Council to Consider Cannabis Tax Measure for November 2022 Ballot

At its meeting on June 29, 2022 at 7 p.m., the Monterey City Council will consider a Cannabis Tax Measure for the November 2022 General Election for Monterey citizens to consider.

If voters approve the proposed measure, cannabis retail businesses would pay an initial tax of 4%, cannabis testing lab businesses would pay 1%, and all other cannabis businesses would pay 6%. The measure would allow the City Council to increase the tax to up to 8% for cannabis retail businesses, 2% for testing laboratories, and 8% for all other businesses. In addition to these tax rates, the measure also allows higher taxes on cannabis-infused beverages containing natural or artificial sweeteners and on high potency products (those with more than 17% THC) to discourage products with public health risks.

The proposed rates are mostly aligned with other cannabis retail tax rates in the region which range from 4.5% in unincorporated Monterey County to 6% in Santa Cruz County. Some cities, such as Seaside, have voter-approved ordinances authorizing a cannabis retail tax of up to 10%, with a lower rate adopted by City ordinance.

For a copy of the agenda report and recommendation, please visit: https://isearchmonterey.org/OnBaseAgendaOnline/Meetings/ViewMeeting?id=5142&doctype=1