Pubdate: Thu, 04 Aug 2016
Source: Ukiah Daily Journal, The (CA)
Copyright: 2016 The Ukiah Daily Journal
Contact: http://www.ukiahdailyjournal.com/feedback
Website: http://www.ukiahdailyjournal.com/
Details: http://www.mapinc.org/media/581
Author: Adam Randall

TWO MENDOCINO COUNTY MARIJUANA TAX PROPOSALS HEADED TO BALLOT

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.
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MAP posted-by: Jay Bergstrom