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Cotati, California, Marijuana Tax, Measure G (November 2017)
| Measure G: Cotati Marijuana Tax |
|---|
|
| The basics |
| Election date: |
| November 7, 2017 |
| Status: |
 Approved
|
| Topic: |
| Local marijuana tax |
| Related articles |
| Local marijuana tax on the ballot November 7, 2017 ballot measures in California Sonoma County, California ballot measures City tax on the ballot |
| See also |
| Cotati, California |
A marijuana tax measure was on the ballot for Cotati voters in Sonoma County, California, on November 7, 2017. It was approved.
A yes vote was a vote in favor of authorizing the city to levy an additional tax on the one marijuana dispensary allowed in the city and any other marijuana businesses authorized in the future. The measure was designed with the following initial and maximum tax rates:
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A no vote was a vote against authorizing the city to levy an additional tax on the one marijuana dispensary allowed in the city and any other marijuana businesses authorized in the future. The measure was designed with the following initial and maximum tax rates:
|
Measure G was designed to allow Cotati to levy a tax on the city's marijuana dispensary (and any future marijuana-related businesses) in place of the general business tax. City officials estimated the revenue from Measure G at $300,000 yearly, which is designated to go into the city's general fund.[1]
Election results
| Measure G | ||||
|---|---|---|---|---|
| Result | Votes | Percentage | ||
| Yes | 972 | 78.77% | ||
| No | 262 | 21.23% | ||
- Election results from County of Sonoma Registrar of Voters
Text of measure
Ballot question
The ballot question was as follows:[1]
| “ |
Shall an ordinance be adopted authorizing a City of Cotati cannabis business tax on cannabis cultivation businesses up to $25 per square foot of cultivation area (annually adjusted by CPI) or 8% of gross receipts, and on cannabis manufacturing, distribution and dispensary businesses up to 8% of gross receipts, to maintain local City services and address cannabis industry impacts with all funds subject to annual audits, generating approximately $300,000 in revenue per year until repealed?[2] |
” |
Impartial analysis
The following impartial analysis of the measure was prepared by the office of the Cotati City Attorney:
| “ |
The Cotati City Council has placed Measure G on the ballot, asking voters to consider a Cannabis (marijuana) – specific Business Tax (the “Ordinance”) on certain cannabis-related businesses operating within City limits. The Ordinance will not take effect unless a majority of those voting votes “yes.” Currently, businesses operating in Cotati – including cannabis businesses – must pay a general business tax. One cannabis dispensary is currently allowed to operate in the City. The Ordinance does not authorize any new cannabis businesses, but authorizes imposition of the tax should those businesses be allowed in the future. The Ordinance authorizes the Council to add Chapter 5.30 to the Municipal Code and establish an excise tax on the following types of cannabis businesses in Cotati: commercial cannabis cultivators (including nurseries), manufacturers, distributors, and retailers (including dispensaries). In turn, these cannabis businesses will be exempt from the City’s general business tax. The Ordinance does not impose any sales or use taxes directly on cannabis users or consumers. The excise tax does not apply to the use of cannabis or the cultivation of cannabis for personal use as authorized by state law. The Council can set and adjust the excise tax rate up to the maximum tax rate stated in the Ordinance. For commercial cultivation, the annual tax rate cannot exceed $25 per square foot of cannabis cultivation area (adjusted annually by the CPI) or 8% of annual gross receipts. For cannabis manufacturers, distributors and retailers, the annual tax rate cannot exceed 8% of annual gross receipts. Initial rates will be: 2% of gross receipts or $5.00 per square foot of cultivation area for cultivators, 1% of gross receipts for manufacturer, 3% of gross receipts for retailers (exempting medical sales), and 0% for distributors. Cannabis testing labs will pay the City’s general business tax rather than the cannabis business tax. The initial tax rates set by Council resolution are for three years. The Ordinance allows the Council to adjust the rates periodically as long as they do not exceed the maximum rates. The Ordinance requires all persons engaging in a cannabis business in the City - whether subject to the cannabis business tax or the general business tax - to register with the City for purposes of tax collection, and includes procedures for tax reporting, remittance, enforcement, and appeals. The tax imposed by the Ordinance is a general tax under state law. All taxes collected under the Ordinance will be placed in the City’s general fund and may be used for any City purpose. The amount of revenue to be generated by the tax is estimated at $300,000.[2] |
” |
| —Cotati City Attorney[1] | ||
Full text
The full text of the measure is available here.
Support
Supporters
The following individuals signed the official argument in favor of the measure:
- Cotati Mayor Susan Harvey
Arguments in favor
The following official argument was submitted in favor of the measure:[3]
| “ |
Measure G will allow Cotati to impose a tax on cannabis businesses operating within the City now that the State has enacted the Medical Cannabis Regulation and Safety Act, and the voters have approved Proposition 64, the Adult Use of Marijuana Act. Measure G will ensure that the City has the resources we need to regulate and properly support the cannabis industry without reducing investment in core city services, such as public safety and maintaining streets and parks. Measure G is a proposed tax on cannabis businesses and not a sales or property tax. Over 40 Cities and Counties in California have enacted similar taxes for cannabis businesses to address the inherent strain on the local agencies’ budgets resulting from cannabis legalization. We have identified areas where additional resources are needed to support this new industry. These include increased public safety needs, business inspections to ensure safety and environmental quality, and audits of operations and finances. Measure G is fiscally responsible, timely, and prudent. Over the past year, the City of Cotati has addressed critical issues such as housing, police staffing, street condition and traffic safety and has made key investments from a limited pool of resources. By proactively establishing a tax on cannabis businesses, the City’s budget will be protected from any new or unexpected costs associated with cannabis legalization and protect City resources for investment in other key priorities. Measure G was carefully crafted to find the right balance between generating the revenue needed while providing certainty for this emerging industry. Adoption of a fair taxation framework will encourage cannabis businesses to join the regulated market, ensuring protection for consumers, the environment, and public health. With unanimous support from the Cotati City Council, we respectfully request a Yes vote on Measure G.[2] |
” |
| —Susan Harvey | ||
Opposition
If you know of endorsements or arguments that should be posted here, please email editor@ballotpedia.org.
Path to the ballot
This measure was put on the ballot through a unanimous vote of the Cotati City Council.
Recent news
The link below is to the most recent stories in a Google news search for the terms Cotati Local marijuana tax Measure G. These results are automatically generated from Google. Ballotpedia does not curate or endorse these articles.
See also
External links
Footnotes
- ↑ 1.0 1.1 1.2 Sonoma County Elections Office, "Polling Place/Sample Ballot Look Up," accessed September 22, 2017
- ↑ 2.0 2.1 2.2 Note: This text is quoted verbatim from the original source. Any inconsistencies are attributable to the original source.
- ↑ Voters Edge, "City of Cotati Measure G," accessed October 24, 2017
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