R116021
City Council Meeting: June 25, 2024
RESOLUTION NUMBER 11602 (CCS)
(City Council Series)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA MONICA
MODIFYING THE CITY'S BUSINESS LICENSE TAX RATES FOR CANNABIS
BUSINESSES PURSUANT TO SANTA MONICA MUNICIPAL CODE SECTION
6.204.040
WHEREAS, on November 8, 2022, the voters approved Measure HMP, which
added Chapter 6.204 (Cannabis Business Tax) to the Santa Monica Municipal Code; and
WHEREAS, Chapter 6.204 established the initial and current cannabis business
license tax rates as: (a) 3% of gross receipts for Adult-Use Non-Medicinal Cannabis
Retailers for the sale of Adult-Use Non-Medicinal Cannabis or Adult-use Non-Medicinal
Cannabis products; (b) 2% of gross receipts for Medicinal Cannabis Retailers from the
retail sale of Medicinal Cannabis or Medicinal Cannabis products; and (c) 1% of gross
receipts relating to the distribution, manufacturing, cultivation, or laboratory testing of
Cannabis or Cannabis products; and
WHEREAS, Santa Monica Municipal Code Section 6.204.040 authorizes the City
Council to increase the tax rate for cannabis businesses up to “maximum tax rate of ten
percent (10%) without voter approval”; and
WHEREAS, the City Council has considered cannabis business license tax rates
in neighboring jurisdictions and determined that it is appropriate to increase the business
license tax for cannabis businesses as set forth in this resolution.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA MONICA
DOES RESOLVE AS FOLLOWS:
Santa Monica, California
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SECTION 1. Pursuant to Santa Monica Municipal Code Section 6.204.040; the
following cannabis business license tax rates shall be established effective January 1,
2025:
(a)the cannabis business license tax for Adult-use Non-Medicinal
Cannabis or Adult-use Non-Medicinal Cannabis products shall be 4%
of the gross receipts for such sales; and
(b)the cannabis business license tax for Medicinal Cannabis or Medicinal
Cannabis products shall be 2% of the gross receipts for such sales.
SECTION 2. The City Clerk shall certify to the adoption of this Resolution and
thenceforth and thereafter the same shall be in full force and effect.
APPROVED AS TO FORM:
_________________________
Douglas Sloan, City Attorney
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Adopted and approved this 25th day of June, 2024.
__________________________
Phil Brock, Mayor
I, Nikima S. Newsome, Interim City Clerk of the City of Santa Monica, do hereby
certify that Resolution No. 11602 (CCS) was duly adopted at a meeting of the Santa
Monica City Council held on the 25th day of June, 2024, by the following vote:
AYES: Councilmembers Parra, Torosis, de la Torre,
Mayor Pro Tem Negrete, Mayor Brock
NOES: Councilmembers Zwick, Davis
ABSENT: None
ATTEST:
_____________________________________
Nikima S. Newsome, Interim City Clerk
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