On November 4, 2014, the Cathedral City voters approved Measure N, which approved a new tax at a rate of up to fifteen cents per each dollar of proceeds or fractional part thereof on marijuana collectives and dispensaries operating in the City of Cathedral City.
On November 8, 2016, the Cathedral City voters approved Measure P, amending the existing Cannabis Business Tax to impose the Tax on all cannabis businesses and to provide different tax calculations for cultivating, manufacturing and dispensing cannabis.
A Marijuana (or cannabis) collective means any activity regulated or permitted by Chapter 9.108 of the Cathedral City Municipal Code, or California Health and Safety Code sections 11362.5, et seq., as may be amended from time to time, or any other activity or business that involves planting, cultivating, harvesting, transporting, dispensing, delivering, providing, manufacturing, compounding, converting, processing, preparing, storing, packaging, or testing any part of the marijuana plant.
Each cannabis business operating in the city, regardless of whether such cannabis business has a license pursuant to Chapter 5.88 or a permit pursuant to 9.108 of the City of Cathedral City Municipal Code, shall pay a cannabis and marijuana tax. On April 26, 2017, Resolution 2017-13, with an update on October 10, 2018, Resolution 2018-46, the City Council approved these resolutions pursuant to Section 3.48.040 of the City of Cathedral City Municipal Code, requiring payment of Cannabis and Marijuana tax in the following amounts:
- Ten cents ($.10) for each dollar of gross receipts* or fractional part thereof received by a dispensary or by any other cannabis business for activities other than cultivation or manufacturing.
- Fifteen dollars ($15.00) for each square foot or fractional part thereof of cannabis cultivation space.
- For cannabis-infused product, forty cents ($.40) of each cannabis-infused product other than cannabis concentrate produced or manufactured and packaged or intended for individual sale.
- For each gram of cannabis concentrate produced or manufactured, packaged, or intended for individual sale:
- Crude at $.05 per gram
- Distillate at $.10 per gram
- Exotic/Boutique at $.40 per gram
*Gross receipts (proceeds) of any kind, including without limitation, membership dues; the value of in-kind contributions; reimbursements provided by members regardless of form; any payments made; and anything else of value obtained by a cannabis or marijuana collective.
Depending on the type of cannabis business operating in the City of Cathedral City, there can be up to three different Cannabis and Marijuana Tax (CMT) returns filed each month: