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City of Shasta Lake Medical Marijuana Sales Tax, Measure C (November 2014)

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A City of Shasta Lake Medical Marijuana Sales Tax, Measure C ballot question was on the November 4, 2014 election ballot for voters in the city of Shasta Lake in Shasta County, California. It was approved.

Measure C authorized the city to impose a 6 to 10 percent sales tax on the retail sale of medical marijuana. The tax was designed to start at 6 percent, but it could be increased to up to 10 percent, according to the city council's discretion.[1]

At the time of Measure C's approval, the city of Shasta Lake had two marijuana collectives, which would be the only establishments affected by the Measure C sales tax unless more collectives are established in the future. These collectives are called 530 Collective and Queen of Dragons.[2]

Jamie Kerr, owner of 530 Collective, initially proposed the idea for a sales tax on medical marijuana. The city's finance manager estimated that the tax would bring an additional $175,000 to $200,000 to the city's coffers, which amounts to a 60 percent increase in the city's sales tax revenue.[2]

Election results

City of Shasta Lake, Measure C
ResultVotesPercentage
Approveda Yes 2,022 73.18%
No74126.82%

Election results via: Shasta County Elections Office

Text of measure

Ballot question

The question on the ballot:[1]

To provide funding for general City services, shall an ordinance be adopted to impose a tax at a rate initially set at 6%, and not to exceed 10%, of gross receipts on Medical Marijuana Collectives and Cooperatives operating in the City of Shasta Lake?[3]

Impartial analysis

The following impartial analysis was prepared for Measure C:[1]

If approved by a majority of the voters this Measure would add Chapter 3.17 to the City of Shasta Lake Municipal Code (“Chapter”). The Chapter would impose upon marijuana collectives and cooperatives operating in the City of Shasta Lake a business tax of six-percent (6%) on the gross receipts of each collective or cooperative. This would be in addition to the sales taxes already paid by the collectives and cooperatives. In addition, each collective or cooperative would be required to have a business license. The Chapter would allow the City Council to lower the business tax or increase the business tax to an amount not to exceed ten-percent (10%) of the gross receipts. The Measure would authorize the City Council to amend, modify, change, or revise the Chapter as the City Council deems in the best interest of the City. The City Council, however, would not have authority to increase the tax to more than ten-percent (10%). The measure authorizes the City Manager to promulgate rules, regulations and procedures to implement and administer the Chapter to ensure efficient and timely collection of taxes imposed. The Measure also gives to the City Manager the right to examine and audit all of the books, business records and tax returns of collectives and cooperatives to verify the proper collection of taxes. The revenues collected by the City would constitute general revenues to be used for the general benefit of the City and its citizens.[3]

—John S. Kenny, City Attorney of Shasta Lake[1]

See also

External links

Footnotes