Your feedback ensures we stay focused on the facts that matter to you most—take our survey.

Fresno, California, Measure A, Marijuana Business Tax (November 2018)

From Ballotpedia
Jump to: navigation, search
Local ballot measure elections in 2018
Measure A: Fresno Marijuana Business Tax
LocalBallotMeasures Final.png
The basics
Election date:
November 6, 2018
Status:
Approveda Approved
Majority required:
66.67%
Topic:
Local marijuana tax
Related articles
Local marijuana tax on the ballot
November 6, 2018 ballot measures in California
Fresno County, California ballot measures
Local business tax on the ballot
See also
Fresno, California

A marijuana business tax was on the ballot for Fresno voters in Fresno County, California, on November 6, 2018. It was approved.

A yes vote was a vote in favor of taxing marijuana businesses at rates of up to $12 per canopy square foot and up to 10 percent of gross receipts for medical dispensaries and other marijuana businesses, with revenue dedicated to the city's general fund an a community benefit fund.
A no vote was a vote against taxing marijuana businesses at rates of up to $12 per canopy square foot and up to 10 percent of gross receipts for medical dispensaries and other marijuana businesses, with revenue dedicated to the city's general fund an a community benefit fund.

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

Election results

Fresno, California, Measure A, Marijuana Business Tax (November 2018)

Result Votes Percentage

Approved Yes

83,954 70.96%
No 34,366 29.04%
Results are officially certified.
Source

Text of measure

Ballot question

The ballot question was as follows:[1]

To fund unrestricted general revenue purposes, including combating gangs, drug abuse, human trafficking and homelessness, police, fire, roads, and parks (90%) and fund a Community Benefit Fund allocated as recommended by a citizens' commission (10%), shall the measure to tax cannabis cultivation up to $12 per canopy square-foot and up to 10% of gross receipts for medical dispensaries and all other cannabis businesses, generating up to $10 million annually until repealed, be adopted?[2]

Impartial analysis

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

Measure A has been placed on the ballot by the City Council of the City of Fresno (City). If approved by voters, the measure would authorize a new Cannabis Business License Tax (Tax) of: (1) up to $12 per canopy square-foot for cannabis cultivation; and (2) up to 10% of gross receipts for medical dispensaries and all other cannabis businesses in the City. This measure would establish maximum tax rates for commercial cannabis business operations, with operative tax rates to be set by the City Council. Any increase to maximum tax rates would require further voter approval. The measure would adopt regulations for reporting and remission of the Tax, penalties for late payment, authority of the City to conduct audits of cannabis businesses, and an appeal procedure for disputes regarding tax assessments. The measure would also create a nine-member Community Benefit Commission appointed by the Mayor and Councilmembers to provide input on expending a portion of tax proceeds.

Currently, the Fresno Municipal Code does not allow commercial cannabis businesses, except laboratory testing facilities under limited circumstances, to operate within City limits. The Tax would not change this. This measure would create a specific mechanism for taxing any commercial cannabis businesses authorized to operate in the City in the future. If approved, the Tax would apply to any business activity involving cultivating, manufacturing, processing, storing, laboratory testing, labeling, packaging, transporting, distributing, delivering, or sale of cannabis or cannabis products within the City. The Tax would not apply to the legal cultivation of cannabis for personal use allowed under state law.

If enacted by the voters, Measure A would raise revenue for specific and general governmental purposes and not for the specific purpose of regulating cannabis businesses. The City has estimated that the taxes proposed by Measure A would raise up to $10 million annually. Ten percent of tax proceeds would fund a Community Benefit Fund which would be allocated with input from the Community Benefit Commission. Ninety percent of the proceeds would fund vital city services, including combating gangs, drug abuse, human trafficking, and homelessness, as well as fund police, fire, roads, and parks.

The Tax would continue until repealed by the voters or by the City Council. [2]

—Fresno 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]

  • Kerri Donis, chief, Fresno Fire Department
  • Jerry Dyer, chief, Fresno Police Department
  • Paul Caprioglio, Fresno City Council
  • Oliver Baines, Fresno City Council
  • Clint Olivier, Fresno City Council

Arguments in favor

Official argument

The following official argument was submitted in favor of the measure:[4]

We urge you to vote YES on Measure A to combat gang violence, drug abuse, human trafficking and homelessness, to fund City infrastructure and create a Community Benefit Fund.

Measure A will impose a Cannabis Business License Tax on marijuana businesses in the City of Fresno. Over 100 illegal black market marijuana businesses currently operate in Fresno and none of them pay a penny in business license tax. Measure A will change that and use this new revenue to make Fresno a safer and better city.

All of the money from this tax will stay in Fresno for the benefit of Fresno. Only marijuana businesses will pay this tax.

90% of revenues will pay for police, fire, parks, roads and other core City services.

10% will go into a Community Benefit Fund. A nine-member appointed Citizens' Commission representing the diversity of Fresno will recommend how and where the Community Benefit Fund invests in our future.

Measure A will provide funding to hire more police officers and firefighters, including officers for a powerful new Drug Task Force to crack down hard on human traffickers, gangs and drug dealers who sell heroin, methamphetamine and opioids in our community.

Measure A will provide money to improve our parks and provide programs for children and senior citizens.

Measure A will provide revenue to repair our streets and fix potholes.

Measure A means marijuana businesses will pay for their impacts on our community. By proactively establishing this tax, the City's budget will be protected from any new or unexpected costs associated with cannabis regulation.

Whether you agree with the legalization of marijuana or not, it is already here, so it is crucial that we tax this new industry to ensure compliance and to eradicate the black market.

Please vote Yes on Measure A![2]

Opposition

No official argument was filed in opposition to Measure A.

Path to the ballot

See also: Laws governing local ballot measures in California

This measure was put on the ballot through a 5-1 vote of the Fresno City Council on June 14, 2018.

See also

External links

Footnotes