Union City, California, Measure DD, Marijuana Business Tax (November 2018)
| Measure DD: Union City Marijuana Business Tax |
|---|
|
| The basics |
| Election date: |
| November 6, 2018 |
| Status: |
 Approved
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| Topic: |
| Local marijuana tax |
| Related articles |
| Local marijuana tax on the ballot November 6, 2018 ballot measures in California Alameda County, California ballot measures City tax on the ballot |
| See also |
| Union City, California |
A marijuana business tax measure was on the ballot for Union City voters in Alameda 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 rates of $12.00 per square foot for cultivation and 6 percent of gross receipts for other businesses to fund general municipal services. |
| A no vote was a vote against authorizing the city to tax marijuana businesses at rates of $12.00 per square foot for cultivation and 6 percent of gross receipts for other businesses. |
Election results
|
Union City Measure DD |
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|---|---|---|---|---|
| Result | Votes | Percentage | ||
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15,125 | 74.72% | ||
| No | 5,116 | 25.28% | ||
-
- Results are officially certified.
- Source
Text of measure
Ballot question
The ballot question was as follows:[1]
| “ |
To maintain/enhance essential city services including 911 dispatch/neighborhood police patrols/emergency response times; after-school programs for children/teens; keeping fire stations open full time; and other essential services shall a measure be adopted establishing a Union City cannabis business tax at a maximum rate of $12.00 per square foot for cultivation and 6% of gross receipts for others, until ended by voters, providing $1,400,000 annually, requiring oversight and no money for Sacramento? [2] |
” |
Impartial analysis
The following impartial analysis of the measure was prepared by the office of the Union City City Attorney:
| “ |
The City Council of the City of Union City is submitting to the voters the question of whether to approve an ordinance that would enact a cannabis business tax (the “Ordinance”) on cannabis-related businesses operating within the City. The City Council has already separately approved a process for potentially permitting cannabis businesses. The Ordinance would authorize a tax on those businesses allowed to operate. The Ordinance adds Chapter 3.24 to the Union City Municipal Code and establishes an excise tax on cannabis businesses in Union City including: commercial cultivators, manufacturers, distributors, retailers, and testing laboratories. The Ordinance does not impose any sales or use taxes directly on cannabis users or consumers. The excise tax does not apply to the use of cannabis or the cultivation of cannabis for personal use as authorized by state law. For commercial cultivation, the initial tax rate will range, depending on the type of cultivation activity, from two dollars ($2) per square foot and eight dollars ($8) per square foot of cannabis cultivation space and up to a maximum rate of a range, depending on the type of cultivation activity, of four dollars ($4) per square foot and twelve dollars ($12) per square foot of cannabis cultivation space. The annual maximum tax rate is adjusted upward annually by the annual percentage change in the Consumer Price Index beginning July 1, 2021. Initial and maximum tax rates will apply to other specific types of cannabis businesses as follows: an initial rate of one percent (1%) of gross receipts up to two and a half percent (2.5%) of gross receipts for testing laboratories; an initial rate of two percent (2%) of gross receipts up to three percent (3%) of gross receipts for distribution; an initial rate of four percent (4%) of gross receipts up to five percent (5%) of gross receipts for manufacturing; and an initial rate of four percent (4%) of gross receipts up to six percent (6%) of gross receipts for retail. The Ordinance allows the Council to increase or decrease the tax rates by resolution as long as they do not exceed the maximum rates. The Ordinance includes procedures for tax reporting, remittance, enforcement, and appeals. Measure DD is a general tax. Therefore, the revenue from the tax will be deposited into the City’s general fund and may be used to maintain city services, including: 911 dispatch/neighborhood police patrols/emergency response times; after-school programs for children/teens; and keeping fire stations open full time. A “Yes” vote is a vote to establish a tax on cannabis businesses permitted in the City. A “No” vote is a vote against the tax. Measure DD would be approved if it received a simple majority of “Yes” votes.[2] |
” |
| —Union City City Attorney[3] | ||
Full text
The full text of the measure is available here.
Path to the ballot
This measure was put on the ballot through a vote of the city council of Union City, California.
See also
External links
Footnotes
- ↑ Alameda County, "Election Information," accessed September 5, 2018
- ↑ 2.0 2.1 Note: This text is quoted verbatim from the original source. Any inconsistencies are attributable to the original source.
- ↑ Alameda County, "Measure DD Text," accessed September 6, 2018
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