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Stanton, California, Measure A, Future Cannabis Business Tax (November 2019)

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Local ballot measure elections in 2019
Measure A: Stanton Future Cannabis Business Tax
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The basics
Election date:
November 5, 2019
Status:
Approveda Approved
Topic:
Local marijuana tax
Related articles
Local marijuana tax on the ballot
November 5, 2019 ballot measures in California
Orange County, California ballot measures
Local business tax on the ballot
See also
Stanton, California

A measure proposing to tax future cannabis businesses was on the ballot for Stanton voters in Orange County, California, on November 5, 2019. It was approved.

A yes vote was a vote in favor of authorizing a tax on future cannabis or hemp businesses to raise revenue for municipal services according to the following rates:
  • $12 per square foot used for cultivation,
  • 6 percent of all retail sales, and
  • 4 percent on all other cannabis or hemp businesses.
A no vote was a vote against authorizing a tax on future cannabis or hemp businesses at the following rates:
  • $12 per square foot used for cultivation,
  • 6 percent of all retail sales, and
  • 4 percent on all other cannabis or hemp businesses.

Election results

Stanton Measure A

Result Votes Percentage

Approved Yes

2,003 66.70%
No 1,000 33.30%
Results are officially certified.


Text of measure

Ballot question

The ballot question was as follows:[1]

To improve general City services, such as police, fire and emergency response, parks and youth/senior services, and street repair, shall a measure enacting a tax on cannabis or hemp businesses up to $ 12.00 per square foot for cultivation, 6% of gross receipts for retail businesses, and 4% for all other cannabis or hemp businesses, generating approximately $1,000,000 - $1,400, 000 annually, until ended by voters, be adopted?[2]

Impartial analysis

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

Measure A was placed on the ballot by a unanimous vote of the Stanton City Council and, if approved by a majority of Stanton voters, will amend the Municipal Code to impose a tax on cannabis/marijuana businesses operating within the City. Measure A is a tax measure only. It does not amend the City’s existing cannabis regulations or authorize cannabis businesses to operate in the City.

If approved, Measure A would impose a maximum tax rate on cannabis businesses up to the following:

  • Cultivation/Nursery – $12 per square foot of canopy space, whether using artificial or natural light, or a combination thereof, subject to annual increase in 2023 by the Consumer Price Index (CPI);
  • Testing – 2.5% of gross receipts from such activity;
  • Retail Sales/Delivery – 6% of gross receipts from such activity;
  • Distribution – 3% of gross receipts from such activity;
  • Manufacturing/Processing – 4% of gross receipts from such activity;

Measure A authorizes the City Council to set the actual tax rates, provided that the rates do not exceed the voter-approved maximum rates set by Measure A.

Measure A would be a “general tax”. All revenue from this tax would be deposited into the City’s General Fund and could be used for general City operations and services, including police enforcement, emergency response, parks, youth and senior services, and street repair. Pursuant to State Law, a “general tax” requires approval by a majority of the City’s voters voting at an election.

The City currently does not permit cannabis businesses to operate in the City. However, the City has placed this measure on the ballot to seek voter approval of a cannabis tax should the law change in the future to permit these businesses in Stanton. As noted above, Measure A would not change the City’s current ban on cannabis businesses. If approved, and if cannabis businesses are permitted in the City, Measure A is anticipated to raise approximately $1,000,000 – 1,400,000 annually.

A “yes” vote on Measure A will approve the cannabis business tax. A “no” vote on Measure A will not approve the cannabis business tax.[2]

—Stanton City Attorney[3]

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:[4]

  • Tom Dominguez
  • Kantibhai Patel
  • Andrew Marques
  • Jimmy Ta

Arguments in favor

Official argument

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

YES, on Measure A establishes local control and creates funding to regulate cultivating, manufacturing, distributing, selling and testing cannabis and other related products if legalized in the future by Stanton voters.

YES, on Measure A will provide funding to recover the city's cost related to all Cannabis businesses in Stanton. This tax will be paid by the cannabis business owners and not local taxpayers.

YES, on Measure A does not change our current Stanton cannabis laws which do not allow any type of cannabis activity other than what is permitted by State mandated law. Cannabis can only be legalized by a vote of the residents or City Council.

YES, on Measure A will provide additional funding for public safety, parks, youth and senior programs, and essential city services. The proposed tax rates are: indoor cultivation $12. 00 sq. ft.; testing labs 2. 5% gross; retail sales and delivery of cannabis, cannabis products, industrial hemp, and/ or industrial hemp products at 6% of gross; distribution of cannabis, cannabis products, industrial hemp, industrial hemp products at 3% of gross. All other varieties of cannabis or hemp businesses would be taxed at 4% of gross receipts. The proposed Cannabis Sales Tax is estimated to generate between $1, 000,000 - $1,400,000 annually for local city services.

YES, on Measure A will provide resources to remove illegal cannabis dispensaries and related businesses that impact the cost of public safety to Stanton taxpayers.

Please Vote Yes on Measure A. Keep Stanton Safe! [2]

Opposition

Opponents

The following individuals signed the official argument against the measure:[6]

  • Kevin Carr

Arguments against

Official argument

The following official argument was submitted in opposition to the measure:[7]

This huge tax on pot will promote illegal sales and illegal activity in our residential neighborhoods, apartment complexes, condo associations, mobile home parks, etc. Do you want this type of activity moving in next door to you and your family?

Supporters of Measure A want you to believe that their pot tax will be used for police and fire; however, there are no guarantees on how money will be used!

Don't you feel like our city council is constantly holding us hostage? Seems like they are always threatening to cut our safety services if we don' t give in to their demands. Is this how you want to live your life with constant fear and threats from City Hall!

Look, the city' s finances are not your problem. Bottom line is that our city council spent beyond their means again. Giving them more of your money is not going to solve their problem.

And this tax has nothing to do with the city allowing pot shops to open in the city. It is a way to collect a tax if pot shops do open up. And if none open up then where will the city get the tax money they claim to need so badly? Maybe increase other fees?

Besides, just 10 months ago while our mayor ran for office he said our crime rate is among the lowest in Orange County but now he is saying we need more taxes for police?

Overtaxing pot will only promote a thriving illicit market that pays no tax! You don' t want this moving in next door to you, do you?[2]

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 Stanton City Council.

See also

External links

Footnotes