Redwood City, California, Measure DD, Marijuana Business Tax (November 2018)
| Measure DD: Redwood City Marijuana Business Tax |
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| The basics |
| Election date: |
| November 6, 2018 |
| Status: |
 Approved
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| Topic: |
| Local marijuana tax |
| Related articles |
| Local marijuana tax on the ballot November 6, 2018 ballot measures in California San Mateo County, California ballot measures Local business tax on the ballot |
| See also |
| Redwood City, California |
A marijuana business tax was on the ballot for Redwood City voters in San Mateo 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 initial rates from 1 to 4 percent, with a 10 percent maximum, to fund general city services. |
| A no vote was a vote against authorizing the city to tax marijuana businesses at initial rates from 1 to 4 percent, with a 10 percent maximum, to fund general city services. |
Election results
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Redwood City Measure DD |
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| Result | Votes | Percentage | ||
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22,381 | 78.69% | ||
| No | 6,060 | 21.31% | ||
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- Results are officially certified.
- Source
Text of measure
Ballot question
The ballot question was as follows:[1]
| “ |
Shall the measure funding police patrols, after-school recreation programs and other general city services by imposing a cannabis business tax on all cannabis (marijuana) businesses at an annual rate which shall not exceed 10% of gross receipts of each business, which is expected to generate an estimated $210,000 annually and will be levied until repealed by the voters, requiring annual audits and with all funds staying in Redwood City, be adopted?[2] |
” |
Impartial analysis
The following impartial analysis of the measure was prepared by the office of the Redwood City City Attorney:
| “ | The City Council of Redwood City voted 7-0 to place Measure DD on the ballot. The Measure would establish a business tax on cannabis businesses for general city purposes.
Medical cannabis use has been legal in California since 1996 and adult recreational use by persons 21 or older became legal in California in November 2016. In 2017, the State of California enacted a comprehensive state law and emergency regulations covering cannabis cultivation, sale, and use. These state rules include a variety of licensing, operation, and business location requirements for commercial cannabis businesses. On January 1, 2018, the state began issuing licenses for businesses from which adults 21 or older could purchase cannabis. Based on actions taken by the City Council in 2017 and 2018, City law now allows the following business activities in Redwood City:
City code currently imposes a variety of business license taxes that vary depending on the types of businesses operating in Redwood City. This measure would impose a business tax specifically on cannabis businesses, based on gross receipts. The proposed tax is not a sales tax on cannabis consumers. The proposed tax is seperate from the permit fees imposed on cannabis businesses in the City which do not require voter approval. The initial rates would be:
In addition, the measure specifies tax rates for cannabis businesses that are not currently allowed in Redwood City, if the activities are authorized at a later date. The rates would be:
The measure allows the City Council by resolution or ordinance to adjust these tax rates up or down to a maximum rate of 10% of gross receipts. This allows the City to tailor the rates to different businesses within the supply chain that have different profit margins and levels of competition, while ensuring the tax rate does not make the City noncompetitive. All funds generated by the measure would be placed in the City's General Fund to be used for any valid governmental purpose. The measure is estimated to generate $210,000 annually. A simple majority is needed for adoption (50% plus 1). The measure if enacted stays in effect unless and until changed by the voters. [2] |
” |
| —Redwood City City Attorney[1] | ||
Full text
The full text of the measure is available here.
Path to the ballot
This measure was put on the ballot through a vote of the governing officials of Redwood City, California.
See also
External links
Footnotes
- ↑ 1.0 1.1 San Mateo County Assessor-Clerk-Recorder and Elections, "November 6, 2018 Election Information," accessed October 8, 2018
- ↑ 2.0 2.1 Note: This text is quoted verbatim from the original source. Any inconsistencies are attributable to the original source.
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