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Modesto, California, Marijuana Tax, Measure T (November 2017)
| Measure T: Modesto Marijuana Tax |
|---|
|
| The basics |
| Election date: |
| November 7, 2017 |
| Status: |
 Approved
|
| Topic: |
| Local marijuana tax |
| Related articles |
| Local marijuana tax on the ballot November 7, 2017 ballot measures in California Stanislaus County, California ballot measures City tax on the ballot |
| See also |
| Modesto, California |
A marijuana tax measure was on the ballot for Modesto voters in Stanislaus County, California, on November 7, 2017. It was approved.
| A yes vote was a vote in favor of authorizing the city to leve a tax on marijuana businesses at a maximum rate of 10 percent with revenue deposited in the city's general fund. |
| A no vote was a vote against authorizing the city to leve a tax on marijuana businesses at a maximum rate of 10 percent with revenue deposited in the city's general fund. |
Measure T was designed to establish a tax in preparation for potential marijuana businesses moving into the city, which were not authorized in Modesto as of 2017.[1] Officials stated that if marijuana businesses were to be authorized, the tax would bring in approximately $1 million a year.[2]
Election results
| Measure T | ||||
|---|---|---|---|---|
| Result | Votes | Percentage | ||
| Yes | 19,832 | 82.48% | ||
| No | 4,214 | 17.52% | ||
- Election results from Stanislaus County Registrar of Voters
Text of measure
Ballot question
The ballot question was as follows:[3]
| “ |
Shall the City of Modesto adopt an ordinance establishing a cannabis business tax on all cannabis businesses within the City, up to 10% of gross receipts of each business, potentially generating approximately one million dollars or more in revenues annually for general City services, including neighborhood safety, maintaining parks and recreation, and job creation, with all revenues remaining local, and which continues until repealed by the City Council or the voters?[4] |
” |
Impartial analysis
The following impartial analysis of the measure was prepared by the office of the Modesto City Attorney:
| “ |
The City Council of the City of Modesto placed Measure T on the ballot asking voters to consider a Cannabis (marijuana) Business Tax of up to ten percent (10%) on gross receipts of all cannabis businesses. The tax is a gross receipts tax only on cannabis businesses; it is not a sales tax imposed on individuals purchasing cannabis. Currently, cannabis businesses are not permitted in the City of Modesto. The Cannabis Business Tax would not change this. However, cannabis businesses could be allowed in the City if the City Council approves changes to the City’s Municipal Code, if voters pass an initiative to allow cannabis businesses in the City, or if the state Legislature requires the City to permit cannabis businesses. If cannabis businesses are permitted in the City, Measure T allows the City Council to set a maximum tax rate, by resolution, on all cannabis businesses of up to ten percent (10%) on gross receipts. For example, a cannabis business with gross receipts totaling $100,000 would pay up to $10,000 in taxes to the City. The Cannabis Business Tax would apply to any business activity involving the distribution, delivery, dispensing, exchanging, bartering or sale of either medical or non-medical cannabis or cannabis products, including cultivation, planting, harvesting, transporting, manufacturing, compounding, converting, processing, preparing, labeling, storing, packaging, testing and/or retail sales of cannabis, cannabis products, and any ancillary products, whether or not done for profit. The tax would not apply to the legal cultivation of cannabis for personal use allowed under the City’s Municipal Code and state law. Because Measure T does not limit the City’s use of Cannabis Business Tax revenues to specific purposes, it is a “general tax” rather than a “special tax.” Revenues from the tax would be placed in the City’s general fund. The City could use the tax revenues for any legitimate governmental purpose. All of the revenues from the Cannabis Business Tax would go to the City of Modesto; none would go to the state. The tax would continue until repealed by the voters or the City Council. A “yes” vote on Measure T would approve the Cannabis Business Tax and authorize the City Council to establish a tax rate of up to ten percent (10%) on gross receipts on cannabis businesses if they are allowed to operate in the City in the future. A “no” vote would reject the Cannabis Business Tax. Measure T would be approved if it received a simple majority of “Yes” votes. The entire text of Measure T will be printed in the Voter Information Guide for the November 7, 2017, election.[4] |
” |
| —Modesto City Attorney[1] | ||
Full text
The full text of the measure is available here.
Support
Supporters
Modesto City Council member Tony Madrigal, who voted in favor of placing Measure T on the ballot, stated, "We need to find a way to regulate this market. I’m sick and tired of seeing other jurisdictions take our tax dollars because they set up shop right at our city limits.”[2]
An official argument was submitted in favor of the measure by the following proponents:[5]
- J. David Wright Jr., businessman
- Kristi Ah You, Modesto City Council member
- Stanley L. Hodges, retired president, local community college
- Jenny Kenoyer, Modesto City Council member
Arguments in favor
The following official argument was submitted in favor of the measure:[5]
| “ | Since California voters already have legalized marijuana sales, cities like ours must protect the public by properly regulating and taxing marijuana businesses.
Here’s why you should vote YES on Measure T:
We can’t allow these new business to escape paying their fair share. Please join us in voting YES on Measure T.[4] |
” |
| —J. David Wright, Jr., Kristi Ah You, Stanley L. Hodges, Jenny Kenoyer | ||
Opposition
Council member Bill Zoslocki voted against placing Measure T on the ballot. He stated that Modesto should work with Stanislaus County on marijuana tax regulations and cited a lack of addiction treatment and other local resources as reasons to reject Measure T.[2]
Path to the ballot
This measure was put on the ballot through a 5-2 vote of Modesto City Council on June 27, 2017. The two dissenting councilmen said they wanted Modesto to establish uniform regulations with Stanislaus County.[6]
Recent news
The link below is to the most recent stories in a Google news search for the terms Modesto Local marijuana tax Measure T. These results are automatically generated from Google. Ballotpedia does not curate or endorse these articles.
See also
External links
Footnotes
- ↑ 1.0 1.1 Cite error: Invalid
<ref>tag; no text was provided for refs namedText - ↑ 2.0 2.1 2.2 The Modesto Bee, "Modesto moves closer toward taxing marijuana businesses," June 11, 2017
- ↑ Stanislaus County Elections Office, "Local Measures - November 7, 2017," accessed September 22, 2017
- ↑ 4.0 4.1 4.2 Note: This text is quoted verbatim from the original source. Any inconsistencies are attributable to the original source.
- ↑ 5.0 5.1 Stanislaus County Elections Office, "E-Sample Ballot Pamphlet," accessed October 25, 2017
- ↑ The Modesto Bee, "Modesto has not decided on having marijuana businesses, but it could have a tax ready," July 2, 2017
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