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Long Beach, California, Marijuana Business Taxes, Measure MA (November 2016)
| Measure MA: Long Beach Marijuana Business Taxes |
|---|
|
| The basics |
| Election date: |
| November 8, 2016 |
| Status: |
 Approved
|
| Topic: |
| Local marijuana tax |
| Related articles |
| Local marijuana tax on the ballot November 8, 2016 ballot measures in California Los Angeles County, California ballot measures City tax on the ballot |
| See also |
| Long Beach, California |
A marijuana business taxation measure was on the ballot for Long Beach voters in Los Angeles County, California, on November 8, 2016. It was approved.
| A yes vote was a vote in favor of imposing a tax on gross receipts of 6-8 percent for medical marijuana dispensaries, 10-12 percent for non medical dispensaries, and 6-8 percent on marijuana manufacturers, and a tax of $12 to $15 per square foot for marijuana cultivation. |
| A no vote was a vote against imposing marijuana business taxes. |
Election results
| Measure MA | ||||
|---|---|---|---|---|
| Result | Votes | Percentage | ||
| Yes | 103,086 | 68.25% | ||
| No | 47,955 | 31.75% | ||
- Election results from Los Angeles County Elections Office
Text of measure
Ballot question
The following question appeared on the ballot:[1]
| “ |
To fund public safety, 9-1-1 emergency response, police officers, homelessness, and general City services, shall Long Beach update gross receipts tax rates between 6-8% for medical marijuana dispensaries, 8-12% for nonmedical marijuana dispensaries, 6-8% for processing, distributing, transporting or testing marijuana/related products and a square foot tax between $12-15 for marijuana cultivation, raising approximately $13 million annually, requiring annual expenditure reports, until ended by voters?[2] |
” |
Impartial analysis
The following impartial analysis of the measure was prepared by the office of the Long Beach City Attorney:
| “ |
Voter approval of Measure MA would amend the Long Beach Municipal Code to update the City’s business license tax on medical and non-medical marijuana businesses, if such businesses should be legalized. This is a “general tax” that must be approved by a majority of voters. Revenues from the tax would be deposited in the City’s general fund to pay for general City services, such as public safety, 9-1-1 emergency response, police officers and homeless assistance programs. Currently, Long Beach has a tax on medical and non-medical marijuana (i.e., recreational) businesses which was approved by voters in 2014. It established a maximum 10% gross receipts tax and a maximum $50 per square foot cultivation tax. This tax currently covers marijuana dispensaries, cultivators, manufacturers, testers and distributors. A marijuana related voter-petition initiative measure is also on this ballot (Long Beach Measure MM), which would reduce the City’s maximum gross receipts tax rate from 10% to 6%, and limit collection of this tax to retail marijuana dispensaries. Marijuana manufacturers, testers and distributors (who do no retail) would pay no gross receipts tax – only the minimum $1,000 annual tax. Measure MM would also reduce the cultivation tax to a maximum of $10 per square foot. Measure MA was placed on the ballot by the City Council as a competing measure in order to propose alternative marijuana tax rates to those in Measure MM. Measure MA, if approved, would update these tax rates to:
All marijuana businesses would still be required to pay a minimum tax of one-thousand dollars ($1,000.00) annually. The taxes set by Measure MA could be increased or decreased, within the established ranges, by the City Council provided the maximum rates listed above are not exceeded. Measure MA would require annual expenditure reports by the City Manager and is estimated to raise approximately $13 million annually in general fund revenue. To be adopted, Measure MA must be approved by a majority of eligible Long Beach voters, and must also receive a higher number of affirmative votes than Long Beach Measure MM. This Measure MA conflicts and competes with the taxes set forth in Section 2 of Measure MM. It does not conflict with any of the other medical marijuana regulations of Measure MM. A “yes” vote on this proposition is a vote to approve the updated medical and non-medical (i.e., recreational) marijuana business license tax rates if such businesses are legalized. A “no” vote is a vote to reject these tax rates.[2] |
” |
| —Long Beach 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]
- ROBERT GARCIA, Mayor
- MICHAEL DUREE, Fire Chief
- ROBERT LUNA, Police Chief
Arguments in favor
Official argument
The following official argument was submitted in favor of the measure:[5]
| “ |
Long Beach Marijuana Taxation Measure -Vote Yes on Measure MA This November, Long Beach voters will consider measures to allow medical and recreational marijuana sales in our city. Should voters approve either measure, Long Beach will desperately need additional public safety and public health resources to continue to keep our community safe. As public safety leaders in Long Beach, we work hard to make sure Long Beach stays safe. Public safety is the most important servi ce our City provides, and we must have the resources to do the job our community has come to expect. Measure MA provides a sensible solution, generating up to $13 million for our City to fund critically needed services if voters allow marijuana sales. Measure MA taxes the sale, distribution and cultivation of marijuana. Only those purchasing marijuana will pay the tax, and if legalized in the city, this industry should pay their fair share. A vote on Measure MA is not a vote for marijuana use, but rather a vote to fund public safety. Measure MA will tax marijuana sales in our city if approved by voters. After years of the lowest crime rates on record, crime has increased in Long Beach and throughout the State, requiring new approaches to public safety. Homelessness is a national problem, and we feel its effects in Long Beach. Every year the number of calls to our 911 dispatch center increases, as we ask our police officers and firefighters to do more and more. Measure MA will invest in police officers, fire resources, public health, solutions to homelessness, and the necessary enforcement and regulation of the marijuana industry, with annual expenditure reports on how the funds are used. Please join us in voting yes on Measure MA to keep Long Beach safe.[2] |
” |
Opposition
Opponents
The following individuals signed the official argument against the measure:[6]
- LARRY KING, L.B. Cannabis Task Force, and Business Consultant
- NICK J. MORROW, L.B. Cannabis Task Force/Retired Law Enforcement
- STEPHEN DOWNING, L.A.P.D. Deputy Chief (Retired)
- DIANA LEJINS, Disabilities Rights Advocate
- RAE GABELICH, Long Beach Council Person, Retired
Arguments against
Official argument
The following official argument was submitted in opposition to the measure:[7]
| “ |
Imagine that you are suffering from Alzheimer’s, chronic pain, MS, arthritis, epilepsy, or cancer with its horrific chemotherapy side effects that keep you from being able to eat. Pharmaceuticals are not helping and may cause worse health problems. Your only relief is through MEDICAL marijuana, recommended by your physician. Now consider that collectives could be taxed at exorbitantly high rates as outlined in this meas ure. You will not be reimbursed by your insurance. You might even have to choose between necessities like food or MEDICINE. Both sides agree that MEDICAL and recreational marijuana should be taxed in Long Beach. But Medical taxation needs to be done fairly, as it already is in the REGULATION OF MEDICAL MARIJUANA BUSINESSES INITIATIVE, also on this November ballot. But this competing Long Beach Marijuana Taxation Measure, a long with high state and sales taxes, will make Long Beach taxes among the highest in the US, exacting an enormous immoral burden on patients as well as enabling a competitive black market. Supporters want you to believe that these funds will be used for police and fire, but there are no guarantees as to how it will be used, nor is there any oversight! They admit their projected costs to the city are speculative. They say that the revenue will not cover the costs. Their cost estimates are outrageously over-inflated. Their projected tax revenue is grossly underestimated. They also say that they need increased enforcement which is equally unfounded. Facts support the opposite. It has been proven that legitimate dispensaries lead to less expense on enforcement. There are no illegal shops in Colorado, Washington, or Illinois. Fair taxes will enable the system to bring in revenue for needed programs. Overtaxing will bolster a thriving black market that pays NO tax! VOTE NO![2] |
” |
Path to the ballot
This measure was put on the ballot through a vote of the governing officials of Long Beach, California.
Recent news
The link below is to the most recent stories in a Google news search for the terms Long Beach Local marijuana tax. These results are automatically generated from Google. Ballotpedia does not curate or endorse these articles.
See also
External links
Footnotes
- ↑ Los Angeles County Registrar-Recorder/County Clerk, "Measures Appearing on the Ballot," accessed November 1, 2016
- ↑ 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.
- ↑ Voter's Edge California, "Measure MA," accessed November 2, 2016
- ↑ City of Long Beach, "Argument in Favor of Measure MA," accessed November 2, 2016
- ↑ City of Long Beach, "Argument in Favor of Measure MA," accessed November 2, 2016
- ↑ City of Long Beach, "Argument Against Measure MA," accessed November 2, 2016
- ↑ City of Long Beach, "Argument Against Measure MA," accessed November 2, 2016
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