HomeMy WebLinkAboutOrdinance 1994ORDINANCE NO. 1QQy
AMENDING ORDINANCE NO. 1992 CENTRAL POINT
MUNICIPAL CODE CHAPTER 3.30 MARIJUANA AND
MARIJUANA -INFUSED PRODUCT TAX AND
DECLARING AN EMERGENCY
Recitals:
A. Words lined thfough are to be deleted and words in bold are added.
B. Council may have a desire in the future to modify the tax rate on marijuana and
marijuana infused products. Ordinance 1992 did not provide sufficient language to allow
any change in the tax rate if changes are needed at a future date.
C. There were a few numerical corrections made to this ordinance.
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
33 )0.050 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
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.
Ordinance No. �R" 4 (091114)
330.020 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.
8. "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.
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.
Ordinance No. A (\�\(_ (091 114)
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.
3) Upon City Council resolution, the amount of the tax levied may be increased
up to twenty-five percent (25%) of the gross sale amount paid to the seller by a
registry identification cardholder.
4) Upon City Council resolution, the amount of the tax levied may be increased
up to twenty-five percent (25%) of the gross sale amount paid to the seller 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:
First quarter: January, February, March
Second quarter: April, May, June
Third quarter: July, August, September
Ordinance No. gy,._ (091114)
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 (5%) 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 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.
Ordinance No. � q 0.Ll (091114)
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 (25%) 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.
3.30.080 Appeal.
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.
Ordinance No. 0. l (0911 14)
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.
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 filed
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.
Ordinance No. 1 Rq. (091114)
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.
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.
I. 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 a claim 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 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.
Ordinance No. Aqq�__ (091 1 14)
3.30.12010 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).
3.30.13820 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 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
Ordinance No. k g0.q (091 1 14)
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.
3.30.14-830 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.
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;
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.
Ordinance No.tC� 0�4 (091114)
SECTION 4. Codification. Provisions of this Ordinance shall be incorporated in the City Code
and the word 'ordinance" may be changed to "code", "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.
SECTION 5. Emergency. Adoption of this ordinance is required prior to the General Election on
November 4, 2014. The Central Point Council hereby enacts an emergency clause making the tax
effective upon its passage.
Passed by the Council and signed by me in authentication of its passage this \ k
day of�32[ 2014.
Mayor Hank Williams
Ordinance No. 1 R (091114)