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Willits, California, Measure I, Marijuana Business Tax (November 2018)
| Measure I: Willits Marijuana Business Tax |
|---|
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| 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 Mendocino County, California ballot measures City tax on the ballot |
| See also |
| Willits, California |
A marijuana tax was on the ballot for Willits voters in Mendocino County, California, on November 6, 2018. It was approved.
| A yes vote was a vote in favor of authorizing the city to enact taxes of $10 per canopy square foot for marijuana cultivation businesses, 6 percent of gross receipts for marijuana retail businesses, and 4 percent for other marijuana businesses. |
| A no vote was a vote against authorizing the city to enact taxes on marijuana cultivation, retail, and other businesses. |
Election results
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Willits Measure I |
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|---|---|---|---|---|
| Result | Votes | Percentage | ||
|
|
1,156 | 74.68% | ||
| No | 392 | 25.32% | ||
Text of measure
Ballot question
The ballot question was as follows:[1]
| “ |
To fund general municipal expenses such as police, fire, roads and recreation, shall the City of Willits tax cannabis (marijuana) businesses at annual rates not to exceed $10 per canopy square foot for cultivation (adjustable for inflation), 6% of gross receipts for retail cannabis businesses, and 4% for all other cannabis businesses; which is expected to generate an estimated $250,000 to $400,000 annually and will be levied until repealed by the voters or the City Council?[2] |
” |
Impartial analysis
The following impartial analysis of the measure was prepared by the office of the Willits City Attorney:
| “ |
The City of Willits is in the process of expanding its regulation of cannabis businesses operating within the City limits. Currently, all businesses operating in Willits – including approved, lawful cannabis businesses – must pay a general business license tax. The Willits City Council has placed Measure I on the ballot to enact an ordinance (“the Ordinance”) to impose a cannabis-specific business tax, rather than the general business license tax, on cannabis-related businesses operating within the City limits. The Ordinance will not go into effect unless a majority of those voting on the measure vote “yes”. If approved by the voters, the Ordinance will authorize the City Council to establish an excise tax effective January 1, 2019 on any cannabis-related businesses operating in the City, including, but not limited to, cultivation, manufacturing, distribution and dispensary businesses. As an excise tax, the tax will be paid by cannabis businesses. The proposed tax is not a sales or use tax imposed directly on cannabis users or consumers. Businesses that pay the excise tax under the Ordinance will be exempt from the City’s general business tax. The tax does not apply to the personal use of cannabis or the cultivation of cannabis for personal use as authorized under state law. The Ordinance authorizes the City Council to set and adjust the rate of the excise tax up to the maximum tax rates established in the Ordinance. For commercial cultivation, the maximum annual tax rate is $10 per square foot of cannabis cultivation area (adjusted annually by CPI). The other maximum tax rates set forth in the Ordinance are 6% of gross receipts for retail cannabis businesses, and 4% of gross receipts for all other cannabis businesses. The tax rates must be set for a minimum term of two years. At its discretion, the City Council may establish longer terms if desired. The Ordinance requires all persons engaging in a cannabis business in the City to register with the City for purposes of tax collection. The Ordinance incudes procedures for tax reporting, remittance, audit, enforcement and appeal. The tax imposed by the Ordinance is a general tax under state law. All taxes collected under the Ordinance will be placed in the City’s general fund, and may be used for any City purpose. [2] |
” |
| —Willits City Attorney[1] | ||
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 governing officials of Willits, California.
See also
External links
Footnotes
- ↑ 1.0 1.1 Voter's Edge, "Measure I," accessed October 17, 2018
- ↑ 2.0 2.1 Note: This text is quoted verbatim from the original source. Any inconsistencies are attributable to the original source.
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