Monterey County, California, Marijuana Business Tax, Measure Y (November 2016)
| Measure Y: Monterey County Marijuana Business Tax |
|---|
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| The basics |
| Election date: |
| November 8, 2016 |
| Status: |
 Approved
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| Topic: |
| Local marijuana tax |
| Related articles |
| Local marijuana tax on the ballot November 8, 2016 ballot measures in California Monterey County, California ballot measures County tax on the ballot |
| See also |
| Monterey County, California |
A marijuana tax was on the ballot for Monterey County voters in Monterey County, California, on November 8, 2016. It was approved.
| A yes vote was a vote in favor of imposing a $25 per square foot tax on marijuana cultivators, $5 per square foot tax on marijuana nurseries, and a 10 percent tax on gross receipts of marijuana businesses in unincorporated areas of the county. |
| A no vote was a vote against this proposal to impose a $25 per square foot tax on marijuana cultivators, $5 per square foot tax on marijuana nurseries, and a 10 percent tax on gross receipts of marijuana businesses in unincorporated areas of the county. |
Election results
| Measure Y | ||||
|---|---|---|---|---|
| Result | Votes | Percentage | ||
| Yes | 95,978 | 73.68% | ||
| No | 34,288 | 26.32% | ||
- Election results from Monterey County Elections Office
Text of measure
Ballot question
The following question appeared on the ballot:[1]
| “ |
Shall the ordinance imposing a tax on commercial marijuana businesses in the unincorporated area of Monterey County only (not cities) up to a maximum of: $25 per square foot on cultivation with an annual adjustment by Consumer Price Index (CPI) thereafter; $5 per square foot on nurseries with annual CPI adjustment thereafter; and 10% of gross receipts on other marijuana business activities with no CPI, potentially generating millions of dollars annually to help fund County services, be adopted?[2] |
” |
Impartial analysis
The following impartial analysis of the measure was prepared by the office of the Monterey County Counsel:
| “ |
Approval of this measure would impose a permanent tax on all commercial marijuana (also known as “cannabis”) business activity, such as cultivation, processing, manufacturing, distribution and selling, only in the unincorporated area of Monterey County (not in cities). County regulations regarding medical marijuana use and cultivation would only become operative if this tax is approved. The tax would not apply to personal medical marijuana cultivation, but would apply to commercial recreational marijuana business activity if legalized at the state level. The tax distinguishes between cultivation, basically growing marijuana, and all other commercial marijuana business activity. Commercial marijuana cultivation, currently restricted to indoor areas such as greenhouses or buildings, would be taxed based on the square footage of the “canopy” as specified in a permit. The “canopy” is all areas that could be occupied by any portion of a marijuana plant; it would not be determined by the square footage of the building in which the cultivation occurs. For example, if a greenhouse has several shelves stacked vertically, each within the permit to hold marijuana plants for cultivation, the square footage of each shelf would be taxed as part of the canopy. The cultivation tax distinguishes between cultivation as a nursery, which is cultivation of certain products such as seeds, clones and immature plants to be sold for growing mature plants, and all other cultivation. The nursery cultivation tax would start at $2.00 per square foot of canopy until June 30, 2020 and then increase by $1.50 on each succeeding July 1 until a maximum rate of $5.00 per square foot is reached. Thereafter, on each succeeding July 1 the tax would increase by the Consumer Price Index (“CPI”) but there would be no decrease in the tax if the CPI fell in any given year. The non-nursery cultivation tax would start at $15.00 per square foot of canopy until June 30, 2020, and then increase each succeeding July 1 by $5.00 until a maximum rate of $25.00 per square foot is reached. Thereafter, on each succeeding July 1, the tax would increase by the CPI but there would be no decrease in the tax if the CPI fell in any given year. The tax on all other (non-cultivation) commercial marijuana business activity would be based on annual gross receipts starting at 5% until June 30, 2020, and then increasing each succeeding July 1 by 2.5% until a maximum rate of 10% is reached. There would be no annual CPI adjustment on the gross receipts tax. The tax would be a general tax as defined in the California Constitution, and tax revenues would be placed in the County’s General Fund and used for general County purposes at the discretion of the Monterey County Board of Supervisors. The measure was placed on the ballot by the Board of Supervisors. A “Yes” vote is a vote to approve the imposition of the tax; a “No” vote is a vote against imposition of the tax. The measure requires a simple majority vote for approval.[2] |
” |
| —Monterey County Counsel[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:[3]
- John M. Phillips, Supervisor, District 2
- Jane Parker, Supervisor, District 4
Arguments in favor
Official argument
The following official argument was submitted in favor of the measure:[3]
| “ |
This is a common sense regulation, requiring marijuana operations to provide funds to ensure County resources are not strained by marijuana business activities while benefitting all Monterey County residents through proper taxation. This is not a sales tax or income tax! This is a tax that marijuana businesses would pay for permission to operate in the unincorporated areas of Monterey County (outside the cities). Without this tax, marijuana operations put a burden on funding for public services, primarily public safety and environmental programs. This measure provides a fiscally and socially responsible approach that allows limited cultivation of marijuana, which has become an important option to those living with cancer, chronic pain and other debilitating conditions. This tax would provide funding for County services addressing the strain on funding for public services created by this industry. Voting yes on this measure will support a local, regulated, marijuana market that will not exist without this tax. This tax is tied to a rigorous regulatory framework designed to ensure proper siting and policing of marijuana cultivation, processing, and dispensing in Monterey County. Regulations ensure protection of our neighborhoods, natural environment, and quality of life. Marijuana businesses will need to obtain annual operating permits that evaluate locations, criminal backgrounds, security protocols, and comprehensive operational plans. Regular health, safety, and compliance inspections are required for commercial marijuana businesses. The tax is critical to fund projected costs and demands on County services resulting from marijuana businesses. Current lack of resources and regulations create environmental and social impacts to our County and reward criminal activity. The tax revenues will help support general County services including law enforcement, hospitals, libraries, parks, homeless services programs and more. Approve this measure, help put a stop to criminal activities, and preserve our cherished environment and quality of life.[2] |
” |
Opposition
Opponents
The following individuals signed the official argument against the measure:[3]
- James King, Chair, Libertarian Party of Monterey County
- Lawrence Samuels, Vice-Chair, Libertarian Party of Monterey County
- Jane Heider, Secretary, Libertarian Party of Monterey County
- Brandon Kelsey
Arguments against
Official argument
The following official argument was submitted in opposition to the measure:[3]
| “ |
Government greed knows no bounds. Taxes are simply too high. Medical marijuana is already taxed at the local and state levels. Why levy a special tax? High taxation of marijuana will only continue the problem of illegal pot farming—where growers use parklands for their operations, which can damage the wilderness, cause wildfires and result in physical harm to innocent hikers. Plus, what do we get with higher and higher taxation. As taxes go up government service and quality seem to go down. Why pay more to get less? Why make ourselves poor when government officials receive $100,000 salaries with generous retirement pension and healthcare benefits paid by you and me? Many of us already can barely afford food and housing. This is exactly what is happening to many taxpayers. We need to stop making the people poorer and making the already wealthy bureaucratic elite richer. Vote NO on Measure Y. |
” |
Path to the ballot
This measure was put on the ballot through a vote of the governing officials of Monterey County, California.
Recent news
The link below is to the most recent stories in a Google news search for the terms Monterey County Local marijuana tax. These results are automatically generated from Google. Ballotpedia does not curate or endorse these articles.
See also
External links
Footnotes
- ↑ Monterey County Elections, "Notice of Local Measures," accessed October 24, 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.
- ↑ 3.0 3.1 3.2 3.3 3.4 Monterey County Elections, "Voter Guide," accessed October 24, 2016
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