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Cloverdale, CA Likely to See Cannabis Tax on November Ballots

Cloverdale, California’s City Council has informally agreed to a ballot measure that, if passed, would approve a tax on cannabis operations in the municipality. Officials say it would help boost the general fund to pay for services such as police, parks, libraries, streets and programs for youth and seniors, the Press Democrat reports.

The plan would raise a 10 percent tax on gross receipts, in addition to the 8.25 percent sales, which officials estimate could be $150,000 per year from a single dispensary.

Medical marijuana dispensaries are currently prohibited in the city, but that would change if voters pass the cannabis tax. Officials are also looking at imposing taxes on commercial cultivation, distribution, operations, delivery, and testing businesses. There are 18 cities in California with cannabis taxes.

Mayor Mary Ann Brigham indicated she would allow dispensaries, but wasn’t sure whether they would be allowed in commercial-use areas or downtown.

City Attorney Jose Sanchez said officials would likely have to collect the tax payments from business owners in cash, in person, at a bank, due to federal banking laws that treat cannabis sales as illegal gains.

Californians will vote on legalizing cannabis for recreational use this November. If passed, it is likely that more California towns and counties will impose their own marijuana taxes.

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