I. RECOMMENDATION:
This was a future agenda item requested by Councilman Adkisson requesting an adjustment to the City's tax rates for indoor cultivation. Staff has prepared a resolution for Council should they wish to make the recommended changes requested of Councilman Adkisson.
II. BACKGROUND:
The City of Coalinga currently charges $7.00 per square foot of canopy for commercial cannabis indoor cultivation and $2.00 per square of canopy for an indoor nursery. Councilman Adkisson requested that this rate be adjusted so that it does not impact existing tax revenue but lowers the rate for scale.
III. DISCUSSION:
Councilman Adkisson is requesting that the City Council approve the following rate structure for indoor commercial cannabis operations:
Indoor Cultivation
$7.00 per s/f - Up to 20,000 s/f of canopy
$3.50 per s/f - Over 20,000 s/f of canopy
Nursery
$2.00 per s/f - Up to 10,000 s/f of canopy
$1.00 per s/f - Over 10,000 s/f of canopy
IV. ALTERNATIVES:
- Council can take no action;
- Council can direct staff to amend the attached resolution accordingly; or
- Council may adopt resolution No.4085
V. FISCAL IMPACT:
With the adoption of Resolution No. 4085 there would be no direct decrease in collected tax revenue since all of the current cultivation operations operate under the 20,000 square foot threshold at the moment. |