TITLE
Recommendation to adopt resolution Version A or Version B regarding a proposed ballot measure to be placed on the April 8, 2014 ballot for the purpose of submitting to the voters of the City of Long Beach an ordinance amending Chapter 3.80 of the Long Beach Municipal Code, relating to Marijuana Business License General tax; and request the Office of the Mayor to designate persons, or associations of persons, to write arguments either for or against or both for and against the adoption of the measure placed on the ballot. (Citywide)
DISCUSSION
On December 17, 2013, the City Council requested this Office to prepare the documents necessary to place a proposed measure on the April 8, 2014 ballot to tax medical marijuana businesses in the City of Long Beach. At the December 17, 2013 Council meeting, the City Council requested that the proposed ordinance include options from which the Council could choose.
This Office therefore prepared and now transmits the ballot resolution, to which are attached two alternative ballot ordinances: Version A, which presents a tax rate of 6% ($60 per $1000 of gross receipts), with an annual CPI adjustment; or Version B, which presents a tax rate not to exceed 10% ($100 per $1000 of gross receipts), with an initial rate of 6%, with an annual CPI adjustment.
Taxation Rate
Voter approval is required for all new or increased taxes, under Proposition 218. The adoption of a "general" tax must usually be considered on a ballot where one or more of the local legislators is up for election or reelection. A general tax must be adopted by a simple majority of voters, and revenue obtained from such a tax belongs to the City's general fund. A "special" tax, by contrast, must be approved by a two-thirds majority of voters and may be earmarked for a special purpose fund. Both of the options here are for a general tax.
Amendment to LBMC Chapter 3.80
The proposed amendment would impose a tax on gross receipts earned by a medical mar...
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