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Palm Springs, California, Marijuana Tax, Measure E (November 2017)

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Local ballot measure elections in 2017
Measure E: Palm Springs Marijuana Tax
LocalBallotMeasures Final.png
The basics
Election date:
November 7, 2017
Status:
Approveda Approved
Topic:
Local marijuana tax
Related articles
Local marijuana tax on the ballot
November 7, 2017 ballot measures in California
Riverside County, California ballot measures
City tax on the ballot
See also
Palm Springs, California

A marijuana tax measure was on the ballot for Palm Springs voters in Riverside County, California, on November 7, 2017. It was approved.

A yes vote was a vote in favor of authorizing the city to apply the then-existing tax on medical marijuana collectives to all marijuana businesses to adjust for statewide legalization via 2016 Proposition 64.
  • The maximum tax rate under Measure E: 15 percent of gross receipts; $10 per square foot for cultivation sites.
  • The rate going into the election: 10 percent of gross receipts
A no vote was a vote against authorizing the city to apply the then-existing tax on medical marijuana collectives to all marijuana businesses to adjust for statewide legalization via 2016 Proposition 64.
  • The maximum tax rate under Measure E: 15 percent of gross receipts; $10 per square foot for cultivation sites.
  • The rate going into the election: 10 percent of gross receipts

Election results

Measure E
ResultVotesPercentage
Approveda Yes 9,357 78.38%
No2,58121.62%
Election results from Riverside County

Text of measure

Ballot question

The ballot question was as follows:[1]

Shall Palm Springs update the existing gross receipts tax on medical cannabis collectives and cooperatives to apply to all medical and adult-use cannabis businesses, apart from cultivation businesses, which will be taxed at a rate up to 10 dollars per square foot, with all revenue used in Palm Springs to maintain and improve essential city services, including public safety and youth drug prevention education; requiring annual independent audits and public oversight?[2]

Impartial analysis

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

This measure would update and replace the existing tax on cannabis in the City of Palm Springs in connection with a new City ordinance regulating cannabis businesses. Now, the only cannabis tax paid in the City comes from "collectives." On July 26, 2017, the City Council unanimously adopted a new cannabis ordinance reflecting changes in state law. The new ordinance updates the municipal code sections that cover medical cannabis businesses in the City beyond these collectives. The ordinance also applies to new adult-use cannabis businesses that open. This measure's updated tax is linked to this new ordinance; the City will issue permits under this new ordinance if this tax measure is approved by the voters. A simple majority of voters, i.e., more than 50%, must approve this tax before it can take effect.

All cannabis taxes under this measure would be paid monthly. This measure would extend the maximum 15% tax rate on collectives' gross receipts to all cannabis businesses, with the exception of cultivation (grows), taxed separately. This is not a sales tax. Consumers will not pay this tax, cannabis businesses will. Its rate may vary depending upon the kind of cannabis business taxed. Even though the maximum rate on collectives is 15%, the current rate paid is 10%. Like the tax on collectives, under this measure the Council would set and adjust the gross receipts tax rate by resolution. This measure would tax cultivation at a rate up to $10.00 per square foot of grow area, adjustable yearly.

Under this measure, cannabis businesses would annually register, and pay a registration fee. Payment of tax and registration alone would not allow a cannabis business to operate; a business must have a permit issued under the July 26, 2017 ordinance. The money from this tax would go in the City's general fund, and could be used for any City purpose, including: fire and police protection, paramedic service, street, park and public facility cleaning, repair and maintenance, police and fire equipment, and other public needs identified by the Council. Public needs would include coverage of City costs that relate to cannabis business, but can't be recovered through permit or registration fees (such as community programs, like drug education or prevention).

The tax will be subject to an annual review through a public and independent audit. A certified public accounting finn with expertise in California municipal finance will perform the audit, including an analysis of the City's cannabis tax receipts, and how they are spent. The Council must post the audit report on the City's website, and discuss its results at a public meeting[2]

—Palm Springs City Attorney[3]

Full text

The full text of the measure is available here.

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 Palm Springs, California.

Recent news

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See also

External links

Footnotes