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El Monte, California, Measure PC, Marijuana Business Tax (March 2020)

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El Monte Measure PC
LocalBallotMeasures Final.png
Election date
March 3, 2020
Topic
Local marijuana tax
Status
Approveda Approved
Type
Referral
Origin
Lawmakers


A marijuana business tax was on the ballot for El Monte voters in Los Angeles County, California, on March 3, 2020.[1] It was approved.

A "yes" vote supported authorizing a local marijuana business tax of 9% for retail sales, 6% for cultivation and manufacture, and 5% for distribution and testing to fund public safety, parks, and youth programs.
A "no" vote opposed authorizing a local marijuana business tax of 9% for retail sales, 6% for cultivation and manufacture, and 5% for distribution and testing to fund public safety, parks, and youth programs.


A two-thirds (66.67%) vote was required for the approval of Measure PC.

Election results

El Monte Measure PC

Result Votes Percentage

Approved Yes

7,680 71.48%
No 3,064 28.52%
Results are officially certified.
Source


Text of measure

Ballot question

The ballot question was as follows:[1]

To fund El Monte public safety, parks, recreation, and youth programs including: after-school programs; youth recreation; addiction prevention; community policing; and park improvements, shall a gross receipts tax be adopted for cannabis businesses up to 9% for retail, up to 6% for cultivation and manufacturing, and up to 5% for distribution and laboratory testing to raise approximately $3,500,000 annually?[2]

Impartial analysis

The following impartial analysis of the measure was prepared by the office of the El Monte City Attornegy:[1]

The City of El Monte City Council has submitted a special tax measure to its voters entitled: Cannabis Business Tax for Public Safety, Parks and Youth Programs ("Measure"). The Measure would add Chapter 3.30 (Cannabis Business Tax) to the City Code to impose a gross receipts tax on commercial cannabis businesses operating within the City ("Cannabis Tax").

As a special tax, Cannabis Tax proceeds would be deposited into a separate City account to be used solely and exclusively for:

- City public safety uses, services, and programs, including, but not limited to: the Transient Outreach Using Community Hands (TOUCH) homeless outreach program; the augmentation of special investigations related to violent and narcotic related criminal activity; the Teaching Obedience Respect Courage and Honor (TORCH) community-based program; the Volunteers Caring and Patrolling (VCAP) community-based program; public safety equipment (e.g. surveillance cameras); public safety staffing; youth diversion programs; drug abuse prevention and education; and

- City parks, recreation, and youth uses, services, and programs, including, but not limited to: after-school programming; parks maintenance and improvement; new park development; youth, teen, and adult sports; senior services; summer teen programs; and education and job training.

The Cannabis Tax would be due and payable by businesses in quarterly installments. The City would have authority to audit and examine all financial records. Interest and penalties would apply for nonpayment of the Cannabis Tax. The City would be required to publish an annual report indicating Cannabis Tax revenue, expenditures, and the status of projects funded by the Cannabis Tax.

For retailers of cannabis or cannabis products, the Measure would impose a 5% Cannabis Tax on gross receipt sales. The Measure would authorize the City Council to increase or decrease the Cannabis Tax rate for retailers, not to exceed 9%.

For commercial cannabis cultivation, the Measure would levy a 3% Cannabis Tax on gross receipts and authorize the City Council to increase or decrease the Cannabis Tax rate for cultivators, not to exceed 6%.

The Measure would establish a 3% Cannabis Tax on gross receipts for commercial cannabis manufacturing and authorize the City Council to increase or decrease the Cannabis Tax rate for manufacturers, not to exceed 6%.

For commercial cannabis distribution, the Measure would impose a 2% Cannabis Tax on gross receipts and authorize the City Council to increase or decrease the Cannabis Tax rate for distributors, not to exceed 5%.

The Measure would establish a 2% Cannabis Tax on gross receipts for commercial cannabis laboratory testing and authorize the City Council to increase or decrease the Cannabis Tax rate for laboratories, not to exceed 5%.

Two-thirds (66.67%) majority of votes cast is necessary to approve the Measure.

A "yes" vote would approve the Cannabis Tax.

A "no" vote would reject the Cannabis Tax.[2]

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 El Monte City Council.[1]

See also

External links

Footnotes

  1. 1.0 1.1 1.2 1.3 Los Angeles County Elections Office , "Sample Ballot Tool," accessed January 27, 2020
  2. 2.0 2.1 Note: This text is quoted verbatim from the original source. Any inconsistencies are attributable to the original source.