HomeMy WebLinkAbout2016 Resolution No. 098•
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RESOLUTION NO. _gj_
SERIES OF 2016
A RESOLUTION SUBMITIJNG PROPOSED BALLOT LANGUAGE TO THE A VOTE OF
THE REGISTERED ELECTORS OF THE CITY OF ENGLEWOOD AT THE NEXT
MUNICIPAL ELECTION NOVEMBER 8, 2016 A BALLOT ISSUE AUTHORIZJNG THE
CITY OF ENGLEWOOD TO IMPOSE A SALES TAX OF 3.5% THAT MAY BE RAISED UP
TO 15% ON THE SALE OF RETAIL MARIJUANA 1N ENGLEWOOD; PROVIDED THE
TAX SHALL NOT BE RAISED ABOVE 3 .5% ON OR BEFORE JANUARY 1, 2018 AND
CANNOT BE RAISED BY MORE THAN 1.5% PER YEAR. WITH THE TAX REVENUES
BEJNG COLLECTED AND USED TO FUND LOCAL LAW ENFORCEMENT,
EDUCATIONAL PROGRAMS DESIGNATED BY THE CITY, AND OTHER GENERAL
OPERATJNG EXPENSES OF THE CITY OF ENGLEWOOD.
WHEREAS, on August 10 th
, 2016 an initiative petition was submitted to the City Clerk's
Office; and
WHEREAS, the Englewood Home Rule Charter and State Statutes provide that this matter be
forwarded to the Englewood City Council after the City Clerk certifies the validity and
sufficiency of such initiative petition; and
WHEREAS , the Englewood City Clerk has certified the validity and sufficiency of the
signatures for the initiative petition; and
WHEREAS, the City of Englewood is a Colorado Home Rule municipality duly organized
and existing under the Englewood Home Rule Charter and the laws of the State of Colorado; and
WHEREAS, Article X, Section 20 of the Colorado Constitution, also referred to as the
Taxpayer's Bill of Rights ("TABOR") requires voter approval for any new tax , any increase in
any tax rate, the creation of any debt, extension of an expiring tax, and the spending of certain
funds above limits established by TABOR; and
WHEREAS, November 8, 2016, is the Coordinated General Election for the State of Colorado
and is one of the election dates at which ballot issues may be submitted to the eligible electors of
the City pursuant to TABOR; and
WHEREAS, in connection therewith, and if approved by a majority of the registered electors
of the City voting in the November 8, 2106 Coordinated General Election, Title 4 of the
Englewood Municipal Code shall be amended to add a new Chapter 6, "Retail Marijuana Sales
Tax," as provided herein.
NOW, THEREFORE, BE IT RESOLVED 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 issue authorizing the
City of Englewood to impose a Sales Tax of 3.5% that may be raised up to 15% on the sale of
Retail Marijuana in Englewood; provided the tax shall not be raised above 3.5% on or before
January 1, 2018 and cannot be raised by more than 1.5% per year without further voter approval,
so long as the rate of taxation does not exceed 15% and with the tax revenues being collected and
used to fund local law enforcement, educational programs designated by the City, and other
general operating expenses of the City of Englewood to read as follows:
Ballot Issue
SHALL THE CITY OF ENGLEWOOD IMPOSE AN ADDITIONAL SALES
TAX OF 3.5% THAT MAY BE RAISED UP TO 15% ON THE SALE OF
RETAIL MARIWANA IN ENGLEWOOD; PROVIDED THE TAX SHALL
NOT BE RAISED ABOVE 3.5% ON OR BEFORE JANUARY 1, 2018, AND
CANNOT BE RAISED BY MORE THAN 1.5% PER YEAR, WITH THE TAX
REVENUES BEING COLLECTED AND USED TO FUND LOCAL LAW
ENFORCEMENT, EDUCATIONAL PROGRAMS DESIGNATED BY THE
CITY AND OTHER GENERAL OPERATING EXPENSES OF THE CITY OF
ENGLEWOOD?
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. Only if the issue is approved by the registered electors of the City of Englewood
shall the Englewood Municipal Code be amended.
Section 5. For purposes of Section 1-11-203.5, C.R.S., this Resolution shall serve to set the
title and content of the ballot issue set forth herein and the ballot title for such issue shall be the
text of the issue 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 issue is set by the City Council on final reading of this Resolution.
Section 6. If any section, paragraph, clause, or other portion of this Resolution 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 Resolution.
ADOPTED AND APPROVED this 6th day of Septe
I, Loucrishia A. Ellis, City Clerk for ~ £!.ty of Englewood, C
above is a true copy of Resolution No. , Series of 2016.
rado, hereby certify the
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Date
September 6 , 2016
INITIATED BY
City Clerk's Office
Agenda Item
11cv
COUNCIL COMMUNICATION
Subject
Proposed resolution submitting to a vote of the registered electors of
the City of Englewood, an issue authorizing the City of Englewood to
impose a sales tax on retail marijuana within the City limits of
Englewood , Colorado .
STAFF SOURCE
Loucrishia A Ellis, City Clerk
COUNCIL GOAL AND PREVIOUS COUNCIL ACTION
This initiative has been discussed at several meetings of Council.
RECOMMENDED ACTION
Approve the proposed resolution placing this issue on the November 8 , 2016 ballot. As the Initiative Petition has
been declared valid and sufficient, and the City Clerk has certified those results to City Council , the City Clerk
must certify the proposed ballot question to the Arapahoe County Cle rk and Recorder.
BACKGROUND, ANALYSIS, AND ALTERNATIVES IDENTIFIED
On June 17 , 2016 , a written notice of the proposed initiative was filed with the City Clerk's Office in accordance
with Colorado Revised Statutes§ 31-11-104 (1).
The deadline to turn in the petition was August 10, 2016 by 5:00 p .m. and they needed at least 597 valid
signatures of City of Englewood registered electors .
On June 24 , 2016 , the City Clerk certified the Initiative Petition as to form.
On August 10, 2016 , the Initiative Petition was filed with the City Clerk's Office .
All ballot issues (TABOR), proposed by the initiative process, must be voted on . The Council does not have the
option of adopting the proposed ballot issue and bypass the election process .
FINANCIAL IMPACT
Since costs are based on several variables, e .g . the number of registered electors in the City of Englewood at the
time of the election , the number of entities participating in the election , the financial impact is only an estimate .
The County's estimate of our final cost is $11 ,659 .69. The cost of this additional ballot issue has been factored in
to th is cost.
LIST OF ATTACHMENTS
Proposed resolution.
Written notice of the proposed initiative.
Memo to Mayor Jefferson and City Council , dated August 19, 2016, certifying the valid ity and sufficiency of the
Petition .
• Notice of Proposed Ordinance
June 17, 2016
Englewood City Clerk Loucrishia Ellis
Englewood Civic Center
1000 Englewood Parkway, 3rd Floor
cityclerk@englewoodgov.org
Ms. Ellis,
RECEIVED
CITY OF ENGLEWOOD, CO
JUN 1 7 2016 ,{~
OFFICE OF
THE CITY CLERK
Below you will find the full text of a proposed ordinance to be submitted at the regular statewide general
election on November 8, 2016. The following two persons shall represent the proponents in all matters
affecting the petition and should receive by mail all notices or information concerning the petition.
Timothy Brown
3531 S Logan St. Ste D210
Tim@responsibleenglewood.org
720-955-7623
• Bruce Carter
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3531 S Logan St. Ste D241
Bruce@responsibleenglewood.org
720-955-7623
Thank you,
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Timothy Brown
Full Text of Measure:
Be it enacted by the City of Engle·wood, Colorado
Ordinance Concerning Retail Marijuana Sales Tax in the City of Englewood, Colorado
WHEREAS, the City of Englewood is a Colorado home rule municipality duly organized and
existing under the Englewood Home Rule Charter and the laws of the State of Colorado; and
WHEREAS, Article X, Section 20 of the Colorado Constitution, also referred to as the
Taxpayer's Bill of Rights ("TABOR") requires voter approval for any new tax, any increase in any tax •
rate, the creation of any debt, extension of an expiring tax, and the spending of certain funds above
limits established by TABOR; and
WHEREAS, November 8, 2016, is the coordinated general election for the State of Colorado
and is one of the election dates at which ballot issues may be submitted to the eligible electors of the
City pursuant to TABOR; and
WHEREAS, in connection therewith, and if approved by a majority of the registered electors of
the City voting in the November 8, 2016 coordinated general election, Title 4 of the Englewood
Municipal Code shall be amended to add a new Chapter 7, "Retail Marijuana Sales Tax," as provided .
herein.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF
ENGLEWOOD, COLORADO OR THE REGISTERED ELECTORS OF THE CITY OF
ENGLEWOOD, COLORADO THAT:
Section 1. Title 4 of The Englewood Municipal Code, "Municipal Finance and Taxation," is hereby
amended by the addition of a new Chapter 7, entitled "Retail Marijuana Sales Tax," to read
as follows:
Chapter 7 RET . .l\IL MARIJUANA SALES TAX
4-7-1: Administration and Enforcement.
The Retail Marijuana Sales Tax imposed pursuant to this Chapter 7 shall be administered and
enforced in accordance with the provisions of Title 4, Chapter 4 of the Code, and in a manner c:onsistent
with the administration and enforcement of other City sales taxes, including, without limitation, any
penalties for failw-e to make any return or to collect or pay any tax.
4-7-2: Definitions.
When used in this Chapter, the following words and phrases shall have the following
meanings, unless from the context it clearly appears that a different meaning is indicated:
Consumer: A person twenty-one (21) years of age or older who purchases Retail Marijuana or
Retail Marijuana Products for personal use by a person twenty-one (21) years of age or older but not
for resale to others.
Retail Marijuana: All parts of the plant of the genus cannabis whether growing or not, the
seeds thereof, the resin extracted from any part of the plant, and every compound, manufacture, salt,
derivative, mixtme, or preparation of the plant, its seeds, or its resin, including marijuana
concentrate. "Marijuana" does not include industrial hemp, nor does it include fiber produced from
the stalks , oil or cake made from the seeds of the plant, sterilized seed of the plant which is
incapable of germination, or the weight of any other ingredient combined with marijuana to prepare
topical or oral administrations, food, drink or other product. Retail Marijuana does not include
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Medical Marijuana as defined in Article XVIII, Section 14, of the Colorado Constitution, under the •
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Colorado Medical Marijuana Code, C.R.S. §12-43.3-101, et seq., and Title 5, Chapter 3D of the
Code.
Retail Marijuana Products: Concentrated Retail Marijuana Products that are comprised of
Retail Marijuana and other ingredients and are intended for use or consumption, such as, but not
limited to, edible products, ointments, and tinctures.
Retail Marijuana Sales Tax: The tax imposed on the sale of Retail Marijuana and Retail
Marijuana Products pursuant to this Chapter and Title 5, Chapter 3D of the Code.
Retail Marijuana Store: An entity licensed by the Colorado Department of Revenue to sell
Retail Marijuana and Retail Marijuana Products to Consumers pursuant to Section 16 of Article ~III
of the Colorado Constitution and the "Colorado Retail Marijuana Code," Article 43.4 of Title 12,
C.R.S., and licensed by the Local Licensing Authority pursuant to Section 5-3E-2 of the Code.
4-7-3: Imposition of tax.
A. In addition to the sales tax imposed by Title 4, Chapter 4 of the Code, tl1ere is imposed upon all sales
of Retail Marijuana and Retail Marijuana Products to a Consumer by a Retail Marijuana Store a tax
at the rate of three and one-half percent (3.5%) of the amount of the sale.
B. The maximum tax rate that may be imposed pursuant to this Section is fifteen percent (15%). At any
time on or after January 1, 2017, the City may, by ordinance:
1. Establish another tax rate to be imposed pursuant to this Chapter 7 that is equal to or less than the
• maximum fifteen percent (15%) tax rate provided in this subsection; or
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2. After establishing a tax rate that is lower than fifteen percent (15%), increase or decrease the tax
rate to be imposed pursuant to this Section; except that in no event shall the City increase the tax
rate above fifteen percent (15%) of the amount of the sale of Retail Marijuana or Retail
Marijuana Products.
C. Nothing in this section shall be constrned to impose a tax on the sale of marijuana or marijuana
products to any person by a Medical Marijuana Center licensed by the Colorado Department of
Revenue to sell Medical Marijuana and Medical Marijuana-Infused Products pursuant to the
Colorado Medical Marijuana Code, Article 43.3 of Title 12, C.R.S., and licensed by the City
pursuant to Title 5, Chapter 3D of the Englewood Municipal Code. To the extent any Retail
Marijuana Establishment exists at the same location and under common ownership with a licensed
Medical Marijuana Center, the retailer shall strictly segregate and account for sales of Retail
Marijuana distinct from Medical Marijuana in accordance with all applicable state and city laws and
regulations governing co-location of Retail Marijuana Stores and Medical Marijuana Centers.
4-7-4: Purpose of tax.
The City Council hereby declares that the purpose of the levy of the Retail Marijuana Sales Tax
imposed by this Chapter is for raising funds for payment oflocal law enforcement expenses, educational
programs designated by the City, and other general operating expenses of the City, according to such
allocations as may be designated by the City on an annual basis .
4-7-5: Revenue and spending limitations.
Notwithstanding any limitations on revenue, spending, or appropriations contained in Section 20 of
Article X of the Colorado Constitution or any other provision oflaw, any revenues generated by the •
Retail Marijuana Sales Tax imposed pursuant to this Chapter, as approved by the voters at the general
election on November 8, 2016, may be collected and spent as a voter-approved revenue change and shall
not require further voter approval to modify the tax rate as provided in Section 4-7-3 or to collect and
spend any revenue derived from a modified tax rate.
Section 2. If any clause or provision of this ordinance is held to be invalid or unenforceable, the
invalidity or unenforceability of the clause or provisions will not affect the validity of any of
the remaining clauses or provisions of this ordinance, which, upon the date that it is to take
effect, will become, and remain thereafter, in full force and effect.
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MEMORANDUM
TO:
FROM:
DATE:
Mayor Jefferson and City Council Members
Loucrishia A. Ellis, City Clerk
August 19, 2016
SUBJECT: Initiative Petition:
Summary: The measure imposes a sales tax of 3.5% that may be ra ised up to 15% on the sale of retail
marijuana in Englewood , provided the tax shall not be raised above 3.5% on or before January 1, 2018 and
cannot be raised by more than 1.5% per year. The tax revenue would be collected and spent to fund local
law enforcement, educational programs designated by the City , and other general operating expenses of the
City of Englewood . Article 18 , Section 16 of the Colorado Constitution and C .R.S. § 39-28.8-203(1 )(a)(VI)
allows local governments to impose taxes on the sale of retail marijuana. Voter approval is required before
these taxes can be imposed .
State of Colorado )
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County of Arapahoe )
I, the undersigned, do hereby certify, pursuant to Colorado Revised Statutes §31-11-
109, that the Initiative Petition filed with the City Clerk's Office on August 10, 2016
has been reviewed and it has been determined to be valid and sufficient.
anie Carlile, Deputy City Clerk
cc: Eric Keck , City Manager