I. RECOMMENDATION:
This was requested as a Future Agenda Item by Mayor Ramsey and Councilman Adkisson.
II. BACKGROUND:
( Ord. No. 789 , § 2, eff. 1-15-2017)
Sec. 3-9.06. - Penalties.
Any entity that fails to pay the taxes required by this chapter within thirty (30) days after the due date shall pay in addition to the taxes a penalty for nonpayment in the sum equal to twenty-five (25) percent of the total amount due. Additional penalties will be assessed in the following manner: ten percent (10%) shall be added on the first day of each calendar month following the month of the imposition of the twenty-five percent (25%) penalty if the tax remains unpaid - up to a maximum of one hundred percent (100%) of the tax payable on the due date. Receipt of the tax payment by the City shall govern the determination of whether the tax is delinquent. Postmarks will not be accepted as adequate proof of a timely payment.
III. DISCUSSION:
It is requested of the Council to waive late penalty fees for all cannabis companies for Fiscal Year 2021-2022 (the current fiscal year) to allow them to recover from the pandemic. They would still owe all associated taxes, only the late penalties would be waived.
IV. ALTERNATIVES:
Don’t waive late penalties.
V. FISCAL IMPACT:
The fiscal impact to the General Fund could not be determined as the Fiscal Year has not ended and it cannot be determined which company will owe late fees. Late Penalties are not included in the budget therefore there is no negative impact to the current year budget. |