Mendocino, Lake, Cloverdale and Point Arena Among Those Trying to Tax Marijuana This Year

More than three dozen local governments are looking to take advantage of what could end up becoming a $6.5 billion marijuana industry by 2020. Cities and counties like Mendocino, Lake, Cloverdale and Point Arena all have cannabis taxes on the Nov. 8 ballot. Sonoma County and Santa Rosa could follow suit next year.

In Mendocino, it’s measures AF and AI. The first would impose moderate regulations on the industry with a 2.5 percent annual tax on gross receipts. AI calls for a 2.5 percent to 10 percent tax on gross receipts for cultivators plus a flat rate of $2,500 per year for other businesses.

In Lake County, voters could opt for a commercial cannabis tax ranging from $1 to $3 per square foot of cultivation. Point Arena could approve a tax of up to 3 percent of gross medical sales and 7 percent of recreational gross sales. Cloverdale’s Measure P would charge all cannabis businesses up to 10 percent of gross receipts, resulting in $500,000 from medical marijuana off the bat and far more if Proposition 64 is approved.

“We’re just getting ahead of the curve, I hope,” said Cloverdale Mayor Mary Ann Brigham, who described legalization as “a locomotive coming down the tracks at you.”

Proposition 64 itself includes a 15 percent sales tax on cannabis consumers and a cultivation tax according to weight of flowers and leaves. It also allows local governments to levy their own taxes, however. And they don't appear to be wasting any time. 


Top Stories


Tuesday, October 31, 2017 - 05:20

A Native American tribe is suing the County of San Joaquin and the Drug Enforcement Agency following the removal of 26 acres of what it claims is industrial hemp being grown for research purposes n