California Voters Approve New Marijuana Tax Measures

California voters have approved at least 23 local marijuana measures. Most of them authorize taxes on cultivation, retail, distribution and/or delivery. The approval of new taxes on cannabis is a welcome sign for the industry and its consumers. That’s because, in most cases, these taxes represent the first step in local permitting.

Remember: The majority of California’s cities still do not permit commercial cannabis. The pandemic is changing that. Plunging retail tax revenue has caused cities and counties to give cannabis a second look.

Here are some local marijuana-related measures that have passed or appear to be passing in California:

  • Calaveras County’s Measure G - establishes a marijuana activities tax, not exceeding $7.00 per square foot for cultivation area and 8% of receipts for other marijuana activities
  • Calabasas’ Measure C - establishes a 10% tax on marijuana businesses 
  • Hawthorne’s Measure CC - authorizes a 5% tax on marijuana businesses, which are not yet permitted in Hawthorne
  • Madera’s Measure R - authorizes a tax on marijuana businesses of 6% of gross receipts for retail businesses, no more than $10 per square foot for cultivation, and 4% of gross receipts for other marijuana businesses
  • King City’s Measure C - authorizes a tax of up to 5% of gross receipts for the sale of marijuana and up to 2% for distribution
  • Marina’s Measure G - authorizes restrictions on marijuana businesses' proximity to sensitive sites and maintains a 5% gross receipts tax on marijuana businesses
  • Yountville’s Measure T - authorizes marijuana retail and delivery businesses in the city with a 3% tax on gross receipts 
  • Costa Mesa’s Measure Q - authorizes a 4%-7% tax on gross receipts for retail businesses
  • La Habra’s Measure W - imposes a gross receipts tax of up to 6% on commercial cannabis businesses and allows up to four cannabis delivery licenses
  • Laguna Woods’ Measure V - non-binding expression of support for marijuana dispensaries in the cityes
  • Banning’s Measure L - authoriz a tax of up to 10% on marijuana distribution facilities
  • Encinitas Measure H - authorizes commercial cannabis activities in the city
  • Oceanside’s Measure M - authorizes a tax on marijuana retail, manufacturing, and distribution business (up to 6% for cultivation and up to 3.5% of gross receipts for other businesses) 
  • Ojai’s Measure G - authorizes a 3% tax on marijuana businesses with option of increasing the tax up to 10%
  • Tracy’s Measure W - authorizes marijuana business taxes (6% of gross receipts for retail businesses, 4% of gross receipts for other businesses, and $12 per square foot for canopy for cultivation)
  • Weed’s Measure B - establishes certain regulations on marijuana businesses 
  • Benicia’s Measure D - non-binding support for new marijuana businesses in the city
  • Fairfield’s Measure C - authorizes a marijuana business tax of 6% of gross receipts for retail businesses, 4% of gross receipts for other businesses, and $10 per square foot for cultivation 
  • Vacaville’s Measure W - authorizes a marijuana business tax of 6% of gross receipts for retail businesses, 4% of gross receipts for other businesses, and $10 per square foot for cultivation 
  • Sonoma’s Measure X - 4% tax on gross receipts for marijuana businesses generating an estimated $200,000 per year
  • Trinity County’s Measure G - authorizes new taxes on marijuana cultivation
  • Ventura’s Measure O - authorizes marijuana cultivation and distribution with a tax of 4% of gross receipts for general cultivation and 1% of gross receipts for nursery cultivation
  • Marysville Measure M - authorizes tax on marijuana businesses (6% of gross receipts for retail, 4% of gross receipts for other marijuana businesses, and $10 per square foot for cultivation) 

Comments

Policy

Sunday, November 22, 2020 - 19:00

The California Bureau of Cannabis Control has awarded the University of California, Los Angeles $6.4 million in grants for important cannabis-related research.