City to consider conducting first reading of Ordinance 567

Ordinance to impose a business tax on commercial cannabis businesses

The Lindsay City Council will hold a public hearing today, during which it will consider conducting the first reading of Ordinance 567 to impose a business tax on commercial cannabis businesses.

Currently, the City of Lindsay prohibits all commercial cannabis business, said City Finance Director Bret Harmon. Harmon said the city council has deliberated about whether to allow and tax commercial cannabis business activities.

Harmon said the council decided to pursue a tax measure. He said Ordinance 567 imposes a business tax to be effective if the measure passes.

Harmon said the tax measure sets the maximum tax rates at $25 per square foot or 10 percent gross receipts tax dependent on type of business. He said the city council will set or adjust the specific tax rates by resolution. He added that the tax rate per square foot will apply to growing cannabis.

“The gross receipts tax will apply to all other stages of manufacturing, testing, etc. before the retail stage, with retail not being legal in Lindsay,” Harmon said. “Resolution 18-31 prepares the way for Ordinance 567 to establish the tax rates.”

Harmon said the ordinance establishes the tax rates for cannabis-related commercial businesses. If the city council authorizes and the voting residents pass the tax measure, Harmon said the city will then receive tax revenue from these businesses once established in the city. He said the city will see increases in public safety costs and additional negative

Other Matters Before Lindsay Council

Will receive a staff report from City Manager Bill Zigler regarding recent, current or upcoming events, activities or matters.

Will consider School Resource Officer (SRO) Agreement with LUSD.

Will consider transferring funds from General Funds to Wellness and Assessment Districts.

Will receive a presentation from Sol Flores of Mid Valley Disposal regarding 2017 Recycling Updates.

Will consider Resolutions No. 18-33: Ordering the preparation of an Engineer’s Report for the FY 2018-19 Landscape and Lighting Maintenance Districts, 18-34: Giving Preliminary Approval of the Engineer’s Report for the FY 2018-19 Landscape and Lighting Maintenance Districts, and 18-35: Declaring the Intent to Levy and Collect Assessments for FY 2018-19 and setting a public hearing for July 10, 2018.

Will hold a public hearing considering Resolution No. 18-32, a resolution of the city council of the City of Lindsay approving the Fiscal Year operating budget and five-year capital improvement plan for 2018-19.

Will consider Resolution 18-31, a resolution calling city election for voter approval of commercial cannabis business tax. Will also consider adding Chapter 5.32 to the Lindsay Municipal Code and specifications of the election order.

The council meeting starts at 6 p.m. today at Lindsay’s City Hall.