Chula Vista, California, Measure Q, Marijuana Business Tax (November 2018)
| Measure Q: Chula Vista 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 San Diego County, California ballot measures Local business regulation on the ballot |
| See also |
| Chula Vista, California |
A marijuana business tax was on the ballot for Chula Vista voters in San Diego County, California, on November 6, 2018. It was approved.
| A yes vote was a vote in favor of authorizing the city to tax marijuana businesses at the following rates: 5 to 15 percent of gross receipts or $5 to $25 per square foot for cultivation. |
| A no vote was a vote against authorizing the city to tax marijuana businesses at the following rates: 5 to 15 percent of gross receipts or $5 to $25 per square foot for cultivation. |
Election results
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Chula Vista, California, Measure Q, Marijuana Business Tax (November 2018) |
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| Result | Votes | Percentage | ||
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48,607 | 64.32% | ||
| No | 26,965 | 35.68% | ||
Text of measure
Ballot question
The ballot question was as follows:[1]
| “ |
Shall the measure to impose a business license tax of at least 5%, and up to 15%, of gross receipts on cannabis (marijuana) businesses, and at least $5, and up to $25, per square foot on space dedicated to cannabis cultivation, to raise an estimated $6,000,000 per year, until voters change or repeal it, to fund general City services, including enforcement efforts against cannabis business that are operating illegally, be adopted?[2] |
” |
Impartial analysis
The following impartial analysis of the measure was prepared by the office of the Chula Vista City Clerk:
| “ | If approved by a majority of the voters, Measure Q would impose a business license tax on all commercial cannabis activities within the City of Chula Vista. The City's Finance Director estimates that Measure Q would generate approximately $6 million per year in tax revenues. The City may spend such revenues for any lawful City purpose. The tax has not expiration date and would continue in effect unless modified or repealed by voters.
Voter approval of Measure Q would have the effect of repealing the City's existing ban on cannabis businesses and replacing it with regulations that allow such businesses to operate in the City, on specified terms. If voters don't approve Measure Q, the City's existing ban on commercial cannabis activities would remain in effect. Authority and Method of Assessment The Measure Q tax is authorized for levy under Aricle XIIIC of the California Constitutionand Article II of the City Charter. The Measure would impose an excise tax on all cannabis business activity conducted in the City. Cultivation businesses would be taxed at the rate in the rang of $5 to $25 per square foot of plant area. All other cannabis businesses (for example, storefront retail, delivery, manufacturing, distribution, and testing) would be taxed at a rate in the range of 5% to 15% of their gross receipts. From time to time, the City Council would set the actual tax rates to be imposed within these ranges. Voter approval would be required to impose a tax rate above or below these ranges. Effect on City's Exsisting Commercial Cannabis Ban In March of 2018 the City Council adopted an ordinance (the "Commerical Cannabis Ordinance") to allow for the licensing and operation of cannabis businesses within the City. The effectiveness of this ordinance was made expressly contingent upon voter approval of a tax on cannabis businesses, like the tax proposed by Measure Q. If Measure Q passes, the Commercial Cannabis Ordinance would become operative, and the City could begin issuing licenses to qualifying cannabis business as early as January 1, 2019. The Commercial Cannabis Ordinance contains detailed provisions regarding the types of cannabis businesses allowed, the number of licenses available, owner/operator qualifications, zoning, and minimum setbacks from sensitive uses, such as, schools and parks. If Measure Q is rejected, the Commercial Cannabis Ordinance would not take effect, and the City's exsisting ban on cannabis would continue. Cannabis deliveries from licensed dispensararies located outside the City would continue to be allowed. Payment and Enforcement Measure Q contains detailed provisions for the calculation, reporting and payment of taxes owed. The City Manager is authorized to administer and enforce its provisions, including the authorization to audit records, verify tax returns, and impose penalties for non-compliance. General Purpose Tax The City Council is submitting Measure Q to the voters as a "general purpose tax." This means that the City Council will have discretion to spend Measure Q revenues on any lawful municipal purpose. Although not legally bound to do so, the City Council has expressed its intent to spend a portion of Measure Q revenues to fund enforcement against illegal cannabis businesses. [2] |
” |
| —Chula Vista City Clerk[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 Chula Vista, California.
See also
External links
Footnotes
- ↑ 1.0 1.1 San Diego County Registrar of Voters, "Local Measures for November 6, 2018," accessed September 23, 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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