Chapter 3.16
RETAIL MARIJUANA EXCISE TAX
Sections:
3.16.010 Purpose and legislative intent.
3.16.030 Imposition and rate of tax.
3.16.040 Vendor liable for tax.
3.16.050 Taxes collected held in trust.
3.16.060 Licensing and reporting.
3.16.070 Duties and powers of the Finance Director.
3.16.010 Purpose and legislative intent.
The City Council intends that an excise tax be imposed on the first sale or transfer of unprocessed retail marijuana by a retail cultivation facility within the City. Revenue derived through the retail marijuana excise tax shall be used for the enforcement of regulations on the regulated marijuana industry and other costs related to the implementation of the use and regulation of regulated marijuana and lawful utilization of marijuana, the building, operating and maintenance of the highest priorities of the adopted Parks and Recreation Open Space Plan which includes indoor and outdoor recreating and park facilities, capital improvements and enhancements to the City’s parks, trails and open space, public safety, enforcement and administrative purposes and for comprehensive substance abuse programs including, without limitation, prevention, treatment, education, responsible use, intervention, and monitoring of unlawful consumption of marijuana all as approved by voters in April 2019 with the passage of Ballot Measure 2A.
(Ord. 5065, 4-6-22)
3.16.020 Definitions.
As used in this chapter, average market rate means the amount determined by the State pursuant to § 39-28.8-101(1), C.R.S., as the average price of unprocessed retail marijuana that is sold or transferred from a retail marijuana cultivation facility to a retail marijuana store or retail marijuana products manufacturer. All other terms in this chapter shall have the same meaning as set forth in Chapter 5.13 GJMC.
(Ord. 5065, 4-6-22)
3.16.030 Imposition and rate of tax.
There is hereby levied an excise tax of five percent upon the average market rate of unprocessed retail marijuana that is sold or transferred from a retail marijuana cultivation facility to a retail marijuana store or retail marijuana products manufacturer.
(Ord. 5065, 4-6-22)
3.16.040 Vendor liable for tax.
Each retail marijuana cultivation facility shall collect the tax imposed in GJMC 3.16.030 upon every sale or transfer of unprocessed retail marijuana from the cultivation facility. The person charged with the duty to collect taxes also has the burden of proving that any transaction is not subject to the tax imposed by this chapter.
(Ord. 5065, 4-6-22)
3.16.050 Taxes collected held in trust.
All sums of money paid by any person or facility to a cultivation facility as excise taxes pursuant to this chapter are public monies that are the property of the City. The person required to collect and remit retail marijuana excise taxes shall hold such monies in trust for the sole use and benefit of the City until paying them to the Finance Director.
(Ord. 5065, 4-6-22)
3.16.060 Licensing and reporting.
(a) Every person with a duty to collect the excise tax imposed by this chapter shall obtain a tax license pursuant to Chapter 5.13 GJMC, report such taxes collected on forms and remit such taxes to the City as prescribed by the Finance Director. A tax license shall be valid so long as:
(1) The business remains in continuous operation;
(2) The license is not canceled by the licensee or revoked by the City; and
(3) The business holds a valid retail marijuana license from the City pursuant to Chapter 5.13 GJMC.
(b) The tax license may be canceled or revoked by the City as provided in GJMC 3.12.250.
(c) Whenever a business entity that is required to be licensed under this chapter is sold, purchased or transferred, so that the ownership interest of the purchaser or seller changes in any respect, the purchaser shall obtain a new tax license.
(d) Every person engaged in the retail marijuana cultivation business in the City shall keep books and records according to the standards of the Finance Director and subject to the Finance Director’s right to audit set forth in GJMC 3.12.270.
(e) The provisions set forth in GJMC 3.12.260, 3.12.270, 3.12.290, 3.12.300 and 3.12.330 through 3.12.580 shall all apply to retail marijuana excise taxation by the City.
(Ord. 5065, 4-6-22)
3.16.070 Duties and powers of the Finance Director.
The Finance Director is authorized to administer the provisions of this chapter.
(Ord. 5065, 4-6-22)
3.16.080 Prohibited acts.
It is unlawful and a violation of this code for any retail marijuana business to sell or transfer unprocessed retail marijuana without the tax license required by this chapter, the retail marijuana license required by Chapter 5.13 GJMC and any other license(s) required by law, to willfully make any false or fraudulent return or false statement on any return, or to willfully evade the payment of the tax, or any part thereof, as imposed by this chapter.
(Ord. 5065, 4-6-22)