Code, as amended, is amended by the addition of a
new Chapter 13 thereto, to read as follows:
CHAPTER 13
Retail Marijuana Taxes
Sec. 14-13-1. Definitions.
(a) The following definitions shall apply to the words and phrases used
in this Chapter:
(1) means the amount determined by the
Average market rate
State of Colorado pursuant to C.R.S. 39-28.8-101(1), or such alternate
amount as may be determined by the Director of Finance as the average
price of unprocessed retail marijuana that is sold or transferred from a
retail marijuana cultivation facility to a retail marijuana products
manufacturer or retail marijuana store.
(2) shall mean a natural person, partnership, sole-
Person
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.
(3) means all or parts of the plant of the genus
Retail marijuana
cannabis whether growing or not, the seeds thereof, the resin extracted
from any part of the plant and every compound, manufacture, salt,
derivative, mixture, or preparation of the plant, its seeds, or its resin,
including marijuana concentrate. “Retail marijuana” does not include
industrial hemp, nor does it include fiber produced from the stalks, oil,
cake made from the seeds of the plant, sterilized seed of the plant that is
incapable of germination, or the weight of any other ingredient combined
with marijuana to prepare topical or oral administrations, food, drink, or
other product.
(4) has the same meaning as
Retail marijuana cultivation facility
defined in Section 12-43.4-103 (16), C.R.S.
(5) means concentrated retail
Retail marijuana products
marijuana products and retail marijuana products that are comprised of
retail marijuana and other ingredients and are intended for use or
consumption such as but not limited to, edible products, ointments, and
tinctures.
(6) has the same meaning as defined in
Retail marijuana store
Section 12-43.4-103 (20), C.R.S.
(7) means the excise tax and the sales tax
Retail marijuana tax
imposed by this Chapter.
(8) means any exchange or barter, in any manner or by any
Sale
means whatsoever, for consideration.
(9) means to grant, convey, hand over, assign, sell,
Transfer
exchange, or barter, in any manner or by any means, with or without
consideration.
(b) All other words and phrases 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. 14-13-2. Intent.
The People of Pueblo hereby declare that, on and after January 1, 2015, an
additional excise tax be imposed on the first sale or transfer of unprocessed retail
marijuana by a retail marijuana cultivation facility within the City and an additional
sales tax be imposed on every retail sale of retail marijuana or retail marijuana
products within the City.
Sec. 14-13-3. Imposition and Rate of Tax.
(a) Excise Tax. In addition to any other tax imposed by law including
the sales and use tax levied in Chapter 4 of this Title, there is levied and shall be
paid and collected an excise tax of 8.0 percent or such other rate as may be
established pursuant to Section 14-13-13 of this Chapter on the average market
rate of unprocessed retail marijuana that is first sold or transferred from a retail
marijuana cultivation facility located within the City. The excise tax shall be levied
and owed irrespective of where delivery takes place.
(b) Sales Tax. In addition to any other tax imposed by law including the
sales and use tax levied in Chapter 4 of this Title, there is hereby levied and there
shall be collected and paid a sales tax of 4.3 percent or such other rate as may be
established pursuant to Section 14-13-14 of this Chapter on the full purchase price
paid or charged upon all sales of retail marijuana or retail marijuana products.
Sec. 14-13-4. Vendor Liable for Tax.
(a) Excise Tax. Each retail marijuana cultivation facility shall collect,
remit and pay the tax imposed in subsection 14-13-3(a) on the first sale or transfer
of unprocessed retail marijuana.
(b) Sales Tax. Each retail marijuana store shall collect, remit and pay
the tax imposed in subsection 14-13-3(b) on every sale of retail marijuana or retail
marijuana products.
(c) The burden of proving that any transaction is not subject to the
taxes imposed by this chapter shall be upon the person upon whom the duty to
collect the taxes is imposed.
Sec. 14-13-5. Taxes Collected are Held in Trust.
All sums of money paid by a person as the additional excise or sales tax on
retail marijuana imposed by this Chapter are public monies that are the property
of the City. The person required to collect and remit the additional retail
marijuana excise tax or sales tax shall hold such monies in trust for the sole use
and benefit of the City until paying them to the Finance Director.
Sec. 14-13-6. 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 retail marijuana tax liability of
such person from the best information reasonably available to him or her.
(b) Every person required to collect retail marijuana taxes 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 retail marijuana taxes 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 retail marijuana taxes
were collected.
(c) Persons collecting retail marijuana taxes may either add the tax to
the retail marijuana charge as a separate and distinct item or may add the retail
marijuana tax to the sales tax without separately identifying it as a retail marijuana
tax, but no person shall represent directly or indirectly that the tax will be
assumed, absorbed or refunded, and addition of the retail marijuana tax to the
sales tax shall not relieve any person collecting the tax from liability for payment
of the full amount of the taxes levied hereunder.
Sec. 14-13-7. Penalty and interest for failure to collect or remit tax.
(a) A taxpayer who fails to collect or remit any retail marijuana taxes
shall be personally liable to the City for the amount of the tax and all interest and
additional amounts imposed under this Chapter.
(b) A taxpayer who fails to pay the full amount of the retail marijuana
taxes 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 additional amounts 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 additional amounts 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. 14-13-8. Licenses to be obtained.
In addition to all other permits or licenses which may be required by law,
every person required to collect or remit retail marijuana taxes hereunder shall
obtain a sales and use tax license from the Director of Finance. The issuance of
such license does not authorize, and shall not be construed to authorize, the sale
of retail marijuana by any person. Each application for a 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.
Sec. 14-13-9. 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 retail marijuana taxes. 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. 14-13-10. 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 13 by
reference as if fully set forth herein, except that any reference therein to sales tax
shall be deemed to refer to retail marijuana sales tax. All procedural and
enforcement powers and remedies conferred in said Chapter 4 of this Title 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. 14-13-11. 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. 14-13-12. 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 remedies or penalties provided herein.
Sec. 14-13-13. Maximum rate for retail marijuana excise tax.
The maximum retail marijuana excise tax rate that may be imposed
pursuant to this Chapter is fifteen (15) percent. At any time on or after January 1,
2015, the City may, by Ordinance:
(a) Establish another retail marijuana excise tax rate to be
imposed pursuant to this Chapter that is equal to or less than the maximum
fifteen (15) percent tax rate provided in this Chapter; or
(b) After establishing a retail marijuana excise tax rate that is
lower than fifteen (15) percent, increase the tax rate to be imposed
pursuant to this Section; except that, in no event shall the City increase the
retail marijuana excise tax rate above fifteen (15) percent.
Sec. 14-13-14. Maximum rate for retail marijuana sales tax.
The maximum retail marijuana sales tax rate that may be imposed pursuant
to this Chapter is fifteen (15) percent. At any time on or after January 1, 2015, the
City may, by Ordinance:
(a) Establish another retail marijuana sales tax rate to be
imposed pursuant to this Chapter that is equal to or less than the maximum
fifteen (15) percent tax rate provided in this Chapter; or
(b) After establishing a retail marijuana sales tax rate that is
lower than fifteen (15) percent, increase the tax rate to be imposed
pursuant to this Section; except that, in no event shall the City increase the
retail marijuana sales tax rate above fifteen (15) percent.
Sec. 14-13-15. Exclusion of medical marijuana.
Nothing in this Chapter shall be construed to impose a tax on the sale of
medical marijuana or medical marijuana products to any person by a medical
marijuana center licensed by the Colorado Department of Revenue to sell medical
marijuana and medical marijuana-infused products pursuant to the Colorado
Medical Marijuana Code, Article 43.3 of Title 12, C.R.S., and licensed by the City
pursuant to Section 11-10-101 et seq. of the Pueblo Municipal Code. Taxes owed
on the sale of medical marijuana or medical marijuana products are governed by
Chapter 11 of this Title. To the extent any retail marijuana store exists at the same
location and under common ownership with a licensed medical marijuana center,
the retail store shall strictly segregate and account for sales of retail marijuana
distinct from medical marijuana in accordance with all applicable state and city
laws and regulations governing collocation of retail marijuana stores and medical
marijuana facilities.
Sec. 14-13-16. Revenue and spending limitations.
Notwithstanding any limitations on revenue, spending, or appropriations
contained in Section 20 of Article X of the Colorado Constitution or any other
provision of law, any revenues generated by the retail marijuana taxes imposed
pursuant to this Chapter, may be collected, retained and spent as a voter-
approved revenue change and shall not require further voter approval to modify
the tax rates as provided in this Chapter or to collect, retain and spend any
revenue derived from the modified tax rates.
Sec. 14-13-17. 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 4, 2014. The tax levies of this Chapter shall take effect beginning January
1, 2015.
SECTION 3.
The officers and staff of the City are authorized and directed to take all action necessary,
appropriate or required to effectuate the provisions of this Ordinance.
SECTION 4.
This Ordinance shall become effective upon final passage and approval.
Did not Pass
For the Ordinance 16,971
Against the Ordinance 18,594