The measure is estimated to bring in $10,000 annually, which would be used for general city purposes. (Shutterstock)
Calabasans will vote on Measure C, a ballot measure that would impose a 10% tax on cannabis delivery, but would still not allow dispensaries
CALABASAS, CA — This election, Calabasas is asking if it wants to cash in on the state green rush.
Even though cannabis businesses cannot operate within city limits, a ballot initiative known as Tax Measure C would place a 10 percent tax on the yearly gross receipts of businesses delivering products in the city. Under California law, cannabis can be delivered anywhere in the state, even in places like Calabasas where dispensaries are banned. Measure C would not change the ban on dispensaries: it would simply mean that the city would profit from activities it is compelled to permit.
The measure would also tax most cannabis-related activity taking place within the city, including “transporting, dispensing, manufacturing, producing, processing, preparing, storing, testing, providing, donating, selling, or delivering, or distributing” cannabis, cannabis accessories, or any cannabinoid products. The measure would not tax cannabis used for approved medical purposes.
The new tax — which is defined as an excise rather than a sales tax — is estimated to generate roughly $10,000 annually that would be spent for general city services like safety and transportation, which would come at a time when depressed sales tax revenue has caused the city to dip into its reserve funds.
The tax would also be applied to any future dispensaries in Calabasas, should voters ever decide to allow them – or Sacramento forces them to.
“While cannabis sales are currently prohibited in Calabasas, there are proposals pending in Sacramento, which would require the City to allow cannabis sales,” Councilmembers Fred Gaines and David Shapiro wrote in a letter in favor of the measure. “That’s why the City Council voted unanimously to ask Calabasas voters to tax cannabis sales should they ever be allowed.”
Published: October 28, 2020