Banning, California, Measure O, Retail Marijuana Business Tax (November 2018)
| Measure O: Banning Retail Marijuana Business Tax |
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| The basics |
| Election date: |
| November 6, 2018 |
| Status: |
 Approved
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| Topic: |
| Local marijuana tax |
| Related articles |
| Local marijuana tax on the ballot November 6, 2018 ballot measures in California Riverside County, California ballot measures City tax on the ballot |
| See also |
| Banning, California |
A retail marijuana business tax measure was on the ballot for Banning voters in Riverside 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 retail marijuana businesses at an initial rate of 10 percent of gross receipts, with the possibility of an increase to 15 percent. |
| A no vote was a vote against authorizing the city to enact a tax on retail marijuana businesses at an initial rate of 10 percent and up to 15 percent of gross receipts |
Election results
|
Banning Measure O |
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|---|---|---|---|---|
| Result | Votes | Percentage | ||
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4,872 | 61.98% | ||
| No | 2,988 | 38.02% | ||
Text of measure
Ballot question
The ballot question was as follows:[1]
| “ |
To add between $1,168,800 and $1,558,400 in funding annually for unrestricted general revenue purposes such as police, fire, paramedics, parks and recreation, road improvements, capital maintenance, senior and youth programs, and other general municipal services, shall a measure imposing a 10% tax on the gross receipts of cannabis retail businesses in city (with the tax continuing until repealed, and the rate potentially increasing to 15%) be adopted?[2] |
” |
Impartial analysis
The following impartial analysis of the measure was prepared by the office of the Banning City Attorney:
| “ |
Measure O was placed on the ballot by the Banning City Council. If approved by the voters, Measure O would adopt Ordinance No. 1528 to impose a tax on commercial cannabis retail businesses. Measure O would impose an annual tax in an amount equal to ten percent (10%) of the cannabis retailer’s gross receipts. The City Council would have the ability to increase this tax up to fifteen percent (15%) of the retailer’s gross receipts. The cannabis business retail tax is a general tax enacted for general municipal purposes such as fire, paramedic and police protection; road repairs; youth programs; and parks and recreation. All tax proceeds would go into the City’s General Fund. Measure O requires a simple majority approval of the voters to pass and the taxes would be effective January 1, 2019. State law allows cities to determine whether to allow commercial cannabis businesses to operate in their jurisdiction. The City currently prohibits cannabis retail sales from occurring in the City. If the tax measure is adopted by the Banning voters, this would allow the City to tax retail cannabis sales if the City were to also adopt land use and regulatory ordinances allowing for the operation of cannabis retailers in specified areas of the City and subject to City-imposed restrictions and limitations. The commercial cannabis retail tax is not a sales or use tax imposed directly on cannabis users or consumers. It is a tax on the businesses that would sell cannabis or cannabis products in the City. The tax does not apply to the use of cannabis or the cultivation of cannabis for personal use as authorized under state law. This City tax would be in addition to a fifteen percent (15%) percent State excise tax that is imposed upon retail purchasers of all cannabis and cannabis products. The annual tax that the City would collect from cannabis retailers is dependent on the number of retail cannabis businesses that operate in the City each year. Measure O also includes requirements for the reporting and remission of the tax, penalties for late payment, refunds for overpayments, authority for the City to conduct audits of cannabis businesses, and an appeal procedure for cannabis businesses regarding their tax assessments. Measure O would allow the City Council to amend any of these regulatory provisions, but any increases in the tax rates or expansion of the tax would require future voter approval. A “Yes” vote on Measure O allows for the imposition of a City tax on commercial cannabis retail businesses, should the City Council adopt an ordinance allowing these businesses to operate in certain areas of the City and subject to municipal restrictions and limitations. A “No” vote is a vote against the imposition of a City tax on commercial cannabis retail businesses, should the City Council adopt an ordinance allowing these businesses to operate in certain areas of the City and subject to municipal regulation and limitations.[2] |
” |
| —Banning City Attorney[1] | ||
Full text
The full text of the measure is available here.
Path to the ballot
This measure was put on the ballot through a vote of the governing officials of Banning, California.
See also
External links
Footnotes
- ↑ 1.0 1.1 Voter's Edge, "Measure O," accessed October 7, 2018
- ↑ 2.0 2.1 Note: This text is quoted verbatim from the original source. Any inconsistencies are attributable to the original source.
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