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Daly City, California, Measure UU, Marijuana Business Tax (November 2018)
| Measure UU: Daly City Marijuna Business Tax |
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| The basics |
| Election date: |
| November 6, 2018 |
| Status: |
 Approved
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| Topic: |
| Local marijuana tax |
| Related articles |
| Local marijuana tax on the ballot November 6, 2018 ballot measures in California San Mateo County, California ballot measures Local business tax on the ballot |
| See also |
| Daly City, California |
A marijuana business tax was on the ballot for Daly City voters in San Mateo County, California, on November 6, 2018. It was approved.
| A yes vote was a vote in favor of authorizing the city to tax marijuana businesses at rates of up to 10 percent of gross receipts to fund general city purposes. |
| A no vote was a vote against authorizing the city to tax marijuana businesses at rates of up to 10 percent of gross receipts to fund general city purposes. |
Election results
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Daly City, California, Measure UU, Marijuana Business Tax (November 2018) |
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| Result | Votes | Percentage | ||
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19,723 | 78.12% | ||
| No | 5,525 | 21.88% | ||
Text of measure
Ballot question
The ballot question was as follows:[1]
| “ |
Shall an ordinance be adopted by the City to establish up to a 10% tax on the gross receipts of all cannabis/marijuana businesses in Daly City if any cannabis/marijuana businesses are allowed in the city in the future, providing approximately $450,000 annually for general public services until ended by voters, requiring audits and oversight, with all funds only for Daly City?[2] |
” |
Impartial analysis
The following impartial analysis of the measure was prepared by the office of the Daly City City Attorney:
| “ |
The City of Daly City has placed Measure UU on the ballot to approve an ordinance adopting a business license tax on all cannabis (marijuana) businesses of up to 10% of gross receipts. The tax is a gross receipts tax on cannabis businesses only; it is not a sales tax imposed on individuals purchasing cannabis. All revenues resulting from the adoption of a business license tax on all cannabis businesses would be unrestricted revenues allocated to the City's general fund and thus can be used for any legitimate general governmental purpose. No portion of the revenues generated by this tax would go to the State of California. Currently cannabis businesses are not permitted in the City of Daly City. This proposed ordinance adopting a business license tax on all cannabis businesses would not change this. However, cannabis businesses could be allowed to legally operate in the City in the future 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 requires the City to permit cannabis businesses. If cannabis businesses are permitted in the City in the future, Measure UU allows the City Council to set a maximum tax rate, by resolution, on all cannabis businesses of up to 10% on gross receipts. For example, a cannabis business with gross receipts totaling $100,000 would pay up to $10,000 in taxes to the City. The proposed business license tax would apply to any business activity involving the distibution, delivery, dispensing, exchanging, bartering, or sale of either medical or non-medical cannabis or cannabis products including cultivation, planting, harvesting, transporting, delivering, manufacturing, compounding, converting, processing, preparing, labeling, storing, packaging, testing, dispensing, wholesaling, and/or retail sales of cannabis, products containing cannabis, and any ancillary products, whether or not done for profit. The tax would NOT apply to the legal cultivation of cannabis for personal use currently allowed under state law. Because the use of the tax revenues generated by the tax on cannabis businesses can be used for unrestricted general governmental purposes, it is classified as a "general tax." A "Yes" vote is a vote in favor of the tax, and thereafter would allow the City Council to establish a tax rate of up to 10% on gross receipts on all cannabis businesses if they are allowed to operate in the City in the future. A "No" vote is a vote against the tax. The ordinance will be passed if a majority of those voting on Measure UU vote "Yes." [2] |
” |
| —Daly City City Attorney[1] | ||
Full text
The full text of the measure is available here.
Path to the ballot
This measure was put on the ballot through a vote of the governing officials of Daly City, California.
See also
External links
Footnotes
- ↑ 1.0 1.1 San Mateo County Assessor-Clerk-Recorder and Elections, "November 6, 2018 Election Information," accessed October 8, 2018
- ↑ 2.0 2.1 Note: This text is quoted verbatim from the original source. Any inconsistencies are attributable to the original source.
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