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West Hollywood, California, Measure Y, Marijuana Tax (March 2019)

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Local ballot measure elections in 2019
Measure Y: West Hollywood Marijuana Tax
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The basics
Election date:
March 5, 2019
Status:
Approveda Approved
Topic:
Local marijuana tax
Related articles
Local marijuana tax on the ballot
March 5, 2019 ballot measures in California
Los Angeles County, California ballot measures
City tax on the ballot
See also
West Hollywood, California

A marijuana tax measure was on the ballot for West Hollywood voters in Los Angeles County, California, on March 5, 2019. It was approved.

A yes vote was a vote in favor of authorizing the city to tax marijuana businesses at a rate of 7.5 percent on annual gross receipts.
A no vote was a vote against authorizing the city to tax marijuana businesses at a rate of 7.5 percent on annual gross receipts.

Election results

West Hollywood Measure Y

Result Votes Percentage

Approved Yes

4,541 76.31%
No 1,410 23.69%
Results are officially certified.
Source


Text of measure

Ballot question

The ballot question was as follows:[1]

Shall an ordinance be adopted establishing a Cannabis Business Tax on gross receipts from the sale of adult-use cannabis and adult-use cannabis products, at a rate of 7.5%, estimated to raise $5,500,000 annually to be used locally to fund general municipal services in West Hollywood such as public safety, street repair, homeless services, pedestrian/bike safety, and parks, until ended by voters and subject to annual public review of spending and independent financial audits?[2]

Impartial analysis

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

Measure Y was placed on the ballot by the West Hollywood City Council and, if approved by a majority of West Hollywood voters, will amend the City’s Municipal Code to impose a local gross receipts tax on the sale of adult-use cannabis and adult-use cannabis products by cannabis businesses operating within the City. Measure Y is a revenue-raising measure only. It does not amend the City’s existing cannabis land use or business licensing regulations or otherwise authorize new or additional types of cannabis businesses to operate within the City.

If approved, Measure Y would impose a business tax on every cannabis business operating within the City, regardless of its form, of a maximum of seven and one-half percent (7.5%) of all gross receipts on adult-use cannabis and adult-use cannabis products, except that the business tax would not apply to gross receipts on medical cannabis and medical cannabis products.

If approved, the above tax rate can be increased or decreased by the City Council, provided that the City Council cannot exceed the voter-approved maximum rate of seven and one-half percent (7.5%) of gross receipts. An increase to the maximum tax rate above seven and one-half percent (7.5%) would require approval by the West Hollywood voters at a future election.

Measure Y 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 governmental operations and services. If approved, Measure Y is anticipated to generate approximately $5,500,000 annually in revenue to the City. Pursuant to state law, a majority of votes cast is required to adopt this general tax.

The City currently allows all of the adult-use cannabis activities proposed to be taxed, subject to issuance of land use approvals and a business license.

A “yes” vote on Measure Y is to approve the cannabis business tax. A “no” vote on Measure Y is to reject the cannabis business tax.[2]

—West Hollywood 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 West Hollywood City Council on November 5, 2018.[4]

See also

External links

Footnotes