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Home My WebLink About2016 Ordinance No. 029ORDINANCE NO. t7<.f SERIES OF 2016 BY AUTHORITY COUNCil., BILL NO. 27 INTRODUCED BY COUNCIL MEMBER OLSON AN ORDINANCE SUBMITTING TO A VOTE OF THE REGISTERE D ELECTORS OF THE CITY OF ENGLEWOOD AT THE NEXT MUNICIPAL ELECTION NOVEMBER 8, 2016 A BALLOT QUESTION AUTHORIZING THE CITY OF ENGLEWOOD SALES TAXES BE INCREASED BY $512,500 ANNUALLY IN THE FIRST FULL FISCAL YEAR AND BY SUCH AMOUNTS AS ARE RAISED ANNUALLY THEREAFTER BY IMPOSING AN ADDITIONAL SALES TAX OF 3.5% ON THE SALE OF RETAil., MARIJUANA AND RETAil., MARIJUANA PRODUCTS, WITH THE TAX REVENUES BEING USED TO FUND ANY LAWFUL GOVERNMENT AL PURPOSE DETERMINED BY THE CITY COUNCIL, WITH THE RATE OF THE TAX BEING ALLOWED TO BE INCREASED OR DECREASED ( WITHOUT FURTHER VOTER APPROVAL SO LONG AS THE RATE OFT AXA TION DOES NOT EXCEED 15% AND WITH THE RESULTING TAX REVENUE BEING ALLOWED TO BE COLLECTED AND SPENT NOTWITHSTANDING ANY LIMITATIONS PROVIDED BY LAW. WHEREAS, this bill for an ordinance would submit to the registered voters of the City of Englewood a ballot question issue regarding increasing City taxes by imposing an additional Sales Tax on the sale of Retail Marijuana and Retail Marijuana Products, with the tax revenues used to fund any lawful governmental purpose determined by the City Council, with the rate of the tax being allowed to be increased or decreased without further voter approval so long as the rate of taxation does not exceed 15%, and with the resulting tax revenue being allowed to be collected and spent notwithstanding any limitations provided by law; and WHEREAS, Article X, Section 20 of the Colorado Constitution, commonly known as TABOR, requires that the City have voter approval prior to issuance of any multiple-fiscal year direct or indirect debt or other financial obligation whatsoever. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF ENGLEWOOD, COLORADO, THAT: Section 1. There is hereby submitted to the registered electors of the City of Englewood at the next scheduled municipal election November 8, 2016, the following ballot question authorizing the City of Englewood Sales Taxes be increased by imposing an additional Sales Tax of 3.5% on the sale of Retail Marijuana and Retail Marijuana products, with the tax revenues being used to fund any lawful governmental purpose determined by the City Council to read as follows: 1 Question No. SHALL CITY OF ENGLEWOOD TAXES BE INCREASED BY $512,500 ANNUALLY IN THE FIRST FULL FISCAL YEAR AND BY SUCH AMOUNTS AS ARE RAISED ANNUALLY THERE AFTER BY IMPOSING AN ADDITIONAL SALES TAX OF 3.5% ON THE SALE OF RETAIL MARIJUANA AND RETAIL MARIJUANA PRODUCTS, WITH THE TAX REVENUES BEING USED TO FUND ANY LAWFUL GOVERNMENT AL PURPOSE DETERMINED BY THE CITY COUNCIL, WITH THE RATE OF THE TAX BEING ALLOWED TO BE INCREASED OR DECREASED WITHOUT FURTHER VOTER APPROVAL SO LONG AS THE RATE OF TAXATION DOES NOT EXCEED 15%, AND THE RESULTING TAX REVENUE BEING ALLOWED TO BE COLLECTED AND SPENT NOTWITHSTANDING ANY LIMITATIONS PROVIDED BY LAW? Yes ---___ No Section 2. Each elector voting at said election and desirous of voting shall indicate his/her choice by depressing the appropriate counter of the voting machine or by the appropriate marking upon paper ballots where used. Section 3. The proper officials of the City of Englewood shall give notice of said next scheduled municipal election, such notice shall be published in the manner and for the length of time required by law, and the ballots cast at such election shall be canvassed and the result ascertained, determined, and certified as required by law. Section 4. For purposes of Section 1-11-203.5, C.R.S., this Ordinance shall serve to set the title and content of the ballot issue set forth herein and the ballot title for such question shall be the text of the question itself. Any petition to contest the form or content of the ballot title may be filed with the District Court and a copy served on the City Clerk within five days after the title of the ballot question is set by the City Council on final reading of this Ordinance. Section 5. If any section, paragraph, clause, or other portion of this Ordinance is for any reason held to be invalid or unenforceable, the invalidity or unenf orceability shall not affect any of the remaining portions of this Ordinance. Introduced, read in full, and passed on first reading on the 18th day of July, 2016. Published by Title as a Bill for an Ordinance in the City's official newspaper on the 21st day of July, 2016. 2 Published as a Bill for an Ordinance on the City's official website beginning on the 20th day of July, 2016 for thirty (30) days. Read by title and passed on final reading on the 1 •1 day of August, 2016. Published by title in the City's official newspaper as Ordinance Noe:l--1 Series of 2016, on the 4th day of August, 2016. Published by title on the City's official website beginning. August, 2016 for thirty (30) days. I, Loucrishia A. Ellis, City Clerk of the City of Englewood, Colorado, hereby certify that the above and foregoing is,1 }5)1,e copy of the Ordinance passed on final reading and published by title as Ordinance No9' Series of 2016. � 3 -~6 Lr:.o ucrishia A. Ellis, City Clerk COUNCIL COMMUNICATION Meeting Date: Agenda Item: Subject: Approval of Retail 11bi Marijuana TABOR ballot August 1, 2016 language-2nd Reading Initiated By: Department of Finance and Staff Source: Kathleen Rinkel, Director of Administrative Services Finance and Administrative Services PREVIOUS COUNCIL ACTION Council agreed at the June 6, 2016, Study Session to include a Tabor question to tax Recreational Marijuana sales, should the industry intiative pass, in the November 2016 elections. At the June 20, 2016, Study Session, Council directed staff to adjust the language to clarify the subject. At the July 5th Council Study Session, the proposed wording was discussed and approved by City Council, which then directed staff to bring the proposed bill for an ordinance forward for first reading at the July 18, 2016, Council meeting. •RECOMMENDED ACTION Staff recommends Council approve a bill for an ordinance, on second reading, approving the ballot language to be included in the November 2016 elections. BACKGROUND, ANALYSIS, AND ALTERNATIVES IDENTIFIED Pursuant to Article X, § 20 of the Colorado Constitution ("TABOR"), the voters must approve any additional taxation. To be able to collect sales tax on the sale of Recreational Marijuana, should the initiative pass in the November 2016 election, a ballot issue must be approved by the voters for the specific tax. Council has had lengthy discussions on the Recreational Marijuana issue and agreed that a ballot issue regarding the taxing of recreational marijuana should be placed on the November 2016 ballot. Council also directed staff to provide clarification in the ballot language adding: •"FOR THE RETAIL SALE OF MARIJUANA" after the initial introduction of the sales tax proposal. •A 'whereas' clause to further enunciate that the tax upon retail marijuana sales will only go into effect if an initiative is passed by the voters that allows for such sales. FINANCIAL IMPACT Taxation of Recreational Marijuana sales will provide additional Sales & Use tax for the City. Estimation of revenue is $512,500 based on sampling sales in the neighboring cities of Wheatridge, Northglenn and Littleton. The estimate was calculated based on an average sale of approximately $171,000 per store and an assumption of three stores in Englewood. LIST OF ATTACHMENTS Proposed Bill for an Ordinance COUNCIL COMMUNICATION Meeting Date: Agenda Item: Subject: Approval of Retail 11aii Marijuana TABOR ballot July 18, 2016 language Initiated By: Department of Finance and Staff Source: Kathleen Rinkel, Director of Administrative Services Finance and Administrative Services PREVIOUS COUNCIL ACTION Council agreed at the June 6, 2016, Study Session to include a Tabor question to tax Recreational Marijuana sales, should the industry intiative pass, in the November 2016 elections. At the June 20, 2016, Study Session, Council directed staff to adjust the language to clarify the subject. At the July 5th Council Study Session, the proposed wording was discussed and approved by City Council, which then directed staff to bring the proposed bill for an ordinance forward for first reading at the July 18, 2016, Council meeting. RECOMMENDED ACTION Staff recommends Council approve a bill for an ordinance, approving the ballot language to be included in the November 2016 elections. BACKGROUND, ANALYSIS, AND ALTERNATIVES IDENTIFIED Pursuant to Article X, § 20 of the Colorado Constitution ("TABOR"), the voters must approve any additional taxation. To be able to collect sales tax on the sale of Recreational Marijuana, should the initiative pass in the November 2016 election, a ballot issue must be approved by the voters for the specific tax. Council has had lengthy discussions on the Recreational Marijuana issue and agreed that a ballot issue regarding the taxing of recreational marijuana should be placed on the November 2016 ballot. Council also directed staff to provide clarification in the ballot language adding: •"FOR THE RETAIL SALE OF MARIJUANA" after the initial introduction of the sales tax proposal. •A 'whereas' clause to further enunciate that the tax upon retail marijuana sales will only go into effect if an initiative is passed by the voters that allows for such sales. FINANCIAL IMPACT Taxation of Recreational Marijuana sales will provide additional Sales & Use tax for the City. Estimation of revenue is $512,500 based on sampling sales in the neighboring cities of Wheatridge, Northglenn and Littleton. The estimate was calculated based on an average sale of approximately $171,000 per store and an assumption of three stores in Englewood. LIST OF ATTACHMENTS Proposed Bill for an Ordinance