Agenda Item Wording:
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Ordinance Adoption - Second reading and adoption of Ordinance No. 2024-06, adding Chapter 3.14 (Cannabis Business Tax) to Title 3 of the Visalia Municipal Code to establish a tax on cannabis business activities within the city.
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Deadline for Action: 6/17/2024
Submitting Department: Community Development
Contact Name and Phone Number:
Devon Jones, Economic Development Manager, devon.jones@visalia.city, (559) 713-4190
Department Recommendation:
Staff recommends that the City Council conduct the second reading and adopt Ordinance No. 2024-06, adding Chapter 3.14 (Cannabis Business Tax) to Title 3 of the Visalia Municipal Code to establish a tax on cannabis business activities within the city. The Cannabis Business Tax will not take effect unless the tax measure is approved by the voters on November 5th.
Summary:
On June 3, 2024, the City Council conducted the first reading of Ordinance No. 2024-06, adding Chapter 3.14 (Cannabis Business Tax) to Title 3 of the Visalia Municipal Code to establish a tax on cannabis business activities within the city and adopted Resolution 2024-24 to place a cannabis tax measure on the November 2024 general election ballot. After the item was presented and public comments received, the City Council voted 5-0, to introduce and adopted Ordinance No. 2024-06.
Background Discussion:
Senate Bill (SB) 1186, the "Medicinal Cannabis Patients' Right of Access Act" was signed into law in late 2022. This state law, which became effective on January 1, 2024, prohibits local agencies from enforcing any local regulations that prohibit the retail sale by delivery of medicinal cannabis. After this date, "delivery only" (i.e., delivery of medicinal cannabis) businesses will be permitted, subject to reasonable zoning regulations for public health and safety, within the City of Visalia. This means that warehouse-based businesses could legally operate in the City of Visalia as long as they sold medicinal cann...
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