Katelyn Baker
Well-Known Member
Salinas - Proposed Monterey County medical marijuana regulations now under consideration by the Board of Supervisors are likely dependent on a general commercial medical cannabis tax measure estimated to raise at least $30 million per year, a key source of financing for administration and enforcement of the proposed new rules.
On Tuesday, the supervisors are set to conduct a public hearing to consider the proposed medical marijuana rules, which have been vetted through a series of public forums and Planning Commission hearings, along with a tax measure.
The hearing, set for the board's morning session at 10:30 a.m., is to include consideration of a negative declaration on the proposed new rules and an introductory reading of the ordinances at the core of the draft rules, as well as the proposed tax measure. The board would then presumably adopt the final rules and place the tax measure on the Nov. 8 presidential election ballot.
Under the proposed new rules, drafted largely by an ad-hoc committee led by Supervisors Dave Potter and John Phillips, all commercial medical cannabis operations would be limited to specific zoning districts. They would be required to acquire a use permit, and annual business permits and licenses. Personal cultivation would also be required to acquire a use permit. The rules would limit cultivation to existing greenhouses and other indoor facilities, though a staff report suggests the ad-hoc committee would eventually consider rules for allowing outdoor growing.
While there are no pre-set limits on the number of permits to be issued, staff estimates 150-300 permits could be issued under the proposed rules.
Late last month, the Planning Commission declined to endorse the draft rules, arguing that they were too restrictive. The commission recommended the supervisors not adopt the rules while making a number of suggested changes. Several commissioners expressed frustration they had not had adequate time to review and recommend changes to the draft rules. They noted the board had dictated they consider a recommendation by the end of June to allow time for the supervisors to consider them, and the proposed tax measure, this month ahead of the Aug. 12 deadline for placing the tax on the fall ballot.
Developed with the help of consultant HdL and Associates, the tax would be phased in over a five-year period. For sales, the tax would start at 5 percent of gross receipts per fiscal year effective Jan. 1, and increasing 2.5 percent every fiscal year beginning July 1, 2020, to a maximum rate of 10 percent. For general cultivation, the tax rate would start at $15 per square foot of canopy, or growing area effective Jan. 1, and increase by $5 every fiscal year beginning July 1, 2020, to a maximum rate of $25 per square foot. Nursery cultivation involving only clones, immature plants, seeds and other agricultural products used for general cultivation, would be taxed at $2 per square foot of canopy up to a maximum of $5 per square foot.
According to a staff report, the tax revenue estimated at a minimum of $30 million per year would be used to help defray the estimated $3.5 million annual cost of implementation of the rules, including permit processing and enforcement, because permit fees are estimated to bring in just $650,000. Permit fees are still being developed and are expected to be considered in the next two months. The rest would presumably go to the county's general fund.
The ad hoc committee has recommended tying implementation of the proposed new medical cannabis rules to passage of the tax measure, which would require a simple majority for approval.
The proposed rules and tax, if adopted, would also apply to recreational marijuana operations if a proposed initiative on the fall ballot is approved.
News Moderator: Katelyn Baker 420 MAGAZINE ®
Full Article: Proposed Monterey County Medical Marijuana Rules Likely To Be Tied To Tax Measure
Author: Jim Johnson
Contact: (831) 372-3311
Photo Credit: Brent Lewin
Website: Monterey Herald
On Tuesday, the supervisors are set to conduct a public hearing to consider the proposed medical marijuana rules, which have been vetted through a series of public forums and Planning Commission hearings, along with a tax measure.
The hearing, set for the board's morning session at 10:30 a.m., is to include consideration of a negative declaration on the proposed new rules and an introductory reading of the ordinances at the core of the draft rules, as well as the proposed tax measure. The board would then presumably adopt the final rules and place the tax measure on the Nov. 8 presidential election ballot.
Under the proposed new rules, drafted largely by an ad-hoc committee led by Supervisors Dave Potter and John Phillips, all commercial medical cannabis operations would be limited to specific zoning districts. They would be required to acquire a use permit, and annual business permits and licenses. Personal cultivation would also be required to acquire a use permit. The rules would limit cultivation to existing greenhouses and other indoor facilities, though a staff report suggests the ad-hoc committee would eventually consider rules for allowing outdoor growing.
While there are no pre-set limits on the number of permits to be issued, staff estimates 150-300 permits could be issued under the proposed rules.
Late last month, the Planning Commission declined to endorse the draft rules, arguing that they were too restrictive. The commission recommended the supervisors not adopt the rules while making a number of suggested changes. Several commissioners expressed frustration they had not had adequate time to review and recommend changes to the draft rules. They noted the board had dictated they consider a recommendation by the end of June to allow time for the supervisors to consider them, and the proposed tax measure, this month ahead of the Aug. 12 deadline for placing the tax on the fall ballot.
Developed with the help of consultant HdL and Associates, the tax would be phased in over a five-year period. For sales, the tax would start at 5 percent of gross receipts per fiscal year effective Jan. 1, and increasing 2.5 percent every fiscal year beginning July 1, 2020, to a maximum rate of 10 percent. For general cultivation, the tax rate would start at $15 per square foot of canopy, or growing area effective Jan. 1, and increase by $5 every fiscal year beginning July 1, 2020, to a maximum rate of $25 per square foot. Nursery cultivation involving only clones, immature plants, seeds and other agricultural products used for general cultivation, would be taxed at $2 per square foot of canopy up to a maximum of $5 per square foot.
According to a staff report, the tax revenue estimated at a minimum of $30 million per year would be used to help defray the estimated $3.5 million annual cost of implementation of the rules, including permit processing and enforcement, because permit fees are estimated to bring in just $650,000. Permit fees are still being developed and are expected to be considered in the next two months. The rest would presumably go to the county's general fund.
The ad hoc committee has recommended tying implementation of the proposed new medical cannabis rules to passage of the tax measure, which would require a simple majority for approval.
The proposed rules and tax, if adopted, would also apply to recreational marijuana operations if a proposed initiative on the fall ballot is approved.
News Moderator: Katelyn Baker 420 MAGAZINE ®
Full Article: Proposed Monterey County Medical Marijuana Rules Likely To Be Tied To Tax Measure
Author: Jim Johnson
Contact: (831) 372-3311
Photo Credit: Brent Lewin
Website: Monterey Herald
