HomeMy WebLinkAboutOrdinance 1992ORDINANCE NO.�a
AN ORDINANCE ESTABLISHING CENTRAL POINT
MUNICIPAL CODE CHAPTER 3.30 MARIJUANA AND
MARIJUANA -INFUSED PRODUCT TAX
Recitals:
A. Words lined threugh are to be deleted and words in bold are added.
B. Section 4 of the Central Point Charier provides:
Powers of the City. The City shall have all powers which the constitutions, statutes and
common law of the United States and of this state expressly or impliedly grant or allow
municipalities, as fully as though this charter specifically enumerated each of those
powers.
C. the City desires to tax the sale or transfer of marijuana and marijuana -infused
products within the City.
THE PEOPLE OF THE CITY OF CENTRAL POINT DO ORDAIN AS FOLLOWS:
SECTION 1. Title 3 Revenue and Finance of the Central Point Municipal Code hereby adds
a new Chapter 3.30, establishing a tax on the sale of marijuana and marijuana -infused
products, as follows:
CHAPTER 3.30 MARIJUANA AND
MARIJUANA INFUSED PRODUCT TAX
Sections:
3.30.010 Purpose
3.30.020 Definitions
3.30.030 Levy of Tax
3.30.040 Deductions
3.30.050 Seller Responsible for Payment of Tax
3.30.060 Penalties and Interest
3.30.070 Failure to Report and Remit Tax — Determination of Tax
3.30.080 Appeal
3.30.090 Refunds
3.30.100 Actions to Collect
3.30.110 Confidentiality
3.30.120 Audit of Books, Records or Persons
3.30.130 Penalties
3.30.140 Forms and Regulations
Ordinance No. l qq Z (072414)
3.30.010 Purpose.
For the purposes of this Chapter, every person who sells marijuana, medical
marijuana or marijuana -infused products in the City of Central Point is exercising
a taxable privilege. The purpose of this Chapter is to impose a tax upon the
retail sale of marijuana, medical marijuana, and marijuana -infused products.
3.30.020 Definitions.
When not clearly otherwise indicated by the context, the following words and
phrases as used in this chapter shall have the following meanings:
1. "Director" means the Director of Finance for the City of Central Point or
his/her designee.
2. "Gross Taxable Sales" means the total amount received in money, credits,
property or other consideration from sales of marijuana, medical marijuana
and marijuana -infused products that is subject to the tax imposed by this
chapter.
3. "Marijuana" means all parts of the plant of the Cannabis family
Moraceae, whether growing or not; the resin extracted from any part of
the plant; and every compound, manufacture, salt, derivative, mixture, or
preparation of the plant or its resin, as may be defined by Oregon Revised
Statutes as they currently exist or may from time to time be amended. It
does not include the mature stalks of the plant, fiber produced from the
stalks, oil or cake made from the seeds of the plant, any other compound,
manufacture, salt, derivative, mixture, or preparation of the mature stalks
(except the resin extracted there from), fiber, oil, or cake, or the sterilized
seed of the plant which is incapable of germination.
4. "Oregon Medical Marijuana Program" means the office within the
Oregon Health authority that administers the provisions of ORS 475.300
through 475.346, the Oregon Medical Marijuana Act, and all policies and
procedures pertaining thereto.
5. "Person" means natural person, joint venture, joint stock company,
partnership, association, club, company, corporation, business, trust,
organization, or any group or combination acting as a unit, including the
United States of America, the State of Oregon and any political subdivision
thereof, or the manager, lessee, agent, servant, officer or employee of any of
them.
6. "Purchase or Sale" means the acquisition or furnishing for consideration by
any person of marijuana within the City.
7. "Purchaser" means any person who acquires marijuana from a seller for any
valuable consideration.
S. "Registry identification cardholder" means a person who has been
diagnosed by an attending physician with a debilitating medical condition
and for whom the use of medical marijuana may mitigate the symptoms
or effects of the person's debilitating medical condition, and who has been
issued a registry identification card by the Oregon Health Authority.
Ordinance No. / Z (072414)
9. "Retail sale" means the transfer of goods or services in exchange for any
valuable consideration.
10. "Seller" means any person who is required to be licensed or has been
licensed by the State of Oregon to provide marijuana or marijuana -infused
products to purchasers for money, credit, property or other consideration.
11. "Tax" means either the tax payable by the seller or the aggregate amount
of taxes due from a seller during the period for which the seller is required to
report collections under this chapter.
12. "Taxpayer" means any person obligated to account to the Finance
Director for taxes collected or to be collected, or from whom a tax is due,
under the terms of this chapter.
3.30.030 Levy of Tax.
A. There is hereby levied and shall be paid a tax by every seller exercising the
taxable privilege of selling marijuana and marijuana -infused products as defined in
this chapter.
B. The amount of tax levied is as follows:
1) Five percent (5%) of the gross sale amount paid to the seller by
a registry identification cardholder.
2) Ten percent (10%) of the gross sale amount paid to the seller of
marijuana and marijuana -infused products by individuals who are not
purchasing marijuana under the Oregon Medical Marijuana Program.
C. The purchaser shall pay the tax to the seller at the time of the purchase or sale of
marijuana.
3.30.040 Deductions.
The following deductions shall be allowed against sales received by the seller
providing marijuana:
A. Refunds of sales actually returned to any purchaser;
B. Any adjustments in sales which amount to a refund to a purchaser, providing
such adjustment pertains to the actual sale of marijuana or marijuana -infused
products and does not include any adjustments for other services furnished by a
seller.
3.30.050 Seller Responsible For Payment Of Tax.
A.Every seller shall, on or before the fifteenth (15'h) day of the month following
the end of each calendar quarter (in the months of April, July, October and
January) make a return to the Director, on forms provided by the City,
specifying the total sales subject to this chapter and the amount of tax collected
under this chapter. The seller may request or the Director may establish shorter
reporting periods for any seller if the seller or Director deems it necessary in
order to ensure collection of the tax and the Director may require further
information in the return relevant to payment of the tax. A return shall not be
considered filed until it is actually received by the Director. The quarters are:
Ordinance No.199Z (072414)
First quarter: January, February, March
Second quarter: April, May, June
Third quarter: July, August, September
Fourth quarter: October, November, December
B. At the time the return is filed, the full amount of the tax collected shall be remitted
to the Director. Payments received by the Director for application against
existing liabilities will be credited toward the period designated by the taxpayer
under conditions that are not prejudicial to the interest of the City. A
condition considered prejudicial is the imminent expiration of the statute of
limitations for a period or periods.
C. Non -designated payments shall be applied in the order of the oldest liability first,
with the payment credited first toward any accrued penalty, then to interest, then
to the underlying tax until the payment is exhausted. Crediting of a payment
toward a specific reporting period will be first applied against any accrued
penalty, then to interest, then to the underlying tax. If the Director, in his or her
sole discretion, determines that an alternative order of payment application would
be in the best interest of the City in a particular tax or factual situation, the
Director may order such a change. The Director may establish shorter
reporting periods for any seller if the Director deems it necessary in order to
ensure collection of the tax. The Director also may require additional
information in the return relevant to payment of the liability. When a shorter
return period is required, penalties and interest shall be computed according to
the shorter return period. Returns and payments are due immediately upon
cessation of business for any reason. All taxes collected by sellers pursuant to
this chapter shall be held in trust for the account of the City until payment is
made to the Director. A separate trust bank account is not required in order to
comply with this provision.
D. For good cause, the Director may extend the time for filing a return or paying the
tax for not more than one month. Further extension may be granted only by the
city council. A seller to whom an extension is granted shall pay interest at the rate
of one percent per month on the amount of tax due, without proration for a
fraction of a month. If a return is not filed and if the tax and interest due are not
paid by the end of the extension granted, the interest shall become a part of the tax
for computation of penalties prescribed in Section 3.30.060.
E. Every seller required to remit the tax imposed in this chapter shall be entitled to
retain five percent (S%) of all taxes due to defray the costs of bookkeeping and
remittance.
F. Every seller must keep and preserve in an accounting format established by the
Director records of all sales made by the dispensary and such other books or
accounts as may be required by the Director. Every seller must keep and
Ordinance No. (072414)
preserve for a period of three (3) years all such books, invoices and other
records. The Director shall have the right to inspect all such records at all
reasonable times.
3.30.060 Penalties And Interest.
A. Any seller who fails to remit any portion of any tax imposed by this chapter
within the time required shall pay a penalty of ten percent (10%) of the
amount of the tax.
B. Any seller who fails to remit any delinquent remittance on or before a period of
60 days following the date on which the remittance first became delinquent, shall
pay a second delinquency penalty of fifteen percent (15%) of the amount of the
tax in addition to the amount of the tax and the penalty first imposed.
C. If the Director determines that the nonpayment of any remittance due under this
chapter is due to fraud, a penalty of twenty-five percent (2.5"/x) of the amount of
the tax shall be added thereto in addition to the penalties stated in subparagraphs
A and B of this section.
D. In addition to the penalties imposed, any seller who fails to remit any tax imposed
by this chapter shall pay interest at the rate of one percent (1%) per month or
fraction thereof on the amount of the tax, exclusive of penalties, from the date on
which the remittance first became delinquent until paid.
E. Every penalty imposed, and such interest as accrues under the provisions of this
section, shall become a part of the tax required to be paid.
F. A seller who fails to remit the tax within the required time may petition the city
council for waiver and refund of the penalty or a portion of it. The council may, if
good cause is shown, direct a refund of the penalty or a portion of it. Any such
hearing will be conducted under the procedures described in section 3.30.080.
3.30.070 Failure To Report and Remit Tax —Determination of Tax by Director.
If any seller should fail to make, within the time provided in this chapter, any
report of the tax required by this chapter, the Director shall proceed in such
manner as deemed best to obtain facts and information on which to base the estimate
of tax due. As soon as the Director shall procure such facts and information as is
able to be obtained, upon which to base the assessment of any tax imposed by this
chapter and payable by any seller, the Director shall proceed to determine and
assess against such seller the tax, interest and penalties provided for by this chapter.
In case such determination is made, the Director shall give a notice of the amount so
assessed by having it served personally or by depositing it in the United States
mail, postage prepaid, addressed to the seller so assessed at the last known place of
address. Such seller may appeal such determination as provided in section 3.30.080.
If no appeal is filed, the Director's determination is final and the amount thereby is
immediately due and payable.
Ordinance No. 14 a z (072414)
3.30.080 Anneal.
A.Any seller aggrieved by any decision of the Director with respect to the amount of
such tax, interest and penalties, if any, may appeal to the city council by filing a
notice of appeal with the Director within fifteen (15) days of mailing of the notice of
a decision. The city manager shall fix a time and place for hearing the appeal, as
prescribed by the city council, and shall give the appellant fifteen days written
notice of the time and place of the hearing before the city council.
B. The appellant shall pay a nonrefundable appeal fee to facilitate the appeal. Appeal
Fees shall be set at $150 for each decision appealed, and may be adjusted by
Resolution of the city council.
C. The parties shall be entitled to appear personally and by counsel and to present such
facts, evidence and arguments as may tend to support the respective positions on
appeal.
D. The city council shall afford the parties an opportunity to be heard at an appeal
hearing after reasonable notice. The city council shall take such action upon the
appeal it sees fit. The city council shall at a minimum:
1) At the commencement of the hearing, explain the relevant issues involved in the
hearing, applicable procedures and the burden of proof.
2) At the commencement of the hearing place on the record the substance of any
written or oral ex parte communications concerning any relevant and material fact
in issue at the hearing which was made outside the official proceedings during the
pendency of the proceeding. The parties shall be notified of the substance of the
communication and the right to rebut the communication. Notwithstanding the
above, the parties are prohibited from engaging in ex parte communications with
the members of the city council.
3) Testimony shall be taken upon oath or affirmation of the witnesses.
4) The city council shall ensure that the record developed at the hearing shows a full
and fair inquiry into the relevant and material facts for consideration for the issues
properly before the hearings officer.
5) Written testimony may be submitted under penalty of false swearing for entry
into the record. All written evidence shall be filed with the City recorder no less
than (5) five working days before the date of the hearing.
6) The city council shall hear and consider any records and evidence presented
bearing upon the Director's determination of amount due, and make findings
affirming, reversing or modifying the determination.
Ordinance No, J J JZ__ (072414)
7) Informal disposition may be made of any case by stipulation, agreed settlement,
consent order or default.
F. The action of the Director shall be stayed pending the outcome of an appeal properly
riled pursuant to this section.
G. Failure to strictly comply with the applicable appeal requirements, including but not
limited to the required elements for the written notice of appeal, time for filing of
the notice of appeal, and payment of the applicable appeal fee, shall constitute
jurisdictional defects resulting in the summary dismissal of the appeal.
H. The findings of the city council shall be final and conclusive, and shall be served
upon the appellant in the manner prescribed above for service of notice of
hearing. Any amount found to be due shall be immediately due and payable
upon the service of notice.
3.30.090. Refunds.
A. Whenever the amount of any tax, interest or penalty has been overpaid or paid
more than once, or has been erroneously collected or received by the City under this
chapter, it may be refunded as provided in subparagraph B of this section, provided
a claim in writing, stating under penalty of perjury the specific grounds upon which
the claim is founded, is filed with the Director within one year of the date of
payment. The claim shall be on forms furnished by the Director.
1.The Director shall have 20 calendar days from the date of receipt of a claim to
review the claim and make a determination in writing as to the validity of the
claim. The Director shall notify the claimant in writing of the Director's
determination. Such notice shall be mailed to the address provided by
claimant on the claim form. In the event aclaim is determined by the Director
to be a valid claim, in a manner prescribed by the Director a seller may claim
a refund, or take as credit against taxes collected and remitted, the amount
overpaid, paid more than once or erroneously collected or received. The seller
shall notify the Director of claimant's choice no later than 15 days
following the date Director mailed the determination. In the event claimant
has not notified the Director of claimant's choice within the 15 day period and
the seller is still in business, a credit will be granted against the tax liability for
the next reporting period. If the seller is no longer in business, a refund check
will be mailed to claimant at the address provided in the claim form.
2.No refund shall be paid under the provisions of this section unless the
claimant established the right by written records showing entitlement to such
refund and the Director acknowledged the validity of the claim.
3.30.100 Actions to Collect.
Any tax required to be paid by any seller under the provisions of this chapter shall be
deemed a debt owed by the seller to the City. Any such tax collected by a seller
Ordinance No. If9Z (072414)
which has not been paid to the City shall be deemed a debt owed by the seller to
the City. Within three years after the tax becomes payable or within three years after
a determination becomes final, the City may bring an action in the name of the city in
the courts of this state, another state or the United States to collect the amount
delinquent and penalties and interest. In lieu of filing an action for the recovery, the
City, when taxes due are more than 30 days delinquent, can submit any outstanding
tax to a collection agency. So long as the City has complied with the provisions
set forth in ORS 697.105 (as hereafter amended), in the event the City turns over a
delinquent tax account to a collection agency, it may add to the amount owing an
amount equal to the collection agency fees, not to exceed the greater of fifty dollars
($50.00) or fifty percent (50%) of the outstanding tax, penalties and interest owing.
3.30.120 Confidentiality.
Except as otherwise required by law, it shall be unlawful for the City, any officer,
employee or agent to divulge, release or make known in any manner any
financial information submitted or disclosed to the City under the terms of this
chapter. Nothing in this section shall prohibit:
A.The disclosure of the names and addresses of any person who is operating a
licensed establishment from which marijuana is sold or provided; or
B.The disclosure of general statistics in a form which would not reveal an
individual seller's financial information; or
C.Presentation of evidence to the court, or other tribunal having jurisdiction
in the prosecution of any criminal or civil claim by the Director or an appeal
from the Director for amount due the City under this chapter; or
D. The disclosure of information when such disclosure of conditionally exempt
information is ordered under public records law procedures; or
E. The disclosure of records related to a business' failure to report and remit the
tax when the report or tax is in arrears for over six months or the tax exceeds five
thousand dollars ($5,000). The City Council expressly finds and determines that
the public interest in disclosure of such records clearly outweighs the interest in
confidentiality under ORS 192.501(5).
3.30.130 Audit of Books. Records or Persons.
A. It shall be the duty of every seller liable for the collection and payment to the city of
any tax imposed by this chapter to keep and preserve, for a period of three years
and six months, all records, books, reports, income tax reports and other matters
required by this chapter as may be necessary to determine the amount of such tax
as the seller may have been liable for the collection of and payment to the City,
which records the Director shall have the right to inspect at all reasonable times as
set forth below. Every operator shall maintain records of marijuana purchase and
sales, accounting books and records of income. Sellers must, at a minimum, include
a cash receipt and deposit journal, and a cash disbursements journal/check register
Ordinance No. M2 (072414)
for all authorized deductions. These records and books shall reconcile to the tax
reports and be auditable. They shall also reconcile to the seller's income tax reports.
If the Director finds the books and records of the seller are deficient in that they do
not provide adequate support for tax reports filed, or the seller's accounting system
is not auditable, it shall be the responsibility of the seller to improve its accounting
system to the satisfaction of the Director.
B. The City, for the purpose of determining the correctness of any tax return, or for
the purpose of an estimate of taxes due, may examine or may cause to be
examined by an agent or representative designated by the City for that
purpose, any books, papers, records, or memoranda, including copies of seller's
state and federal income tax return, bearing upon the matter of the seller's tax
return. All books, invoices, accounts and other records shall be made available
within the City limits and be open at any time during regular business hours for
examination by the Director or an authorized agent of the Director. If any
taxpayer refuses to voluntarily furnish any of the foregoing information when
requested, the Director may immediately seek a subpoena from the Central
Point Municipal Court to require that the taxpayer or a representative of the
taxpayer attend a hearing or produce any such books, accounts and records for
examination.
3.30.110 Penalties.
A.It is unlawful for any seller or any other person so required to fail or refuse to
furnish any return required to be made, or fail or refuse to furnish the
supplementary return or other data required by the Director or to enter a false or
fraudulent report, with intent to defeat or evade the determination of any amount
due required by this chapter.
B. Violation of any provision of this chapter of this code shall be punishable by the
general penalty. Every day in which the violation is caused or permitted to exist
constitutes a separate infraction, and the punishment therefor shall be in addition
to any other penalty, interest, sum or charge imposed by this code or this chapter.
Delinquent taxes and fees, penalty and interest imposed by this chapter and this
code may be collected in a civil action.
C. The remedies provided by this section are not exclusive and shall not prevent
the City from exercising any other remedy available under the law, nor shall the
provisions of this ordinance prohibit or restrict the City or other appropriate
prosecutor from pursuing criminal charges under state law or City ordinance.
3.30.140 Forms And Regulations,
A. The Director is hereby authorized to prescribe forms and promulgate
rules and regulations to aid in the making of returns, the ascertainment, assessment
and collection of said medical marijuana tax and in particular and without limiting
the general language of this chapter, to provide for:
1) A form of report on sales and purchases to be supplied to all vendors;
Ordinance No. I 1 g z (072414)
2) The records which sellers providing marijuana and marijuana -infused products
are to keep concerning the tax imposed by this chapter.
SECTION 2. Severability. The sections, subsections, paragraphs and clauses of this ordinance
are severable. The invalidity of one section, subsection, paragraph, or clause shall not affect the
validity of the remaining sections, subsections, paragraphs and clauses.
SECTION 3. Savings. Notwithstanding any amendment/repeal, the City ordinances in existence
at the time any criminal or civil enforcement actions were commenced, shall remain valid and in
full force and effect for purposes of all cases filed or commenced during the times said
ordinance(s) or portions thereof were operative. This section simply clarifies the existing
situation that nothing in this Ordinance affects the validity of prosecutions commenced and
continued under the laws in effect at the time the matters were originally filed.
SECTION 4. Codification. Provisions of this Ordinance shall be incorporated in the City Code
and the word 'ordinance" may be changed to 'bode', "article', "section", 'chapter" or another
word, and the sections of this Ordinance may be renumbered, or re -lettered, provided however
that any Whereas clauses and boilerplate provisions (i.e. Sections 2-4) need not be codified and
the City Recorder is authorized to correct any cross-references and any typographical errors.
P sed by the Council and signed by me in authentication of its passage this`d
day of , 2014.
Mayor Hank Williams
Ordinance No. f oL (072414)