Politics & Government
Marijuana Tax Approved By Santa Rosa Voters
The tax on cannabis businesses required majority approval.
SONOMA COUNTY, CA -- Santa Rosa residents overwhelmingly approved a tax on marijuana businesses in voting that ended Tuesday. Measure D got 77.5 percent approval.
The tax that is capped at $3,000 per year required majority approval. The tax will be $25 per square foot of growing area or up to 8 percent of gross receipts on manufacturing, distribution or dispensary businesses.
The tax does not apply to the use of cannabis or cultivation of cannabis for personal use as authorized under state law.
Find out what's happening in Sonoma Valleyfor free with the latest updates from Patch.
The City Council can set different tax rates under 8 percent for medical, recreational, indoor or outdoor cultivation under Measure D.
The City Council also may periodically increase or decrease the tax on cannabis businesses. A vote of at least five members of the seven-member Council is required if a proposed tax increase results in a tax
rate that is more than 5 percent of gross receipts.
Find out what's happening in Sonoma Valleyfor free with the latest updates from Patch.
The tax is considered a general tax under state law and may be used for any city purpose. There currently are no estimates on the amount of estimated revenue from the tax.
The Santa Rosa City Council supported Measure D. In a statement, Mayor Chris Coursey said it is a "clear, fair and easy-to-follow legal framework that will encourage cannabis businesses to join the regulated market, ensuring protection for consumers, the environment and public health."
Coursey said the tax will protect the city's budget from new or unexpected costs associated with cannabis legalization and permitting without hurting investment in core city services such as maintaining infrastructure and public safety.
There was no organized opposition to Measure D. The Santa Rosa City Council recently balked at prohibiting marijuana grows in residential areas after an immediate outcry from small cultivators.
The imposition of the taxes takes effect only when implemented by resolution of the City Council.
Voters in unincorporated Sonoma County overwhelmingly approved a 10 percent tax on cannabis business in March. It received 72 percent approval.
By Bay City News Service
Image via Shutterstock
