§ 64-16.602. Reporting and remittance of cannabis business tax.

(a)

The cannabis business tax is due and payable in legal tender and in accordance with Revenue and Taxation Code Section 2501 et seq. The cannabis business tax is due and payable on a quarterly basis as follows:

(1)

Each person owing a tax under this chapter shall, on or before the last day of the month following the close of each calendar quarter, complete and submit to the treasurer-tax collector a tax statement and remit to the treasurer-tax collector the tax due. The tax due is no less than the quarterly installment due, but a person may at any time pay the estimated tax due for the entire fiscal year. The tax is due on or before the last day of the month following the close of that calendar quarter (i.e., on or before April 30, July 31, October 31, or January 31, as applicable). Any deficiencies of the estimated tax due must be remitted before the last day of the month following the calendar quarter in which the deficiency existed to avoid penalties.

(2)

If a tax is owed on commercial cannabis cultivation, the tax due shall be determined in accordance with section 64-16.404(b). The tax will not be prorated or adjusted for any reduction in the square footage of canopy authorized but not utilized for cultivation. If cultivation begins in the middle of a fiscal year, the treasurer-tax collector will prorate, in monthly increments, the amount due for the fiscal year.

(b)

All cannabis business tax statements must be completed on the forms designated by the treasurer-tax collector.

(c)

Tax statements and payments for all outstanding taxes owed by a commercial cannabis activity are immediately due to the treasurer-tax collector if the commercial cannabis activity ceases operating for any reason.

(d)

If any person, while liable for any cannabis business tax, sells, assigns or otherwise transfers ownership or control of a commercial cannabis activity, whether voluntarily or involuntarily ("transferor"), the person receiving ownership or control of that commercial cannabis activity ("transferee") shall do both of the following within five days after the effective date of the change in ownership or control: (1) notify the treasurer-tax collector of the change in ownership or control; and (2) pay the amount of cannabis business tax due, including all penalties and interest assessed on the tax. Notwithstanding the foregoing, and unless otherwise provided by law, upon the transfer of ownership of a cannabis business, the transferor and transferee are jointly and severally liable for any cannabis business tax due as of the date the treasurer-tax collector receives notice of the transfer, and all remedies available to the treasurer-tax collector may be sought against both the transferor and the transferee.

(e)

The treasurer-tax collector may, at his or her discretion, establish shorter payment periods for any person as the treasurer-tax collector deems necessary to ensure collection of the tax.

(f)

The treasurer-tax collector may, as part of administering the tax and in his or her discretion, modify requirements concerning the form of payment and take other administrative actions as needed to facilitate collection of the tax.

(g)

Whenever any payment, statement, report, request, or other communication is due, it must be received by the treasurer-tax collector on or before the due date. A postmark will not be accepted as timely remittance. If the due date falls on a Saturday, a Sunday, or a holiday, the due date is the next regular business day on which the county is open to the public.

(Ord. No. 2018-22, § I, 11-6-18)