City Council Passes Resolution to Include a Cannabis Tax Measure in the November Election

Update on July 25, 2022: Resolution 22-097 at the July 19, 2022 City Council Meeting. This Resolution amended and reinstated Resolution 22-087 to revise the ballot measure questions to reflect the maximum tax rates the City can impose on commercial cannabis activity. READ THE FULL RESOLUTION

Ballot Measure Language: Cannabis Business License Tax. Shall the measure to impose an annual cannabis (marijuana) business license tax of up to 8% of gross receipts from retail businesses, 2% of gross receipts from testing laboratories, and 6% of gross receipts from other cannabis businesses, with an additional tax on highly potent products, generating about $604,000 to $1.3 million a year, with all funds staying local and subject to audit, and effective until repealed by voters, be adopted?

Staff is now working on a regulation ordinance that will be up for review next.

Resolution 22-087 was passed by the City Council at the June 29, 2022 City Council Meeting. The July 19, 2022 City Council will also have a Cannabis item on the agenda to finalize the wording for the ballot measure. The Agenda Report for the July 19 Council Meeting will be posted at least 24 hours prior to the meeting.