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Tracy, California, Measure D, Marijuana Tax (November 2018)

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Local ballot measure elections in 2018
Measure D: Tracy Marijuana Tax
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The basics
Election date:
November 6, 2018
Status:
Defeatedd Defeated
Majority required:
66.67%%
Topic:
Local marijuana tax
Related articles
Local marijuana tax on the ballot
November 6, 2018 ballot measures in California
San Joaquin County, California ballot measures
City tax on the ballot
See also
Tracy, California

A marijuana tax was on the ballot for Tracy voters in San Joaquin County, California, on November 6, 2018. It was defeated.

A yes vote was a vote in favor of allowing the city to impose a tax on marijuana businesses of $12 per square foot for nurseries and no more than 6 percent for other businesses.
A no vote was a vote against allowing the city to impose a tax on marijuana businesses of $12 per square foot for nurseries and no more than 6 percent for other businesses.

Election results

Tracy, California, Measure D, Marijuana Tax (November 2018)

Result Votes Percentage
Yes 16,187 62.24%

Defeated No

9,819 37.76%
Results are officially certified.
Source

Text of measure

Ballot question

The ballot question was as follows:[1]

Shall the City of Tracy adopt an ordinance establishing a special tax on cannabis businesses at annual rates, not to exceed $12.00 per canopy square foot for cultivation (adjusted for inflation), 6% of gross receipts for retail cannabis businesses, and 4% for all other businesses; which is expected to generate an estimated $35,000 to $100,000 annually to fund police and code enforcement services and that shall be levied until repealed by voters?

[2]

Impartial analysis

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

The Tracy City Attorney has prepared the following impartial analysis pursuant to California Elections Code section 9280:

The Tracy City Council has placed Measure D on the November 6, 2018 ballot to ask voters if the City should adopt a special tax on commercial cannabis (marijuana) activities. The tax, if approved, would levy a maximum tax of $12.00 (adjusted for inflation) per square foot of plant canopy for businesses engaged in the cultivation of cannabis; a maximum tax rate of 6% of gross receipts for businesses engaged in the retail sale of cannabis; and a maximum tax rate of 4% of gross receipts for all other cannabis businesses such as manufacturers, testing laboratories, and distributors of cannabis, cannabis products and any ancillary products. Cannabis businesses are currently prohibited from operating in Tracy. However, the City is drafting ordinances and regulations to allow up to two cannabis non-storefront retailers (delivery only) to operate in the City. This tax would not apply to the cultivation of cannabis for personal use allowed under local and state law.

The City Council may, in its discretion, adjust the cannabis business tax rates, including establishing different tax rates for different types of cannabis businesses such as medical versus adult-use. However, in no event may the City Council set any adjusted rate that exceeds the maximum rate established by Measure D.

The proceeds of the tax imposed by this measure shall be deposited in a special account to only fund police services and code enforcement. The services to be funded by this special tax shall include: police (such as patrol, gang and narcotics enforcement, other police services) and code enforcement (business and community compliance, ordinances and resolutions in such areas as planning, zoning, community nuisance, property maintenance, housing, signs, blight and other related areas). Measure D also requires that the City’s independent auditors complete a financial audit report, by no later than December 31st of each year, which will include the revenue raised and expended by this tax. This tax would continue until repealed by the voters.

If Measure D is approved by a 2/3 majority of the votes cast (67% plus one or more voters), the proposed Cannabis Business Tax would be levied on all persons engaged in cannabis commercial activity starting on January 1, 2019, whether or not done for profit.

A “yes” vote on Measure D would approve the Cannabis Business Tax and authorize the City to establish the maximum tax rates listed above on cannabis businesses if they are allowed to operate in the City in the future.

A “no” vote would reject the Cannabis Business Tax.[2]

—Tracy 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 Tracy, California.

See also

External links

Footnotes

  1. San Joaquin County, "Local Ballot Measures," accessed October 17, 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 Tracy, "CITY ATTORNEY IMPARTIAL ANALYSIS OF MEASURE D," accessed October 17, 2018