TO:
Honorable Mayor and Members of the City Council
THROUGH:
Bruce Moe, City Manager
FROM:
Steve S. Charelian, Finance Director
Cynthia F. Mickschl, Revenue Services Manager
SUBJECT:Title
Consider Hardship Extensions to Tobacco Retailers Requesting Additional Time to Comply with Urgency Ordinance No. 19-0016-U Which Prohibits the Sale of Electronic Smoking Devices, Vaping Products, and Flavored Tobacco (Finance Department Charelian).
CONSIDER EXTENSIONS
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Recommended Action
RECOMMENDATION:
Staff recommends that the City Council consider hardship extensions requested by four tobacco retailers additional time to comply with Ordinance No. 19-0016-U.Body
FISCAL IMPLICATIONS:
The fiscal implications of the requested extensions is difficult to calculate because City revenues derived from such sales are from business license taxes and sales taxes. Neither tax is reported at the product level; rather, businesses report their total sales, which also includes sales of other products that are not the subject of Ordinance No. 19-0016-U. Thus, the financial implications of a decision to grant or deny an extension request to four applicants, albeit difficult to quantify, is minimal.
BACKGROUND:
On November 5, 2019, City Council adopted Ordinance No. 19-0016-U prohibiting the sale of electronic smoking devices, vaping products and flavored tobacco in the City.
The ordinance contains a hardship extension provision, allowing businesses an opportunity to demonstrate the extent to which they are affected by the ordinance. Any tobacco retailer that wished to continue to sell electronic smoking devices, vaping products or flavored tobacco after the ordinance's effective date could apply for a hardship extension. Pursuant to the ordinance, the City Council shall grant a hardship extension upon making a finding that the denial of the extension would result in the applicant being deprived of all economically viab...
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