City of Desert Hot Springs Marijuana Tax, Measure HH (November 2014)

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A City of Desert Hot Springs Marijuana Tax, Measure HH ballot question was on the November 4, 2014 election ballot for voters in the city of Desert Hot Springs in Riverside County, California. It was approved.

Upon approval, Measure HH imposed an annual tax of $25 per square foot for the first 3,000 square feet, and then $10 per square foot for the remaining space utilized in connection with the cultivation of marijuana for medical or recreational use to fund general city services.

Election results

Riverside County Measure HH
Result		Votes	Percentage
a Yes		2,102	67.76%
No		1,000	32.24%

Election results from Riverside County Elections Office

Text of measure

Ballot question

The question on the ballot appeared as:

“

Shall an ordinance implementing an annual tax of twenty-five dollars ($25.00) per square foot for the first 3,000 square feet and then ten dollars ($10.00) per square foot for the remaining space utilized in connection with the cultivation of marijuana for medical or casual/recreational use, for the purpose of raising revenue to fund general municipal services, be adopted?

”

Impartial analysis

The following impartial analysis was prepared for Measure HH:

“	This measure was placed on the ballot by a unanimous vote of the City Council after declaring a Fiscal Emergency. This measure proposes to impose a tax on the cultivation of marijuana for medical use and for casual/recreational use in the event such use is legalized or decriminalized in California. It will be an annual tax of $25.00 per square foot for the first 3,000 square feet and then $10.00 per square foot for the remaining space utilized in connection with the cultivation of marijuana for the above uses. The purpose of this tax is to raise revenue to fund general municipal services. The tax will not be charged to any patient or consumer. Payment of the tax shall solely be the responsibility of the person or entity authorized to legally cultivate marijuana within the City. “Space utilized in connection with the cultivation of marijuana” means any space or ground, floor or other surface area which is used during the marijuana germination, seedling, vegetative, pre-flowering, flowering and harvesting phases, including any space used for growing, planting, seeding, germinating, lighting, warming, cooling, aerating, fertilizing, watering, irrigating, topping, pinching, cropping, curing or drying marijuana or any space used for storing related products, supplies or equipment, no matter where such storage may take place or be located. The tax will be adjusted annually beginning on July 1, 2015, and July 1 of each succeeding year based on the Consumer Price Index. No adjustment shall decrease the tax, unless approved by the City Council. The tax must be remitted to the City biennially, on or before December 31 and June 30 every year. The City Council may repeal the tax, but it may not increase the amount of the tax or broaden the scope of the tax, without voter approval. Failure to pay the tax within 30 days after the due date will be subject to a 25% penalty. Additional penalties of 10% will be added on the first day of each calendar month thereafter if the tax remains unpaid -- up to a maximum of 100%. Nonpayment of the tax shall also constitute a public nuisance and infraction. The City will be authorized to examine all necessary records to ascertain the amount of any tax due during normal business hours, and such records must be maintained for at least seven (7) years. Payment of the tax shall not be construed as authorizing operation of any illegal business or of a legal business in an illegal manner, nor does payment of the tax imply or authorize that any activity connected with the cultivation, possession or provision of marijuana is legal unless otherwise authorized and allowed by the State of California and permitted by the City. This tax will take effect commencing upon the effective date of a City ordinance permitting the cultivation and distribution of marijuana for medical and/or recreational use within the City of Desert Hot Springs.	”
—Steven B. Quintanilla, Desert Hot Springs City Attorney

Support

Supporters

• Adam Sanchez, Mayor
• Joe McKee, City Council Member
• Jan Pye
• Scott Matas
• John H. Furbee

Arguments

The following was submitted as the official arguments in favor of Measure HH:

“	Measure “HH” is an annual tax of $25.00 per square foot for the first 3,000 square feet and then $10.00 per square foot thereafter for the cultivation of marijuana for medical use and casual/recreational use. The tax will help fund basic City services such as street sweeping; public parks and building maintenance; public safety; youth, adult and senior programs; and public infrastructure. Earlier this year, the City Council took drastic efforts to keep the City financially solvent and provide basic City services, at the expense of causing financial distress to many community nonprofit organizations which have traditionally provided valuable services to our seniors, children, business owners, veterans and residents. Even after the City Council reduced staff positions by more than 70%; reduced employee salaries by 22% to 35%; reduced employee benefits and holidays; cut several consulting contracts and reduced others by 20% - 30%; and, reduced support of local nonprofits that provide services to our residents, the City still had to cut an additional $1,600,000.00 in Fiscal Year 2013-14. These cuts were necessary to maintain a minimal “bare bones” budget to continue City operations through the current fiscal year or risk fiscal insolvency. The City’s need for additional revenue is immediate and will become ever more pressing during this fiscal year and next fiscal year. Your “YES” vote will show your support for protecting the interests, values, quality of life, and health & wellness of the residents of the City of Desert Hot Springs. We ask for your support by voting “YES” on Measure “HH”.	”
—Adam Sanchez, Joe McKee, Jan Pye, Scott Matas and John H. Furbee

Opposition

Opponents

• Robert M. Bentley, Former Police Commissioner, member, National Writer's Union - UAW Local 1981 AFL/CIO

Arguments

The following was submitted as the official arguments in opposition to Measure HH:

“	Triple Taxation - 120% + Sales Tax + This Tax Who is subject to this law? What are its provisions? We don’t know. We’re giving them carte blanche to enact anything they wish. Section 3.33.070 “The City Manager, or designee, and/or the City Council by ordinance, may promulgate regulations to implement and administer the provisions of this chapter.” Section 3.33.080 “PENALTIES... Postmarks will not be accepted as adequate proof of timely payment.” Why not? This tax is not voluntary. It requires sweeping surveillance of everyone. The costs will far outweigh any revenues. It requires intrusive inspections of all structures at any time without a warrant. Warrants are only needed if going to court. There is no recourse with this... none. It implies the use of drones, and advanced imaging technologies. It requires a new database of information on every person, unavailable to the public. How do they know you’re subject to the provisions until after they have inspected your premises, “books” and personal papers? It actually specifies books! Section 3.33.100 “Whenever it is necessary to examine any books or records, including tax returns, of any entity subject to the provisions this chapter... the City shall have the power and authority to examine such necessary books and records...” Section 3.33.090 says a violation is a “public nuisance”. Subject to a $1,000 a day fine and possible forfeiture of the property. They snuck in a “poison pill”, unlimited spending. Section 3. “APPROPRIATIONS LIMIT ...the appropriations limit for the City of Desert Hot Springs is increased to the maximum extent over the maximum period of time allowed under law...” Criminals, who pay no taxes will profit and prosper. Grandma can choose for herself. The veteran has earned it. They’re adults.	”
—Robert M. Bentley

See also

• City tax on the ballot
• Local marijuana tax on the ballot
• Riverside County, California ballot measures
• November 4, 2014 ballot measures in California

External links

Suggest a link

• Riverside County Vote Info website