Sonoma County Voters Approve Marijuana Business Tax

Voters in unincorporated Sonoma County overwhelmingly approved a business tax on medical and recreational cannabis Tuesday. Measure A, which passed with 72 percent, will allow a maximum 10 percent tax on gross receipts for marijuana grows and other cannabis enterprises. The revenue, county leaders said, will help fund roads, housing and vital public safety services.

Measure A was opposed by the Sonoma County Growers Alliance, which said a 10 percent tax was too burdensome. As a result of the vote, the group expects cannabis entrepreneurs to explore venues outside of the county for business. The organization is also concerned about the permitting process. Officials have not yet hammered out the details on that.

Measure A will initially impose a tax rate of 5 percent, which is expected to generate $6.3 million in annual revenue. Under the maximum 10 percent rate, expected revenue is $15.6 million.

Read more about the new tax here