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ATTY/ORD.473/RC CANNABIS TAX ORDINANCE REV: 07-18-18 VR Page 2 of 16 Sec. 32.803 Authority and Purpose. The purpose of this Article is to enact a tax, for revenue purposes, pursuant to Sections 37101 and 37100.5 of the California Government Code, upon cannabis businesses that engage in business in the City. The cannabis business tax is levied based upon gross receipts. It is not a sales and use tax, a tax upon income, or a tax upon real property. The cannabis business tax is a general tax enacted solely for general governmental purposes of the City and not for specific purposes. All of the proceeds from the tax imposed by this Article shall be placed in the City's general fund and be available for any legal municipal purpose. Sec. 32.804 Intent. The intent of this Article is to levy a tax on all cannabis businesses that operate in the City, regardless of whether such business would have been legal at the time this Article was adopted. Nothing in this Article shall be interpreted to authorize or permit any business activity that would not otherwise be legal or permissible under laws applicable to the activity at the time the activity is undertaken. Sec. 32.805 Definitions. The following words and phrases shall have the meanings set forth below when used in this Article: A. “Business” shall include all activities engaged in or caused to be engaged in within the City, including any commercial or industrial enterprise, trade, profession, occupation, vocation, calling, or livelihood, whether or not carried on for gain or profit, but shall not include the services rendered by an employee to his or her employer. B. “Cannabis” means all parts of the plant cannabis sativa linnaeus, cannabis indica, or cannabis ruderalis, whether growing or not; the seeds thereof; the resin, whether crude or purified, extracted from any part of the plant; and every compound, manufacture, salt, derivative, mixture, or preparation of the plant, its seeds, or resin. Cannabis also means the separated resin, whether crude or purified, obtained from cannabis. Cannabis also means cannabis as defined by Section 11018 of the California Health and Safety Code. C. “Cannabis product” means cannabis that has undergone a process whereby the plant material has been transformed into a concentrate, including but not limited to concentrated cannabis or an edible or topical product. Cannabis product also means cannabis products as defined by Section 11018.1 of the California Health and Safety Code.