A. Voters approved this chapter. Any amendment to this chapter to increase the taxes above the maximum rates, or decrease them below the minimum rates, provided by this chapter requires further voter approval. The voters authorize the City Council to set the taxes at or below the applicable maximums, and at or above the applicable minimums, or otherwise to amend, modify, change, or revise any provision of this chapter as the City Council deems in the best interest of the City. In addition, the City Council may establish exemptions, incentives, or other reductions, and penalties and interest charges or assessments for failure to pay the tax when due, as otherwise allowed by the City Charter, the City’s Municipal Code, and State law. No action by the City Council under this section shall prevent it from later adjusting the tax or removing any exemption, incentive, or reduction, and restoring the maximum tax authorized by this chapter, within the ranges specified in CVMC 5.21.050 and 5.21.060; and provided, that the Council’s action does not otherwise constitute a tax “increase” within the meaning of Government Code Section 53750, subdivision (h).

B. The City Manager, in consultation with the City Attorney, may adopt administrative policies to promulgate rules, regulations, and procedures to implement and administer this chapter to ensure the efficient and timely collection of the taxes imposed by this chapter, including, without limitation, formulation and implementation of penalties and interest to be assessed for failure to pay the taxes as provided. Such policies shall be: (1) effective upon the date specified in the policy; (2) signed by the City Manager and City Attorney; and (3) posted on the City website by the City Clerk prior to implementation.

C. The City Manager shall annually audit the Cannabis taxes imposed by this chapter to verify that tax revenues have been properly collected and expended in accordance with the law.

D. Pursuant to California Constitution, Article XIII B, the appropriation limit for the City is increased to the maximum extent over the maximum period of time allowed under law to allow expenditure of all revenues generated by the taxes and fees imposed or authorized by this chapter. (Ord. 3434 § 1, 2018).