Shasta Lake, California, Marijuana Tax, Measure A (August 2017)

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Local ballot measure elections in 2017
Measure A: Shasta Lake Marijuana Tax
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The basics
Election date:
August 29, 2017
Status:
Approveda Approved
Majority required:
66.67%
Topic:
Local marijuana tax
Related articles
Local marijuana tax on the ballot
August 29, 2017 ballot measures in California
Shasta County, California ballot measures
City tax on the ballot
See also
Shasta Lake, California

A marijuana tax measure was on the ballot for Shasta Lake voters in Shasta County, California, on August 29, 2017. It was approved.

A yes vote was a vote in favor of imposing a marijuana business tax on cultivation, manufacturing, and other marijuana businesses.
A no vote was a vote against imposing a marijuana business tax on cultivation, manufacturing, and other marijuana businesses.

A two-thirds (66.67%) vote was required for the approval of Measure A.

Overview

Measure A was designed to replace the existing 6 percent tax on gross receipts that applied to dispensaries prior to the election. Proceeds from the cannabis business tax were designed to be used exclusively to fund law enforcement and code enforcement. The Shasta Lake City Manager estimated that the new tax could bring in up to $750,000 a year.[1]

Election results

Measure A
ResultVotesPercentage
Approveda Yes 1,240 79.23%
No32520.77%
Election results from Shast County Elections

Text of measure

Ballot question

The ballot question was as follows:[2]

Shall an ordinance be adopted imposing a cannabis business tax on cultivation up to $26 per square foot, on manufacturing up to $25 per square foot, and on other cannabis businesses up to 12% gross receipts to provide funding for local law enforcement/code enforcement within the City of Shasta Lake?[3]

Impartial analysis

The following impartial analysis of the measure was prepared by the office of the Shasta Lake City Attorney:

If this Measure is adopted by at least a 2/3 majority of the voters, then a cannabis business tax will take effect in the City of Shasta Lake. This cannabis business tax would repeal and replace the general tax that is presently collected from medical marijuana dispensaries operating in the City.

The cannabis business tax would impose up to a $26 per square foot tax on marijuana cultivation, up to a $25 per square foot tax on marijuana manufacturing, an up to a 12% gross receipt tax on other cannabis businesses located in the City of Shasta Lake. Proceeds raised by the tax maesure would go to fund local law enforcement and code enforcement within the City of Shasta lake, and would be used for no other purpose.

The tax would be impoesd on all commercial cannabis business, commercial cannabis manufacturing, and commercial cannabis cultivation within the City, whether related to cannabis or medical cannabis. Payment of the tax would not be construed by the City as authorizing the conduct or permitting the continuance of any illegal business within the City, nor will this measure in itself permit any commercial cannabis activity. Nothing in the measure would imply or authorize any activities connected with the distribution, possession, or sale of cannabis unless authorized by California law and as may be permiited by the City of Shasta Lake.

Passage of the measure would authorize City management and staff to promulgate rules, regulations, and procedures to implement and administer the tax, and would authorize the City Council to amend, modify, change, revise, or appeal any provision of the measure without a vote of the people to the extent allowed by law. However, voter approval would still be required for any amendment that would increase the rate of any tax levied pursuant to this measure above the maximum rates established by the measure. The City Council would be permitted to impose any tax authorized by the measure at a lower rate and may establish exemptions, incentives, reductions, and interest charges for failure to pay the tax in a timely manner, as otherwise allowed by California law.[3]

—Shasta Lake City Attorney[4]

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]

  • Rick Kern, mayor
  • Larry Farr, vice mayor
  • John Duckett, city manager

Individuals

  • Stacy Lidie, marijuana dispensary owner[6]

Arguments in favor

Official argument

The following official argument was submitted in favor of the measure:[5]

Vote YES on Measure A to continue reasonable and fair taxation of commercial cannabis businesses within Shasta Lake. Measure A places a tax on commercial cannabis businesses to provide funding to support law enforcement and code enforcement activities.

Measure A is designed to protect local control. The City’s goals in regulating commercial cannabis businesses are: Reduce and eliminate the black market for cannabis; Establish reasonable and comprehensive regulations that preserve the health and safety of our community; Provide access to medical cannabis for those who benefit from its use; Establish a new source of funding that benefits the entire community; and Create a fair and reasonable tax structure that supports financially stable cannabis businesses. Measure A will help the City achieve all five goals.

Measure A will be implemented through a tightly regulated Conditional Use Permit process and regulatory ordinance. It is the City’s intent to allow only highly qualified operators that meet the standards of the City’s zoning and regulatory ordinances. All programs funded by Measure A will be subject to oversight and review. All the funds will be fully audited each year. Measure A is fiscally responsible, timely and prudent.

This is not a new tax, but an important update to an existing cannabis tax imposed by Measure C as passed by the City of Shasta Lake voters in 2014 with 73.18% support. Measure A will extend the cannabis taxation to include all types of business operations such as cultivation and manufacturing. Passage of this improved tax measure will ensure that the City receives its fair share of cannabis taxation revenue.

Your YES vote will show your continued support for protecting the interests, values, quality of life, and health and wellness of the residents of the City of Shasta Lake. [3]

Opposition

Arguments against

Betty Cunningham of Shasta County Chemical People expressed concern over the possibility that an increase in taxes could prompt recreational users to buy the drug on the black market, leading to more accidental poisonings, impaired drivers, and an increase in use by youth.[7]

Official arguments

No official arguments were submitted for inclusion in the voter guide in opposition to Measure A. Please send any information about opposition to Measure A to editor@ballotpedia.org.

Path to the ballot

See also: Laws governing local ballot measures in California

This measure was put on the ballot through a unanimous vote of the Shasta Lake City Council on March 21, 2017.[2]

Recent news

The link below is to the most recent stories in a Google news search for the terms Shasta Lake Local marijuana tax Measure A. These results are automatically generated from Google. Ballotpedia does not curate or endorse these articles.

See also

External links

Footnotes