Paso Robles, California, Measure I-18, Marijuana Business Tax (November 2018)

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Local ballot measure elections in 2018
Measure I-18: Paso Robles 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 Luis Obispo County, California ballot measures
City tax on the ballot
See also
Paso Robles, California

A marijuana business tax was on the ballot for Paso Robles voters in San Luis Obispo 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 the following rates:
  • $20 per square foot for cultivation/processing;
  • up to 10 percent of gross receipts for transportation;
  • up to 15 percent of gross receipts for manufacturing, testing, and distribution; and
  • up to 10 percent of gross receipts for dispensaries.
A no vote was a vote against authorizing the city to tax marijuana businesses at the above rates to fund general city purposes.

Election results

Paso Robles, California, Measure I-18, Marijuana Business Tax (November 2018)

Result Votes Percentage

Approved Yes

7,429 67.22%
No 3,622 32.78%
Results are officially certified.

Text of measure

Ballot question

The ballot question was as follows:[1]

To improve basic city services, such as police and emergency response, parks and youth/senior services, and street repair, shall the City of Paso Robles adopt an ordinance enacting a tax on cannabis-related activities in the amount of up to $20 per square foot for cultivation/processing; up to 10% of gross receipts for transportation; up to 15% of gross receipts for manufacturing, testing, and distribution; and up to 10% of gross receipts for dispensaries, generating approximately $15,000 annually initially for unrestricted general purposes, until ended by voters?[2]

Impartial analysis

The following impartial analysis of the measure was prepared by the office of the Paso Robles City Attorney:

Measure I-18, if approved by a majority of the voters voting on the measure, will enact an Ordinance adding Chapter 3.22 to the El Paso de Robles Municipal Code. That chapter would impose a tax on cannabis businesses operating within the City. Measure I-18 is a tax measure only. It does not amend the City’s existing cannabis business regulations or authorize new or additional types of cannabis businesses to operate in the City.

If approved, Measure I-18 would impose the following maximum tax rate on every person or entity engaged in operating or conducting a cannabis business within the City: a cultivation tax of up to twenty dollars ($20.00) per square foot of space utilized in connection with the cultivation and processing of cannabis; a gross receipts tax of up to ten percent (10%) for all cannabis transportation; a gross receipts tax of up to fifteen percent (15%) for all cannabis manufacturing, testing, and distribution; and a gross receipts tax of up to ten percent (10%) for dispensaries. The term “cannabis business” means any business, organization or facility, regardless of form, whether operating for profit or not for profit, that cultivates, possesses, manufactures, distributes, processes, stores, laboratory tests, packages, labels, delivers, and/or sells cannabis and/or cannabis products, excluding personal cultivation of medical or adult use cannabis authorized by the Municipal Code and State law. The City Council may increase or decrease the applicable tax rates so long as they do not exceed the maximum rates listed above.

The City currently prohibits all commercial marijuana activity, with the limited exception of certain medical cannabis delivery services. If approved, Measure I-18 would impose a tax on those businesses currently operating in the City, as well as any other cannabis businesses that may be authorized by the City Council in the future, in the event the City Council amends the Municipal Code to permit or authorize new or additional cannabis businesses in the City. As noted above, Measure I-18 would not change or expand the number or types of cannabis businesses currently allowed in the City. If approved, Measure I-18 is anticipated to initially raise approximately $15,000 annually.

The cannabis business tax would be a general tax on legally operating businesses, meaning that the revenue raised from the tax would go into the City’s general fund and could be used for any legal governmental purpose, such as street maintenance, police, fire, emergency response, parks, and recreational programs.

The City Council adopted Resolution No. 18-094 on June 19, 2018 to approve the placement of Measure I-18 on the ballot. If approved, Measure I-18 will continue in effect until repealed by City Council or City voters.

A “yes” vote on Measure I-18 will approve the cannabis business tax identified above.

A “no” vote on Measure I-18 will not approve the cannabis business tax identified above. [2]

—Paso Robles City Attorney[1]

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 Paso Robles, California.

See also

External links

Footnotes

  1. 1.0 1.1 San Luis Obispo County, "Media Guide," accessed October 30, 2018
  2. 2.0 2.1 Note: This text is quoted verbatim from the original source. Any inconsistencies are attributable to the original source.