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HomeMy WebLinkAbout09008 ORDINANCE NO. 9008 AN ORDINANCE AMENDING CHAPTER 13 OF TITLE XIV OF THE PUEBLO MUNICIPAL CODE BY THE ADDITION OF A NEW SECTION THERETO IMPOSING AN ADDITIONAL SALES AND USE TAX ON THE SALE OF RETAIL MARIJUANA AND RETAIL MARIJUANA PRODUCTS 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 hereby amended by the addition of a new Chapter 13 to read as follows: CHAPTER 13 Retail Marijuana Sales Tax Sec. 14-13-1. Definitions. The following definitions shall apply to the words and phrases used in this Chapter: (1) means 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. (2) 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. Retail marijuana does not include the sale of medical marijuana to any person by a medical marijuana center. (3) means concentrated retail marijuana Retail marijuana products 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. Retail marijuana products does not include the sale of medical marijuana products to any person by a medical marijuana center. (4)means the sales tax imposed by this Retail marijuana sales tax Chapter. Sec. 14-13-2. Imposition and Rate of Tax; Collection and Trust Status. Retail Marijuana 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 upon all sales of retail marijuana and retail marijuana products in the amount of four and three-tenths percent (4.3%) of the full purchase price paid or charged. Any person who sells marijuana or any marijuana product to a consumer shall collect the retail marijuana sales tax from the person paying for the retail marijuana or retail marijuana product 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 sole use and benefit of the City, until it is remitted to the Director of Finance as herein provided. Sec. 14-13-3. Licensing and Reporting. (a) Every person required to collect the retail marijuana sales 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 retail 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. (b) Every person required to collect the retail marijuana sales tax hereunder shall be liable and responsible for the payment of an amount equivalent to the rate of tax imposed by this Chapter on all sales made by him or her of retail marijuana or retail marijuana products and shall, before the twentieth day of each month, make a return to the Director of Finance for the preceding calendar month and remit an amount equivalent to the rate of tax imposed by this Chapter on such sales to the Director of Finance. (c) 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 sales tax liability of such person from the best information reasonably available to him or her. Sec. 14-13-4. Administration and enforcement. The retail marijuana sales tax imposed pursuant to this Chapter shall be administered and enforced in accordance with the provisions of Chapter 4 of this Title which provisions are made applicable to this Chapter, including, without limitation, any interest and penalty for failure to make any return or to collect or pay any tax; except that, in the event of a conflict between the provisions of this Chapter and the provisions of Chapter 4 of this Title, the provisions of this Chapter shall control, including without limitation, those provisions of Chapter 4 providing for exemption from sales and use tax which are inapplicable to this Chapter. 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 tax is imposed. Sec. 14-13-5. 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 sales 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. 14-13-6. Criminal penalties for violation. (a) It is unlawful and a municipal offense for any person to sell or offer for sale any retail marijuana or retail marijuana product without a license as required by law including the sales and use tax license required by this Chapter. (b) It is unlawful and a municipal offense for any person to fail or refuse to make any return provided to be made in this Chapter, to make any false or fraudulent return or any false statement in any return, to fail or refuse to make payment to the Director of Finance of any taxes collected or due the City, or in any manner to evade the collection and payment of the tax of any part thereof imposed by this Chapter. (c) It is unlawful and a municipal offense for any person or purchaser to fail or refuse to pay the tax imposed by this Chapter or evade the payment thereof, or to aid or abet another in any attempt to evade the payment of the tax imposed by this Chapter. (d) It is unlawful and a municipal offense for any person to violate any provision of this Chapter. (e) 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 which may otherwise be applicable. Sec. 14-13-7. 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, 2017, 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. 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 8, 2016. The tax levies of this Chapter shall take effect beginning January 1, 2017. FOR THE ORDINANCE 20,599 AGAINST THE ORDINANCE 26,658