Katelyn Baker
Well-Known Member
Two marijuana tax proposals are heading for the November ballot after the Mendocino County Board of Supervisors Tuesday agreed to do so.
The board put its own tax measure on the ballot, while the grower-backed measure, the "Mendocino Heritage Initiative," was officially certified for the ballot by the supervisors on its consent calendar.
Besides a tax structure, the Heritage Initiative would also repeal county marijuana ordinances and replace them with a more "comprehensive regulatory framework for medical cannabis cultivation, processing testing, distribution, transportation, delivery and dispensing in the county of Mendocino." It includes a higher plant count and larger growing areas than current county rules.
The county's proposal is asking voters to decide whether or not a general tax should be implemented in the unincorporated areas of the county for all commercial marijuana businesses, medical and recreational, with the latter depending upon voters approving state legalization, beginning on Jan. 1, 2017. Cultivating for personal medical use wouldn't be subject to the tax.
A 2.5 percent tax of gross receipts, which is the revenue from sales, would be taxed per fiscal year for commercial growers, according to the county's measure.
Cultivators growing 2,500 square feet of marijuana would pay a tax of no less than $1,250 per growing cycle. For cultivations of 2,501 square feet, and up to 5,000 square feet, a tax of at least $2,500 per growing cycle would be imposed. A tax of at least $5,000 per growing cycle would be applied to cultivators growing more than 5,001 square feet of marijuana.
The amount could be raised by 2.5 percent annually beginning on July 1, 2020, not to exceed a total tax rate of 10 percent. The supervisors would have to discuss increases at future regularly scheduled public meetings prior to doing so.
Commercial marijuana dispensaries would be subject to 5 percent tax of all gross receipts through June 30, 2020, when the board could also increase the rate in 2.5 percent increments per year, up to a maximum of 10 percent, which also would be discussed at a scheduled meeting.
Manufacturing, nurseries, testing, transporting, distribution and delivery, related to commercial marijuana business, would be taxed a flat rate of $2,500 per fiscal year until June 30, 2020, when the amount of tax would be adjusted up based upon the Consumer Price Index for urban state consumers. Cultivation and commercial dispensaries wouldn't be subject to the CPI adjustment.
County Counsel Katharine Elliott said the board could still make amendments to the tax ordinance after it passes, it just can't add additional taxes without voter consideration.
The proposed Heritage Initiative would only tax each medical cannabis business 2.5 percent of its gross receipts, and 5 percent gross receipts on non-medical cannabis businesses. No annual increases are proposed for the taxes under the Heritage Initiative.
The county's proposed tax includes a supplemental advisory measure, which asks voters if they are in favor of the county using the majority of the revenue collected from the tax for the funding of enforcement of marijuana regulations, enhanced mental health services, repair of county roads and fire and emergency medical services. No breakdown of funds has been determined yet.
Supervisors also revised the language of the advisory measure to include the enforcement of marijuana regulations, and including fire and EMS as potential funding recipients.
News Moderator: Katelyn Baker 420 MAGAZINE ®
Full Article: Two Mendocino County Marijuana Tax Proposals Headed To Ballot
Author: Adam Randall
Contact: (707) 468-3500
Photo Credit: Shutterstock
Website: The Ukiah
The board put its own tax measure on the ballot, while the grower-backed measure, the "Mendocino Heritage Initiative," was officially certified for the ballot by the supervisors on its consent calendar.
Besides a tax structure, the Heritage Initiative would also repeal county marijuana ordinances and replace them with a more "comprehensive regulatory framework for medical cannabis cultivation, processing testing, distribution, transportation, delivery and dispensing in the county of Mendocino." It includes a higher plant count and larger growing areas than current county rules.
The county's proposal is asking voters to decide whether or not a general tax should be implemented in the unincorporated areas of the county for all commercial marijuana businesses, medical and recreational, with the latter depending upon voters approving state legalization, beginning on Jan. 1, 2017. Cultivating for personal medical use wouldn't be subject to the tax.
A 2.5 percent tax of gross receipts, which is the revenue from sales, would be taxed per fiscal year for commercial growers, according to the county's measure.
Cultivators growing 2,500 square feet of marijuana would pay a tax of no less than $1,250 per growing cycle. For cultivations of 2,501 square feet, and up to 5,000 square feet, a tax of at least $2,500 per growing cycle would be imposed. A tax of at least $5,000 per growing cycle would be applied to cultivators growing more than 5,001 square feet of marijuana.
The amount could be raised by 2.5 percent annually beginning on July 1, 2020, not to exceed a total tax rate of 10 percent. The supervisors would have to discuss increases at future regularly scheduled public meetings prior to doing so.
Commercial marijuana dispensaries would be subject to 5 percent tax of all gross receipts through June 30, 2020, when the board could also increase the rate in 2.5 percent increments per year, up to a maximum of 10 percent, which also would be discussed at a scheduled meeting.
Manufacturing, nurseries, testing, transporting, distribution and delivery, related to commercial marijuana business, would be taxed a flat rate of $2,500 per fiscal year until June 30, 2020, when the amount of tax would be adjusted up based upon the Consumer Price Index for urban state consumers. Cultivation and commercial dispensaries wouldn't be subject to the CPI adjustment.
County Counsel Katharine Elliott said the board could still make amendments to the tax ordinance after it passes, it just can't add additional taxes without voter consideration.
The proposed Heritage Initiative would only tax each medical cannabis business 2.5 percent of its gross receipts, and 5 percent gross receipts on non-medical cannabis businesses. No annual increases are proposed for the taxes under the Heritage Initiative.
The county's proposed tax includes a supplemental advisory measure, which asks voters if they are in favor of the county using the majority of the revenue collected from the tax for the funding of enforcement of marijuana regulations, enhanced mental health services, repair of county roads and fire and emergency medical services. No breakdown of funds has been determined yet.
Supervisors also revised the language of the advisory measure to include the enforcement of marijuana regulations, and including fire and EMS as potential funding recipients.
News Moderator: Katelyn Baker 420 MAGAZINE ®
Full Article: Two Mendocino County Marijuana Tax Proposals Headed To Ballot
Author: Adam Randall
Contact: (707) 468-3500
Photo Credit: Shutterstock
Website: The Ukiah
