MEDICAL CANNABIS TAX MEASURE PLACED ON NOVEMBER 8, 2016 ELECTION BALLOT

The City Council has approved placing on the November 8th election ballot a measure that will create a tax on any legal medical cannabis businesses, which includes activities involving cultivation, nurseries, manufacturing and testing.  The measure does not in any way effect regulations allowing or restricting such businesses in the City.  If approved by a majority of voters, it will only establish a municipal tax on any such cannabis related businesses that are permitted under the laws of the City and State of California.

The proposed annual tax amount will be $25 per square foot for the first 5,000 square feet and $10 per square foot thereafter for cultivation; $5 per square foot for the first 5,000 square feet and $2.50 per square foot thereafter for nurseries; and $30,000 per facility for both manufacturing and testing.  For example, the maximum size cultivation facility allowed of 22,000 square feet would pay $295,000 annually.  The tax revenues would go to the City’s General Fund and can be used to pay off debt, fund Police services, pave streets, and fund any other general government functions that are paid for by the General Fund.

You may contact City Hall at 385-3281 if you have questions or would like additional information.