CA: Marijuana Taxes Make Waves In Pacifica

Ron Strider

Well-Known Member
Off-year election days are typically sleepy affairs, and most Bay Area jurisdictions aren’t going to the polls Tuesday. But in Pacifica, voters will be making decisions on an issue that is causing turbulence around the region.

On the coastal city’s ballot: marijuana taxation, a big concern for cities deciding whether and how to allow recreational sales of the drug after Jan. 1.

The Marijuana Operations Tax, Measure G, would levy a 6 percent tax on recreational and medical cannabis dispensaries’ gross receipts. The City Council could raise that to 10 percent after two years.

Backers estimate the tax would raise $360,000 a year, money that would go into the city’s general fund. The initiative requires a simple majority to pass.

Currently, medical dispensaries in Pacifica don’t have a license to sell marijuana and are functioning illegally, said Police Chief Daniel Steidle. If voters reject Measure G, cannabis operations would not be authorized in Pacifica and medical dispensaries could be shut down.

Jay Pasco, co-owner of Cannabis Wellness Center on Palmetto Avenue, has been a fixture at City Council meetings to show his support for Measure G. Council members put the initiative on the ballot.

“There is a community of cannabis patients we do serve in Pacifica,” Pasco said. “If Measure G does not pass, it would impact us significantly.”

If the measure passes, Pasco said he will apply for state licensing Jan. 1 for both medical and recreational sales.

“Nobody submitted an argument against (the measure), so I think that has a pretty good shot of passing,” said Mayor Mike O’Neill, who supports the measure.

Pacifica would be among the first Bay Area cities to set a tax on recreational dispensaries, seizing an opportunity to enrich treasuries that was made possible by state voters’ approval of Proposition 64 in November 2016. Voters in the Sonoma County town of Cotati are also voting on a marijuana tax measure Tuesday, and a few cities, including Oakland, already tax sales at medical dispensaries.

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