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La Mesa, California, Measure V, Marijuana Business Tax (November 2018)

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Local ballot measure elections in 2018
Measure V: La Mesa Marijuana Business Tax
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The basics
Election date:
November 6, 2018
Status:
Approveda Approved
Topic:
Local marijuana tax
Related articles
Local marijuana tax on the ballot
November 6, 2018 ballot measures in California
San Diego County, California ballot measures
Local business regulation on the ballot
See also
La Mesa, California

A marijuana business tax was on the ballot for La Mesa voters in San Diego 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 6 percent of gross receipts and up to $10 per square foot of cultivation.
A no vote was a vote against authorizing the city to tax marijuana businesses at rates of up to 6 percent of gross receipts and up to $10 per square foot of cultivation.

Election results

La Mesa, California, Measure V, Marijuana Business Tax (November 2018)

Result Votes Percentage

Approved Yes

15,862 73.26%
No 5,789 26.74%
Results are officially certified.
Source

Text of measure

Ballot question

The ballot question was as follows:[1]

To fund general municipal expenses including police and fire, roads, and recreation; shall the City tax cannabis businesses at annual rates not to exceed $10.00 per canopy square foot for cultivation and 6% of gross receipts for all other businesses, generating an estimated $1,500,000 to $2,000,000 annually; authorize the City Council to implement this tax by resolution or ordinance; and levy this tax until repealed by the voters or the City Council?[2]

Impartial analysis

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

On July 10, 2018, the City Council of the City of La Mesa (“Council”) unanimously approved submission of an ordinance for voter approval to establish a Cannabis Business Tax (“Tax”). The Tax would apply to all commercial cannabis (marijuana) businesses that operate in La Mesa.

If passed, Measure V would authorize the Council to implement the Tax by resolution or amendment of the La Mesa Municipal Code for the purpose of imposing a business tax on all commercial cannabis businesses. Monies from the Tax would be deposited into the City’s General Fund to be used for general governmental purposes, including police and fire protection, road repairs, neighborhood parks, and other community services; as well as, shutting down illegal cannabis dispensaries and regulating legal medical cannabis businesses authorized by La Mesa voters in 2016. The Tax is estimated to generate $1,500,000 to $2,000,000 annually for the City of La Mesa.

The amount of the Tax would depend on the type of business operations; for example, $1 to $10 per square foot of canopy space for commercial cannabis cultivation (nursery) and up to 6% of gross receipts for all other cannabis businesses. The Tax would be imposed only on commercial cannabis businesses, and is not a sales tax imposed on qualified patients, primary caregivers or other persons who purchase or otherwise acquire cannabis for their personal use, including personal cultivation.

Measure V authorizes the Council to annually adjust the rates of the Tax, so long as the adjusted rates do not exceed the maximum rates approved by the voters. The initial rate of the Tax on retail sales to a customer with a valid California Department of Public Health Medical Marijuana Identification Card would be 0%.

Presently, in La Mesa, medical cannabis retailers (dispensaries), cultivators, and manufacturers (production of items such as edibles) are permitted by conditional use permit. However, all other medical cannabis businesses and recreational (adult use) cannabis businesses are prohibited in La Mesa. Any prohibited cannabis businesses legalized by a change in the law would also be subject to the Tax.

Measure V requires approval of a majority of the voters. A “yes” vote for Measure V will establish a Cannabis Business Tax in La Mesa. A “no” vote against Measure V will not establish such a tax. If adopted, the Tax would be levied until repealed by the voters or the Council.[2]

—La Mesa City Attorney[3]

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 La Mesa, California.

See also

External links

Footnotes

  1. San Diego County Registrar of Voters, "Local Measures for November 6, 2018," accessed September 23, 2018
  2. 2.0 2.1 Note: This text is quoted verbatim from the original source. Any inconsistencies are attributable to the original source.
  3. Voter's Edge, "Measure V," accessed September 24, 2018