HomeMy WebLinkAbout10622ORDINANCE NO. 10622
AN ORDINANCE AMENDING SECTION 14-12-8 OF THE
PUEBLO MUNICIPAL CODE RELATING TO RETAIL
MARIJUANA EXCISE TAX RATE AND EFFECTIVE JANUARY 1,
2024 DECREASING SAID RATE OF TAX TO ZERO FOR A
PERIOD OF THREE YEARS
BE IT ORDAINED BY THE CITY COUNCIL OF PUEBLO, that:
SECTION 1.
Section 14-12-8 of the Pueblo Municipal Court is amended to read as follows:
Sec. 14-12-8. Maximum rate for retail marijuana excise tax.
The maximum retail marijuana excise tax rate that may be imposed pursuant to this Chapter is
fifteen percent (15%). At any time on or after January 1, 2016, 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 percent (15%) tax rate provided in this Chapter;
or
(b) After establishing a retail marijuana excise tax rate that is lower than fifteen percent
(15%), 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 percent (15%).
(c) On and after January 1, 2024 and for a period of three years thereafter, the retail
marijuana excise tax rate shall be decreased to zero percent (0%). Unless this subsection
(c) is sooner repealed, rescinded or otherwise amended, the retail marijuana excise tax
rate shall be increased to eight percent (8%) and imposed effective on and after January
1, 2027.
SECTION 2.
The officers and staff of the City are authorized and directed to perform any and all acts
consistent with the intent of this Ordinance to effectuate the policies and procedures described
herein.
SECTION 3.
This Ordinance shall become effective on the date of final action by the Mayor and City
Council.
Action by City Council:
Introduced and initial adoption of Ordinance by City Council on December 11, 2023.
Final adoption of Ordinance by City Council on December 26, 2023.
President of City Council
Action by the Mayor:
☒ Approved on December 29, 2023 .
□ Disapproved on based on the following objections:
Mayor
Action by City Council After Disapproval by the Mayor:
□ Council did not act to override the Mayor's veto.
□ Ordinance re-adopted on a vote of , on
□ Council action on _______ failed to override the Mayor’s veto.
President of City Council
ATTEST
Deputy City Clerk
City Clerk's Office Item # R4
Background Paper for Proposed
Ordinance
COUNCIL MEETING DATE: December 26, 2023
TO: President Heather Graham and Members of City Council
CC: Mayor Nicholas A. Gradisar
VIA: Marisa Stoller, City Clerk
FROM: Vicente Martinez Ortega, Councilor Martinez
SUBJECT: AN ORDINANCE AMENDING SECTION 14-12-8 OF THE PUEBLO
MUNICIPAL CODE RELATING TO RETAIL MARIJUANA EXCISE TAX
RATE AND EFFECTIVE JANUARY 1, 2024 DECREASING SAID RATE
OF TAX TO ZERO FOR A PERIOD OF THREE YEARS
SUMMARY:
The proposed Ordinance decreases the retail marijuana excise tax rate from 8% to 0%
for a period of three years.
PREVIOUS COUNCIL ACTION:
Voters approved Ordinance 8905 at the 2015 General Municipal Election which
enacted Chapter 12 of Title XIV (“Retail Marijuana Excise Tax Ordinance”). The
Ordinance allows Council to set the excise tax as long as it does not exceed 15%.
BACKGROUND:
The retail marijuana industry has undergone significant change since it became legal
and many more states have legalized retail marijuana. Imposing an excise tax on the
first sale of marijuana grown in the City of Pueblo has adversely affected the marijuana
industry and very little marijuana is being grown in the City. While there were
previously many jobs associated with growing and harvesting marijuana, there are now
very few. Suspending the retail marijuana excise tax will (a) enhance the economic
development of the City of Pueblo by increasing the competitiveness of existing
businesses located in the City as compared to similar businesses located in other
jurisdictions and by attracting new businesses to the City of Pueblo; and (b) will create
new jobs for Puebloans.
FINANCIAL IMPLICATIONS:
Retail marijuana excise tax revenues in 2022 were $159,601.
BOARD/COMMISSION RECOMMENDATION:
Not applicable to this Ordinance.
STAKEHOLDER PROCESS:
Not applicable to this Ordinance.
ALTERNATIVES:
Not approve the Ordinance in which case the retail marijuana excise tax rate shall
remain at 8%.
RECOMMENDATION:
Passage of this Ordinance.
ATTACHMENTS:
None