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Santa Rosa, California, Marijuana Business Tax, Measure D (June 2017)
| Measure D: Santa Rosa Marijuana Business Tax |
|---|
|
| The basics |
| Election date: |
| June 6, 2017 |
| Status: |
 Approved
|
| Topic: |
| Local marijuana tax |
| Related articles |
| Local marijuana tax on the ballot June 6, 2017 ballot measures in California Sonoma County, California ballot measures City tax on the ballot |
| See also |
| Santa Rosa, California |
A marijuana business tax measure was on the ballot for Santa Rosa voters in Sonoma County, California, on June 6, 2017. It was approved.
| A yes vote was a vote in favor of adopting an ordinance to tax marijuana cultivation businesses up to $25 per square foot and marijuana manufacturing, distribution, and dispensary businesses up to eight percent of gross receipts. |
| A no vote was a vote against adopting an ordinance to tax marijuana cultivation businesses up to $25 per square foot and marijuana manufacturing, distribution, and dispensary businesses up to eight percent of gross receipts, thus keeping the current general business tax of up to $3,000 per year in place. |
Overview
Businesses in Santa Rosa are subject to a general business tax of up to $3,000 per year, which included marijuana businesses prior to the election. Measure D was designed to impose a cannabis-specific business tax on cannabis-related businesses. Commercial cultivation businesses became subject to an annual tax of up to either $25 per square foot of cultivation area or eight percent of gross receipts. Manufacturing, distribution, and dispensary businesses became subject to an annual tax of up to eight percent of gross receipts. Tax rates were designed to be set for a minimum term of two years.[1]
Cannabis businesses in unincorporated Sonoma County are subject to a tax of up to 10 percent, with no lock in rate increments. This rate was approved by voters in March 2017 through a ballot measure.[2]
Measure D was designed as an excise tax to be paid by businesses. It does not impose a sales tax directly on consumers.[1]
Election results
| Measure D | ||||
|---|---|---|---|---|
| Result | Votes | Percentage | ||
| Yes | 25,632 | 77.28% | ||
| No | 7,535 | 22.72% | ||
- Election results from Sonoma County Elections
Text of measure
Ballot question
The following question appeared on the ballot:[3]
| “ |
Shall an ordinance be adopted authorizing a cannabis business tax in the City of Santa Rosa on cultivation businesses up to $25 per square foot of cultivation area (annually adjusted by CPI) or 8% of gross receipts, and on cannabis manufacturing, distribution and dispensary businesses up to 8% of gross receipts, to maintain general funds for City services and to address cannabis industry impacts, with all funds subject to audits and staying local, generating undetermined revenue until repealed?[4] |
” |
Impartial analysis
The following impartial analysis of the measure was prepared by the office of the Santa Rosa City Attorney:
| “ |
The City of Santa Rosa is in the process of expanding its regulation of cannabis businesses operating within the City limits. Currently, all businesses operating in Santa Rosa – including cannabis businesses – must pay a general business tax, capped at $3,000 per year. The Santa Rosa City Council has placed on the ballot an ordinance (“the Ordinance”) to impose a cannabis-specific business tax, rather than the general business tax, on certain cannabis-related businesses operating within City limits. The Ordinance will not go into effect unless a majority of those voting on the measure vote “yes.” If approved by the voters, the Ordinance will authorize the City Council to establish an excise tax on four types of cannabis-related businesses operating in the City – commercial cannabis cultivation (including nurseries), manufacturing, distribution and dispensaries. As an excise tax, the tax will be paid by cannabis businesses. It is not a sales or use tax imposed directly on cannabis users or consumers. Businesses that pay the excise tax under the Ordinance will be exempt from the City’s general business tax. The tax does not apply to the use of cannabis or the cultivation of cannabis for personal use as authorized under state law. The Ordinance authorizes the City Council to set and adjust the rate of the excise tax up to the maximum tax rates established in the Ordinance. For commercial cultivation, the annual tax rate may not exceed either $25 per square foot of cannabis cultivation area (adjusted annually by CPI) or 8%of annual gross receipts. For cannabis manufacturing, distribution and dispensaries, the annual tax rate may not exceed 8% of annual gross receipts. Subject to those tax rate caps, the City Council may establish differing tax rates for different categories of cannabis businesses (such as different rates for medical or recreational cannabis, or for indoor or outdoor cultivation), and may exempt certain categories of businesses, leaving those businesses subject instead to the City’s general business tax. The City Council may periodically increase or decrease the tax rates applicable to cannabis businesses. An affirmative vote of at least five members of the City Council, however, is required for any proposed tax increase resulting in a tax rate of more than 5% of gross receipts. The tax rates must be set for a minimum term of two years. At its discretion, the City Council may establish longer terms if desired. The Ordinance requires all persons engaging in a cannabis business in the City – whether subject to the cannabis industry tax or the City’s general business tax – to register with the City for purposes of tax collection. The Ordinance includes procedures for tax reporting, remittance and enforcement that mirror procedures for other City taxes. The tax imposed by the Ordinance is a general tax under state law. All taxes collected under the Ordinance will be placed in the City’s general fund, and may be used for any City purpose. The amount of revenue to be generated by the tax is undetermined at this time.[4] |
” |
| —Santa Rosa City Attorney[1] | ||
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:[5]
- Chris Coursey, mayor
Individuals
- Tawnie Logan, executive director, Sonoma County Growers Alliance[2]
Arguments in favor
Official argument
The following official argument was submitted in favor of the measure:[5]
| “ |
Measure D will allow Santa Rosa to impose a tax on medical and recreational cannabis businesses operating within the City now that the State has enacted the Medical Cannabis Regulation and Safety Act, and the voters have approved Proposition 64, the Adult Use of Marijuana Act. Measure D will ensure that the City has the resources to properly support and regulate the cannabis industry without hurting our investment in core city services, such as maintaining neighborhood infrastructure and public safety. Over 40 Cities and Counties in California have enacted similar taxes for cannabis businesses to address the inherent strain on the local agencies’ budgets caused by cannabis legalization. Recently the City of Santa Rosa began issuing permits for medical cannabis businesses, and has identified areas where additional resources are needed to continue the support of this new industry. Measure D is fiscally responsible, timely, and prudent. Over the past year, the City of Santa Rosa has addressed critical issues such as housing, homelessness and our aging road infrastructure, and has made key investments from a limited pool of resources. By proactively establishing a tax on cannabis activity, the City’s budget will be protected from any new or unexpected costs associated with cannabis legalization and permitting, and protect resources for investment in other key priorities. Measure D was carefully crafted with input from the industry in a public forum to find the right balance between generating the revenue needed while addressing certainty for this emerging industry. Adoption of a clear, fair, and easy to follow legal framework will encourage cannabis businesses to join the regulated market, ensuring protection for consumers, the environment, and public health. With unanimous support from the Santa Rosa City Council, we respectfully request a Yes vote on Measure D. [4] |
” |
Opposition
No official arguments were submitted for inclusion in the voter guide in opposition to Measure D. Please send any information about opposition to Measure D to editor@ballotpedia.org.
Media editorials
Support
- The Press Democrat said the following:[6]
| “ | For decades, marijuana advocates have argued for legalization and taxation. California is one of more than a dozen states that have started down that path. As the state moves forward with the licensing process required by Proposition 64, cities such as Santa Rosa are certain to see a growing number of applications for marijuana-related businesses. They need to help offset the regulatory and social costs that will accompany this new industry.
The Press Democrat recommends a yes vote on Measure D.[4] |
” |
Opposition
Ballotpedia has not found any media editorials in opposition to Measure D. Please send any information about media editorials in opposition to Measure D to editor@ballotpedia.org.
Path to the ballot
This measure was put on the ballot through a 6-0 vote of the city council of Santa Rosa, California, on March 7, 2017. One council member was absent from the vote.[3]
Recent news
The link below is to the most recent stories in a Google news search for the terms Santa Rosa Local marijuana tax Measure D. These results are automatically generated from Google. Ballotpedia does not curate or endorse these articles.
See also
External links
Footnotes
- ↑ 1.0 1.1 1.2 Santa Rosa City Clerk, "City Attorney Impartial Analysis," accessed May 18, 2017
- ↑ 2.0 2.1 The Press Democrat, "Cannabis tax goes before voters in Santa Rosa," May 22, 2017
- ↑ 3.0 3.1 Santa Rosa City Clerk, "Resolution No. RES-2017-035," accessed May 18, 2017
- ↑ 4.0 4.1 4.2 4.3 Note: This text is quoted verbatim from the original source. Any inconsistencies are attributable to the original source.
- ↑ 5.0 5.1 Santa Rosa City Clerk, "Argument in Favor of Measure D," accessed May 22, 2017
- ↑ The Press Democrat, "PD Editorial: Yes on Measure D: Cannabis should pay its own way," May 3, 2017
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