City Council

11. Cannabis Industry Analysis Report and Recommendations 197 - 201\nDoria Wilms, City Manager\nRecommendation:\n1) Direct staff to bring forth an Ordinance to permanently modify the\ndefinition of cultivation space, for the purposes of tax collection, to\nencompass “canopy space” vs. the city’s current methodology of\ntaxing the full square footage of “space utilized” in connection with\nthe cultivation process;\n2) Direct staff to bring forth an Ordinance to permanently reduce the\ncannabis cultivation tax rate from $10.20 per sq. ft. of “space utilized”\nin connection with the cultivation process to $7.50 per sq. ft. of\ncanopy space;\n3) Direct staff to bring forth an Ordinance to align the city’s security\nrequirements to mirror state law for cultivation, manufacturing, and\ndistribution facilities; and\n4) Direct staff to bring forth an Ordinance to allow for a 6-month ramp-\nup period for new businesses to phase in canopy space, for the\npurpose of calculating tax liability, as new rooms are brought online\nwithin a facility.\nStaff Report - SR-23-176 - Pdf