As the City of Turlock continues to struggle with finding enough money to staff and retain public safety personnel, just 10 miles up the road the City of Ceres is wrestling with where to spend an extra $1.7 million in new cannabis revenues.
“Fillmore voters will have the chance to decide in November whether their city will become the second in Ventura County to allow commercial-scale marijuana cultivation…If approved by a majority of voters, the measure would allow medical marijuana to be grown indoors, with a city permit. It would prohibit all other types of marijuana businesses — including non-medical cultivation, outdoor cultivation, manufacturing of cannabis products, testing, distribution and retail sales.”
Some local jurisdictions across California have realized that to stay competitive and to bring, and to keep, consumers out of the black market, they need to lower their ambitiously high cannabis tax rates. Among them is Grover Beach in San Luis Obispo County.
Effective May 7, 2018, Grover City reduced its commercial cannabis tax rate from 10% to 5% for recreational retail and to 3% for cannabis manufacturers, distributors and other cannabis businesses. It also reduced its cannabis cultivation tax from $25 per square foot to $5 per square foot based on floor area.
Source: City of Grover Beach
Metrc, the software that Maryland uses to track cannabis purchases at dispensaries across the state, temporarily stopped working Thursday afternoon and again on Friday, leaving retailers unable to transact and patients incapable of purchasing prescribed marijuana and other cannabis products.
More cities are looking to impose cannabis taxes, even some that currently do not allow commercial recreational cannabis. The Simi Valley, Thousand Oaks and Oxnard city councils have placed measures on their cities’ Nov. 6 ballots that will ask voters whether marijuana businesses in their respective towns should be taxed.
Source: Simi Valley, Thousand Oaks, place pot business tax measures on November ballots
(Photo: Associated Press)
Uruguay has always faced some tall hurdles to become the first country in the world to fully legalize recreational cannabis. The landmark 2013 reform was aimed at taking revenue streams from the sale of the soft drug out of the hands of organized crime while also improving public health by bringing users out of the shadows.
Local Jurisdictions Continue to Look to Cannabis Taxes to Fund Basic Programs
Many local governments in California continue to feel pinched by mounting expenses and decreased revenue from state and federal programs. While schools crumble and roads need repair, voters have refused to enact new taxes to fix local infrastructure and deal with crime and educational problems.
All Cannabis Tax Measures Pass Easily
Voters seem eager, however, to enact new cannabis taxes. The primary election in California on June 5, 2018 had several cannabis-related measures that passed easily:
- Measure T, Santa Barbara County passed with 75.7% of the votes. The measure gives the county supervisors the power to pass tax ordinance. The rate is not yet specified and will be set by any new ordinance.
- Measure B-18, San Luis Obispo County passed with 78.3% of the votes. This measure allows for a 4% business tax on cannabis gross receipts starting in July 2018. The tax will increase 2% ever year until the tax is a maximum of 10%.
- Measure CC in Pasadena passed with 59.9% the votes. The measure allows for six new dispensaries within city limits.
- Measure DD in Pasadena passed with 75.5% of the votes. This measure allows the city to collect a 6% business tax on retail cannabis sales, and a 4% on other cannabis-related businesses.
While cannabis taxes sail through elections, other tax measures aren’t so lucky. Lake County voters took down Measure G, with only 38.3% of the voters approving the proposed 1.5% increase in sales and use tax.