Culver City, California, Measure A, Marijuana Business Tax (April 2018)
| Measure A: Culver City Marijuana Business Tax |
|---|
|
| The basics |
| Election date: |
| April 10, 2018 |
| Status: |
 Approved
|
| Topic: |
| Local marijuana tax |
| Related articles |
| Local marijuana tax on the ballot April 10, 2018 ballot measures in California Los Angeles County, California ballot measures City tax on the ballot |
| See also |
| Culver City, California |
A marijuana business tax was on the ballot for Culver City voters in Los Angeles County, California, on April 10, 2018. It was approved.
| A yes vote was a vote in favor of taxing commercial cultivation of marijuana at $12 per square foot and marijuana business receipts at no more than 1.5% for testing, 6% for manufacturing/distributing, 8% for medical retail, and 10% for adult use. |
| A no vote was a vote against taxing commercial cultivation of marijuana and marijuana business receipts. |
Election results
| Culver City Measure A | ||||
|---|---|---|---|---|
| Result | Votes | Percentage | ||
| Yes | 5,724 | 84.94% | ||
| No | 1,015 | 15.06% | ||
- Election results from Culver City Elections
Text of measure
Ballot question
The ballot question was as follows:[1]
| “ |
Shall Culver City adopt a measure funding fire/paramedic/police protection, road repairs, youth programs, parks/recreation and other general municipal services by taxing commercial marijuana cultivation at $12.00/square foot and gross receipts of marijuana businesses not exceeding: 6% manufacturing/distribution; 8% medical retail; 10% adult use retail; and 1.5% testing; raising approximately $1,200,000 annually, until ended by voters, requiring audits and compliance with laws protecting public health, safety and community standards?[2] |
” |
Impartial analysis
The following impartial analysis of the measure was prepared by the office of the Culver City City Attorney:
| “ | The Culver City City Council has placed Measure A on the ballot, which would approve an Ordinance enacting a Cannabis Business Tax on the gross receipts of adult-use (recreational) and medicinal cannabis businesses operating in the City, except cannabis cultivation businesses, which would be taxed on square footage of plant canopy. Cannabis is also known as marijuana.
If approved by voters, this Measure would amend the Culver City Municipal Code by adding a new Chapter 11.32 to Title 11, allowing the City to impose the tax. If the Measure is adopted, this business tax would be effective 10 days after City Council certification of election returns indicating the Measure's passage by a majority of voters casting votes on the Measure. The Cannabis Business Tax is a general tax enacted for general municipal purposes such as fire, paramedic and police protection; road repairs; youth programs; and parks and recreation. All tax proceeds would go to the City's General Fund. As defined in the proposed Measure, cannabis businesses are involved in the manufacture, distribution, delivery, sale, exchange, barter, cultivation, or testing of cannabis, This includes procurement, transporting, compounding, extracting, infusing, preparing, and wholesale or retail sales of cannabis and cannabis products. Measure A, if approved, would establish the following cannabis business tax rates:
Gross receipts is generally defined as the total amount received by cannabis businesses for sales of goods, wares or merchandise, or for the performance of any act or service for which a charge is made, without deduction for the cost of operating the business. Square footage of cannabis cultivation businesses is generally defined as the City-permitted maximum amount of "canopy" (areas occupied by any portion of a cannabis plant). Beginning in July 2020, the City Council may, by resolution, increase the tax rates, up to the maximums set in the Measure. Subsequent to a rate increase, the City Council may decrease that rate, if it does not fall below the minimums set in the Measure. The Ordinance includes provisions specifying how the City Tax Administrator would collect the tax, which would be paid by cannabis businesses to the City on a quarterly basis. Measure A also includes provisions for handling delinquencies, penalties, appeals and for enforcement of taxing provisions. Cannabis businesses may be subject to City audit, including review of accounts, tax returns and on-site operations. Such businesses are also required to comply with other general business tax requirements of the Culver City Municipal Code, as applicable. A "Yes" vote on Measure A would adopt the Cannabis Business Tax Ordinance. A "No" vote would not adopt the Cannabis Business Tax Ordinance. |
” |
| —Culver City City Attorney[3] | ||
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:[4]
- Jeff Cooper, mayor
- Meghan Sahli-Wells, council member
- Kelly Kent, CCUSD board member
- Crystal C. Alexander, Finance Advisory Committee chair
- Patricia D. Garcia, designer
Arguments in favor
Official argument
The following official argument was submitted in favor of the measure:[4]
| “ |
Voting Yes on Measure A will ensure that any cannabis business operating in the City of Culver City will pay its fair share of taxes. It is important that these types of businesses contribute to the well-being of our community for the privilege of operating here. A yes vote will amend the Culver City Municipal Code to add a Cannabis Business Tax to all businesses that sell, cultivate, deliver, distribute, test and manufacture cannabis in the City of Culver City. The passage of this measure will produce an estimated $1,200,000 in annual revenue for the city, revenue that can help fund public safety, parks, youth programs and pension liabilities. Help Culver City prosper by making sure that marijuana facilities pay their fair share. We respectfully ask you to join us in voting YES ON MEASURE A. [2] |
” |
Opposition
No official argument was submitted in opposition to Measure A. If you know of any arguments that belong here, please email us at editor@ballotpedia.org.
Path to the ballot
This measure was put on the ballot through a vote of the city council of Culver City, California, on November 13, 2017.
See also
External links
Footnotes
- ↑ Culver City, "Resolution No. 2017-R092," accessed February 1, 2018
- ↑ 2.0 2.1 2.2 Note: This text is quoted verbatim from the original source. Any inconsistencies are attributable to the original source.
- ↑ City of Culver City, "Impartial Analysis," accessed February 1, 2018
- ↑ 4.0 4.1 City of Culver City, "Argument and Rebuttal Form," accessed February 1, 2018
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