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Cannabis Business Tax
City of Santa Cruz
Majority Approval Required
Pass: 9,076 / 82.08% Yes votes ...... 1,981 / 17.92% No votes
Index of all Measures
|Results as of November 5 12:22am, 100.00%% of Precincts Reporting (36/36)|
|Information shown below: Fiscal Impact | Impartial Analysis | Arguments | Full Text|
To protect the quality of life in the City of Santa Cruz and to fund essential city services such as police, fire, emergency response, youth and senior programs, job creation, housing, and environmental protection, shall an ordinance be adopted to impose a tax of no more than 10% (7% when enacted) on gross receipts of cannabis (marijuana) businesses in the city, subject to audits, with all funds staying local?
Use of the Funds. The cannabis business tax revenue would be held in the City's General Fund and used solely for primary support services that include Police, Fire, Public Works, Parks & Recreation, community programs and other essential services.
Fiscal Impact. The fiscal impact of this tax cannot be accurately estimated because the City currently has limited access to gross receipts records of cannabis businesses. However, when compared to sales tax data, and based on the zoning limitation of no more than two legally active cannabis businesses, it is estimated that the 7% tax rate could generate approximately $33,000 in new revenue in the first, partial, fiscal year and $66,000 to $93,000 for a full tax year. (The ordinance applies to all cannabis businesses operating in the City, whether or not they are doing so legally.) The cannabis businesses will be required to file a statement of gross receipts, and pay the business tax on a monthly basis to the City. A penalty plus interest will be imposed if the tax is not paid timely.
There will be additional administrative costs to set up reporting procedures as well as perform routine collection and financial audits. These City costs are estimated to be approximately $2,200 annually. Additional costs may be incurred for any enforcement actions.
Accountability. The City's Finance Director is the tax administrator, and has the authority to examine the books and records of the cannabis businesses to verify the accuracy of the statement of gross receipts that was filed and the business tax computed thereon. The Finance Director also has the authority to issue an assessment to a cannabis business for the estimated amount of tax owed if a statement is not filed and a tax is not paid by the business.
s/ Marcus A Pimentel
This ballot measure has been placed on the ballot by the Santa Cruz City Council.
s/ John G. Barisone
|Arguments For Measure L||Arguments Against Measure L|
|VOTE YES ON MEASURE L - THE CANNABIS BUSINESS TAX
For over two decades Santa Cruz voters have overwhelmingly supported state and local laws that provide for safe, compassionate access to medical cannabis for people in our community whose medical challenges could be alleviated in this way.
The City has been at the forefront of creating laws by which cannabis may be responsibly provided by prescription, without creating a public nuisance. These existing ordinances attempt to balance the needs of medical patients, caregivers, and legitimate medical cannabis businesses, with the need to protect our neighborhoods and open spaces from illegitimate and illegal operators who damage our forests, divert our streams, and act without respect for our community.
In recent years the prolonged economic recession caused major reductions in city services. Measure L will provide new revenues which may be used for many general purposes, such as public safety, environmental protection, fire services, and community programs. All revenue collected will stay local, to protect and maintain our neighborhoods, business districts, parks and open spaces.
This tax is paid by the cannabis businesses -- not patients, caregivers or those who purchase cannabis for personal use.
Measure L creates a business tax only for cannabis businesses, not all businesses. It does not authorize new cannabis dispensaries or businesses. Measure L is nearly identical to the proposed cannabis business tax being considered in the unincorporated county. Passage of the tax ensures consistent regulation across our region.
State law requires that any new tax must be approved by the voters. Measure L is supported unanimously by the City Council, and will help support essential services to benefit our community.
Join us in voting YES ON MEASURE L.
s/ Rick Martinez
No arguments against Measure L were submitted.
|Full Text of Measure L|
|If you would like to read the full text of this measure, please visit this page of the Santa Cruz County's Elections Office Web site http://www.votescount.com/nov14/meal.pdf|