CA: LA County Measure Now On November Ballot Would Tax Marijuana To Help Homeless

Katelyn Baker

Well-Known Member
After a nearly four-hour public hearing Tuesday, the Los Angeles County Board of Supervisors agreed to place a measure on the November ballot to tax legalized marijuana to bolster local funds for homeless services.

The board voted 3-2 to levy a countywide tax on recreational cannabis should California voters pass the Adult Use of Marijuana Act Initiative in the November election. Based on rough estimates, a 5 to 10 percent sales tax on recreational marijuana, for example, is projected to generate between $78 million and $130 million annually.

"I personally want something on the November ballot that brings money in to help us fund the services that we must have to fight homelessness," said Supervisor Sheila Kuehl, who voted in favor of the measure.

Kuehl noted that even though the board had many questions - such as how and when the money could be collected on businesses, and if their action pushes cannabis sales into the black market - she said it was important to move forward.

"The questions raised by this motion do not have to be answered before this board takes the action to put this tax on the ballot," Kuehl said. "I believe it's time to do this now."

Supervisors Don Knabe and Hilda Solis agreed, while Mark Ridley-Thomas and Michael D. Antonovich voted against the measure. Antonovich said he preferred instead to look to the county's $28 billion budget to find other funding streams.

Kuehl's position came into contrast with supervisor Ridley-Thomas, who said there was too much uncertainty surrounding revenues generated by a tax on legal marijuana businesses. He favored a quarter-cent sales tax option, which appeared to be supported by the more than 100 people who spoke at a public hearing, including many from organizations that help the homeless, business groups, and those who live on the streets.

An estimated $355 million could be generated by a quarter-cent sales tax, county officials estimated.

"The least effective method happens to be the discussion on marijuana," Ridley-Thomas said. "You've heard the numbers."

Should recreational marijuana become law, he added, then it was wise to look at those businesses as a tax resource. But until then, it was too early.

"What's before us today is putting the cart before the horse," Ridley-Thomas said. "It's jumping the gun."

Besides marijuana and a sales tax, the board had considered several options to try to raise an estimated $450 million a year needed to provide services for the homeless, with everything from quicker housing placement to medial and mental health care needs. A proposed 3 cent per-square-foot parcel tax was estimated to raise $272 million a year but that option was withdrawn Tuesday.

Kuehl, Solis, and Ridley-Thomas had also hoped to tax the county's top income earners, which would require a simple majority in the Legislature to change state law. But lawmakers ended the session in June without taking up the issue.

The option to place a marijuana tax on the November ballot came with opposition from groups such as Americans For Safe Access, the nation's largest medical cannabis patient advocacy organization. Group spokeswoman Sarah Armstrong said Los Angeles County medical marijuana users could see a 25 percent tax on their purchases.

"It's seems unfair to tax a segment that could remain homeless as a result of their illness," Armstrong said. "Please remove the medical marijuana tax. You have other options. Medical marijuana patients are already taxed."

Los Angeles County Sheriff Jim McDonnell, also opposed the option.

"We must take action to provide decent housing and restore dignity to those forced to live in such unsafe and deplorable conditions," McDonnell said in a letter read to the board. "However, I am strongly opposed to the legalization of marijuana and therefore any initiative that proposes taxation of it, as a prudent strategy to mitigate and prevent homelessness."

With more than 40,000 people living in tents, in their cars and sleeping on the streets, city and county officials declared homelessness an emergency last year. The county dedicated $150 million to bolster services this year, but supervisors say a steady funding stream is needed to continue programs.

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Full Article: LA County Measure Now On November Ballot Would Tax Marijuana To Help Homeless
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