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Arvin, California, Measure M, Marijuana Tax (November 2018)

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Local ballot measure elections in 2018
Measure M: Arvin Marijuana Tax
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The basics
Election date:
November 6, 2018
Status:
Approveda Approved
Topic:
Local marijuana tax
Related articles
Local marijuana tax on the ballot
November 6, 2018 ballot measures in California
Kern County, California ballot measures
City tax on the ballot
See also
Arvin, California

A marijuana tax was on the ballot for Arvin voters in Kern County, California, on November 6, 2018. It was approved.

A yes vote was a vote in favor of authorizing the city to enact a tax on marijuana businesses at rates of between 2 percent and 6 percent on retail and processing business and between $4 and $6 per square foot for cultivation.
A no vote was a vote against authorizing the city to enact a tax on marijuana businesses at rates of between 2 percent and 6 percent on retail and processing business and between $4 and $6 per square foot for cultivation.

Election results

Arvin Measure M

Result Votes Percentage

Approved Yes

1,037 56.60%
No 795 43.40%
Results are officially certified.
Source

Text of measure

Ballot question

The ballot question was as follows:[1]

Shall the measure establishing a tax of up to 6% of gross revenues on commercial cannabis business operations, excepting cultivation, and a tax of up to $6 per square foot of space used for commercial cannabis cultivation, as adjusted annually by CPI, all as described in the Ordinance enacting the tax, to raise approximately $150,000 to $300,000 annually for unrestricted purposes, including police, fire, and public improvements, be adopted?[2]

Impartial analysis

The following impartial analysis of the measure was prepared by the office of the Arvin City Attorney:

In 2016 Californiansvoted to legalize cannabis, and authorized a state tax on can­nabis businesses. However, to operate legally, cannabis businesses must obtain both state and local authorization. Cities retain the right to permit or ban cannabis business, and to tax cannabis businesses. The City of Arvin permits most com­mercial cannabis business, including cultivation, manufacturing, testing, distribu­tion, and retail delivery to operate in the City subject to certain restrictions. Outdoor cultivation and storefront retail are prohibited.

Measure M was placed on the ballot by the City Council. If passed by a majority of the voters, Measure M will establish taxes applicableto all cannabis businesses in the City, irrespective of whethersuch businesses are properly permitted pursuant to the City’s Municipal Code.

Measure M would impose the following tax rates on the various types of cannabis operations:

Cultivation Taxes are based on a calculation of the dollar per square foot of spaced used for cultivation as determined by the finance director (SQFT), as shown below:

Mixed Light Cultivation (e.g. greenhouse) $4 SQFT

Other Cultivation (e.g, outdoor cultivation) $6 SQFT

Other Taxes are based on a percentage of proceeds, being generally the gross revenue from the cannabis sales and services as shown below:

Testing 2%

Manufacturing Scale based on revenues with maximum of 6%

Retail Distribution 2%

Retail Sales 3.75%

Other not fitting in above 4%

The City Council may set the taxes loweror provide for exemptions but may not in­crease the tax without voter approval. The City may by exempt an operation from the tax in a development agreement. Penalties and interest would apply to all tax payments.

The tax is estimated to generate approximately $150,000 to 300,000 annually based on current projected operations to be opened in the City. None currently exist. Actual revenue depends on a number of factors, and could be higher or lower than this estimate.

The revenues generated from the taxes will be deposited into the City’s general fund and used for unrestricted general revenue purposes, such as public safety services, public works improvements, and other expenditures as determined by the City Council.

Regulations may be established bythe Finance Director relating to administration and enforcement of the tax.

A “Yes” vote means you support taxing commercial cannabis operations in the City.

A “No” vote means you oppose taxing commercial cannabis operations in the City.

This measure will take effect only if a majority of those voting on the measure cast a “Yes” vote at the November 6, 2018 general municipal election.[2]

—Arvin City Attorney[3]

Path to the ballot

See also: Laws governing local ballot measures in California

This measure was put on the ballot through a vote of the governing officials of Arvin, California.

See also

External links

Footnotes

  1. Kern County Elections, "2018 Measure Language," accessed October 2, 2018
  2. 2.0 2.1 Note: This text is quoted verbatim from the original source. Any inconsistencies are attributable to the original source.
  3. Voter's Edge, "City of Arvin Measure M," accesed October 8, 2018