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Cloverdale, California, Marijuana Business Tax, Measure P (November 2016)

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Local ballot measure elections in 2016

Measure P: Cloverdale Marijuana Business Tax
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The basics
Election date:
November 8, 2016
Status:
Approveda Approved
Topic:
Local marijuana tax
Related articles
Local marijuana tax on the ballot
November 8, 2016 ballot measures in California
Sonoma County, California ballot measures
City tax on the ballot
See also
Cloverdale, California

A marijuana tax measure was on the ballot for Cloverdale voters in Sonoma County, California, on November 8, 2016. It was approved.

A yes vote was a vote in favor of imposing a tax of up to 10 percent on gross receipts of all cannabis businesses, with no sunset date.
A no vote was a vote against imposing a tax of up to 10 percent on gross receipts of all cannabis businesses, with no sunset date.

Election results

Measure P
ResultVotesPercentage
Approveda Yes 2,742 73.77%
No97526.23%
Election results from Sonoma County Elections Office

Text of measure

Ballot question

The following question appeared on the ballot:[1]

To fund essential City services such as police, streets, parks, libraries, senior and youth programs, shall an ordinance be adopted imposing a tax on all permitted cannabis businesses in Cloverdale, at a rate of up to 10% on gross receipts, to raise estimated revenues of $90,000 per business, with no sunset date, subject to audits, with funds staying in Cloverdale, allowing for the tax rate to vary by business activity type?[2]

Impartial analysis

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

The City Council of the City of Cloverdale placed Measure P on the ballot asking voters to consider a Cannabis (marijuana) Business Tax of up to ten percent (10%) on gross receipts on all cannabis businesses. The tax is a gross receipts tax on cannabis businesses and is not a sales tax imposed on individuals purchasing cannabis.

Currently, cannabis businesses are not permitted in Cloverdale, except for limited delivery services delivering from outside of the City. However, cannabis businesses could be allowed in the City if the City Council approves changes to the City’s Municipal Code, if voters pass an initiative to allow cannabis businesses in the City, or if the state Legislature takes action requiring the City to permit cannabis businesses.

If cannabis businesses are permitted in the City, Measure P allows the City Council to set a maximum tax rate, by resolution, on all cannabis businesses of up to ten percent (10%) on gross receipts. For example, a cannabis business with gross receipts totaling $100,000 would pay up to $10,000 in taxes. The Cannabis Business Tax revenues would be collected by the City monthly.

Measure P allows the City Council to set different tax rates for different types of cannabis businesses, so long as the tax rate does not exceed ten percent (10%) of a business’ gross receipts. For example, a cannabis testing business could be taxed at a different rate than a dispensary.

The Cannabis Business Tax would apply to any business activity involving the distribution, dispensing, exchanging, bartering or sale of either medical or non-medical cannabis, including cultivation, planting, harvesting, transporting, manufacturing, processing, labeling, packaging, testing and/or retail sales of cannabis, cannabis products, whether or not done for profit. The Cannabis Business Tax would not apply to the cultivation of cannabis for personal use allowed under the City’s Municipal Code, so long as such cannabis is not sold, bartered, or exchanged for anything of value in return.

Because Measure P does not limit the use of Cannabis Business Tax revenue, it is a “general tax,” not a “special tax” restricting the funds to specific purposes. The City could use the funds for any legitimate governmental purpose. The tax would continue until repealed by the voters or the City Council.

A “yes” vote on Measure P would approve the Cannabis Business Tax and authorize the City Council to establish a tax rate of up to ten percent (10%) on gross receipts on cannabis businesses if they are allowed to operate in the City in the future. A “no” vote would reject the Cannabis Business Tax. Measure P would be approved if it received a simple majority of “Yes” votes.

The above statement is an impartial analysis of Measure P. If you desire a copy of the ordinance or measure, please call the City Clerk’s office at (707) 894-2521 or lmoore@ci.cloverdale.ca.us and a copy will be mailed at no cost to you.[2]

—Cloverdale City Attorney[1]

Full text

The full text of the measure is available here.

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 Cloverdale, California.

Recent news

The link below is to the most recent stories in a Google news search for the terms Cloverdale Local marijuana. These results are automatically generated from Google. Ballotpedia does not curate or endorse these articles.

See also

External links

Footnotes

  1. 1.0 1.1 Sonoma County Registrar of Voters, "Consolidated General Election Sample Ballot and Voter Information Pamphlet," accessed November 3, 2016
  2. 2.0 2.1 Note: This text is quoted verbatim from the original source. Any inconsistencies are attributable to the original source.