Local Jurisdictions Continue to Look to Cannabis Taxes to Fund Basic Programs
Many local governments in California continue to feel pinched by mounting expenses and decreased revenue from state and federal programs. While schools crumble and roads need repair, voters have refused to enact new taxes to fix local infrastructure and deal with crime and educational problems.
All Cannabis Tax Measures Pass Easily
Voters seem eager, however, to enact new cannabis taxes. The primary election in California on June 5, 2018 had several cannabis-related measures that passed easily:
- Measure T, Santa Barbara County passed with 75.7% of the votes. The measure gives the county supervisors the power to pass tax ordinance. The rate is not yet specified and will be set by any new ordinance.
- Measure B-18, San Luis Obispo County passed with 78.3% of the votes. This measure allows for a 4% business tax on cannabis gross receipts starting in July 2018. The tax will increase 2% ever year until the tax is a maximum of 10%.
- Measure CC in Pasadena passed with 59.9% the votes. The measure allows for six new dispensaries within city limits.
- Measure DD in Pasadena passed with 75.5% of the votes. This measure allows the city to collect a 6% business tax on retail cannabis sales, and a 4% on other cannabis-related businesses.
While cannabis taxes sail through elections, other tax measures aren’t so lucky. Lake County voters took down Measure G, with only 38.3% of the voters approving the proposed 1.5% increase in sales and use tax.