Simi Valley, California, Measure Q, Marijuana Business Tax (November 2018)

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Local ballot measure elections in 2018
Measure Q: Simi Valley 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
Ventura County, California ballot measures
City tax on the ballot
See also
Simi Valley, California

A marijuana business tax was on the ballot for Simi Valley voters in Ventura 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:
  • Up to $10 per square foot for cultivation;
  • Up to 6 percent of gross receipts for retail; and
  • Up to 4 percent of gross receipts for other businesses.
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

Simi Valley, California, Measure Q, Marijuana Business Tax (November 2018)

Result Votes Percentage

Approved Yes

31,171 66.48%
No 15,718 33.52%
Results are officially certified.
Source

Text of measure

Ballot question

The ballot question was as follows:[1]

Shall the measure to fund, for unrestricted general revenue purposes such as public safety, infrastructure, and streets, which taxes cannabis (marijuana) businesses at annual rates not to exceed $10.00 per canopy square foot for cultivation (adjustable for inflation), 6% of gross receipts for retail cannabis businesses, and 4% or less for all other cannabis businesses, generating an unknown amount of revenue and levied until repealed by the voters or the City Council be adopted?[2]

Impartial analysis

The following impartial analysis of the measure was prepared by the office of the Simi Valley City Attorney:

This measure adds an Ordinance to the Simi Valley Municipal Code ("SVMC") which would tax gross receipts and square footage of plant canopy of businesses involved in cannabis (marijuana). The Ordinance defines cannabis broadly, including all parts of the cannabis plant, the seeds thereof, and every resin, compound, manufacture, salt, derivative, mixture or preparation thereof. "Cannabis," for purposes of the Ordinance, also includes the definition of cannabis set forth in Section 11018 of the California Health and Safety Code and is not limited to medical cannabis.

The Ordinance by itself does not authorize any cannabis business to operate in the City of Simi Valley ("City"). Should any cannabis businesses operate in Simi Valley after January 1, 2019, those businesses would be obligated to pay the tax instituted by the Ordinance.

Pursuant to the Ordinance, every person who engages in cannabis operations, including the cultivating, transporting, distributing, manufacturing, packaging, delivering, testing and all other business activities within the City would pay a maximum tax on the gross receipts of their operation's activities as follows : for testing, 2.5%; for retail sales, retail delivery, or microbusiness retail, 6%; for distribution not to consumers, 3%; for manufacturing, processing or nonretail microbusiness, and any other type of business not otherwise specified, 4%; and for cultivation, a tax per square foot of canopy ranging from $2.00 per square foot of canopy to $10.00 per square foot of canopy, depending on the type of lighting (artificial or natural) used. For purposes of the Ordinance, "canopy" means all areas occupied by any portion of a cannabis plant whether contiguous or non-contiguous on any one site.

The Ordinance sets initial tax rates that are less than the authorized maximums as follows: for testing, 1 %; for retail sales, retail delivery, or microbusiness retail, 4%; for distribution not to consumers, 2%; for manufacturing, processing or non-retail microbusiness, and any other type of business not otherwise specified, 2.5%; and for cultivation, a tax per square foot of canopy ranging from $1.00 per square foot of canopy to $7.00 per square foot of canopy, depending on the type of lighting (artificial or natural) used.

The City Council may, by resolution or ordinance, adjust the rate of the cannabis tax established by the Ordinance. However, in no event may the tax be adjusted to exceed the maximum rate established by the Ordinance.

The tax would be a general tax as authorized by the California Constitution Article XIII C, Section 2. As a general tax, the revenue generated may be used for any general governmental purpose. [2]

—Simi Valley 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 Simi Valley, California.

See also

External links

Footnotes

  1. Ventura County Recorder, "Local Ballot Measures," accessed October 18, 2018
  2. 2.0 2.1 Note: This text is quoted verbatim from the original source. Any inconsistencies are attributable to the original source.
  3. City of Simi Valley, "Impartial Analysis," accessed October 18, 2018