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Dixon, California, Marijuana Business Tax, Measure K (November 2016)

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Local ballot measure elections in 2016

Measure K: Dixon Marijuana Business Tax
LocalBallotMeasures Final.png
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
Solano County, California ballot measures
City tax on the ballot
See also
Dixon, California

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

A yes vote was a vote in favor of imposing a 15 percent tax on the gross receipts on marijuana businesses and dispensaries.
A no vote was a vote against imposing a 15 percent tax on the gross receipts on marijuana businesses and dispensaries.

Election results

Measure K
ResultVotesPercentage
Approveda Yes 4,635 64.91%
No2,50635.09%
Election results from Solano County Elections Office

Text of measure

Ballot question

The following question appeared on the ballot:[1]

To help fund general municipal services, including but not limited to police and fire protection services, parks, recreation and library facilities, shall an ordinance be adopted to impose a business license tax at a rate of up to fifteen percent (15%) of gross receipts on marijuana businesses and dispensaries, if marijuana businesses or dispensaries are approved to operate in the City of Dixon?[2]

Impartial analysis

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

Measure K has been placed on the ballot by the Dixon City Council. Measure K, if approved, would enact an Ordinance that amends the City of Dixon’s Municipal Code to authorize the Dixon City Council to impose a business license tax of up to fifteen percent (15%) of the gross receipts of any marijuana-related business.

The legalization of marijuana for recreational or other non-medical use will be included on the statewide ballot on November 8, 2016. In addition, under the Medical Marijuana Regulation and Safety Act (“MMRSA”), the State of California is currently developing a licensing system to govern the cultivation, processing, transporting, testing, and distribution of medical marijuana to qualified patients throughout the State. On January 12, 2016, in response to MMRSA, the City of Dixon adopted an ordinance prohibiting the cultivation and distribution of medical marijuana in order to retain local land use control of medical marijuana cultivation, dispensaries and distribution, and to allow additional time for the City Council to consider how to best address the changing legal status of marijuana use within City limits.

If Measure K is adopted by the qualified city voters on November 8, 2016, the City Council will be authorized (but not required) to impose a business license tax on marijuana businesses, broadly defined to include (1) all commercial cultivation distribution related to medical marijuana, if the current City prohibition on medical marijuana dispensaries is eventually lifted or amended, and (2) all commercial activities related to non-medical marijuana, if such use is legalized by California voters and such business are eventually allowed in the City. The City Manager will be authorized to establish procedures to collect the marijuana business license tax, and the Finance Director will be authorized to audit any businesses submitting such taxes to the City. The City will also be authorized to establish penalties and fines to enforce the payment of the marijuana business license taxes.

The proposed marijuana business license tax is a general tax because the proceeds from the tax would go into the City’s general fund, and would be used to fund general municipal services. The California Constitution requires that the electorate approve a general tax by a majority vote. Before the City Council can establish the tax rates for marijuana businesses, a majority of qualified City voters must approve the measure. If approved, the City Council would be authorized to impose a business license tax rate up to 15%, by way of resolution, on marijuana-related businesses only.

A 'YES' vote, by a majority of the voters, would approve proposed amendments to the Dixon Municipal Code to establish a business license tax of up to 15% of the gross receipts of a marijuana business in Dixon.

A'NO' vote would disapprove proposed amendments to the Dixon Municipal Code to establish a business license tax of up to 15% to be paid by an authorized marijuana business in Dixon.[2]

—Dixon 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:[1]

  • Unknown

Arguments in favor

Official argument

The following official argument was submitted in favor of the measure:[1]

Measure K has been placed on the ballot by the Dixon City Council. Measure K, if approved, would enact This election, California voters will determine whether to legalize marijuana for recreational and non-medical use. The statewide proposition, if approved, will authorize commercial cultivation and distribution. The proposition will also impose excise and cultivation taxes, which would be paid directly to the State of California and distributed through specified channels. Polls have indicated that up to 60% of California voters are in support of the proposition.

The undersigned City Councilmembers are committed to doing what is best for our community. If the statewide initiative passes, we will seek the community’s input before we make any decision to allow marijuana-related businesses to operate in our City. However, if such businesses are to be allowed, we must have a system in place to tax medical and non-medical marijuana at the local level.

The proposed marijuana business tax would authorize the Dixon City Council to impose a local tax of up to 15% on such businesses. If marijuana-related businesses are eventually allowed, the tax could provide significant revenue that would go directly to the City of Dixon general fund. The revenue from the marijuana tax could be used to fund any services provided by the City, such as police and public safety, libraries, parks, youth programs and public works.

We think it makes sense to adopt the marijuana business license tax now, rather than waiting two years until the next general election, or spending taxpayer money on a special election.

The undersigned members of the Dixon City Council therefore urge all Dixon voters to vote in favor of the proposed marijuana business license tax.

Join us in voting YES on MEASURE K.[2]

Opposition

Opponents

The following individuals signed the official argument against the measure:[1]

  • George Guynn Jr., President, Solano County Taxpayers Association

Arguments against

Official argument

The following official argument was submitted in opposition to the measure:[1]

The Dixon City Council rejected medical marijuana dispensaries when proposed in the past. The council’s latest attempt to prevent its citizens from acquiring this organic naturopathic herbal remedy was to ban the delivery of the substance into the city by providers. This council has done everything in its power to reject the will of the People of the State of California who voted for the Compassionate Care Act, Proposition 215 in 1996. Now they seek to profit off the illness of their citizens. It is time to “just say NO!" to politicians who can’t get enough of our money.

Where other communities are seeking 10% or less in taxes, the Dixon Council wants 15%. Medical insurance policies won’t cover this cost, so they are taking money from sick people to line their own pockets. Their compassion has been overcome by their greed.

They anticipate a new tax windfall, and naively assume that Proposition 64 will pass in November and recreational cannabis will be legalized statewide so they can make even more money. But this is by no means guaranteed.

We are already paying real estate and sales tax for the uses listed in the question. in addition, the city does not control the library in town and can’t use the money to fund another agency, Dixon Unified School District, which does control it.

Should city government be tied to the drug industry and get addicted to the revenue from the marijuana tax? Addiction to this revenue will soon find the council promoting the use of marijuana.

VOTE NO ON MEASURE Kl![2]

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 Dixon, California.

Recent news

The link below is to the most recent stories in a Google news search for the terms Dixon Local marijuana tax. 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 1.2 1.3 1.4 1.5 Solano County, "November 2016 Presidential General Election Measures," accessed October 30, 2016
  2. 2.0 2.1 2.2 2.3 Note: This text is quoted verbatim from the original source. Any inconsistencies are attributable to the original source.