Recreational marijuana, if California voters legalize it in November, may end up being taxed in Long Beach, but medical marijuana won't.
The City Council voted unanimously Tuesday night to place a recreational marijuana tax on the Nov. 2 ballot, but it would go into effect only if California voters approve Proposition 19 at the same time. More than 50percent of Long Beach voters would have to approve the tax for it to pass.
Recreational marijuana businesses would be taxed 15percent of their gross revenues - an increase proposed by 4th District Councilman Patrick O'Donnell over the 10percent that originally had been on the table. Also, cultivation sites would pay $25 per square foot, and a minimum $1,000 business license tax would be applied to the businesses.
However, the unanimous vote wasn't the council's original decision. The council initially voted to snuff out the proposed marijuana tax on both recreational and medicinal pot with a 4-4 tie, before later in the meeting rescinding its vote and trying again without the medical marijuana tax.
It all started with the council's failure to get a unanimous vote declaring a fiscal emergency, which was necessary to put a general tax on the November ballot that would only need 50percent voter approval. The council then deadlocked 4-4 on a tax measure that would have needed two-thirds' voter approval.
The unanimous fiscal emergency declaration was needed by law because November's election is statewide and isn't Long Beach's regular municipal election. Long Beach faces a projected $18.5million deficit in the coming fiscal year and further deficits at least through 2014.
As was expected, 5th District Councilwoman Gerrie Schipske cast the lone vote against declaring the fiscal emergency because she is opposed to taxing medical marijuana. She referenced the interpretation of state law that was made in the months leading up to the council's March approval of new rules to regulate medical marijuana collectives.
"I have some serious questions about how we can call this a purchase," Schipske said. "We're not supposed to be selling."
When the council then considered placing a marijuana tax on the November ballot that would need more than two-thirds' voter approval to pass, some members who had supported the tax at a 50 percent approval threshold backed down. With 7th District Councilman James Johnson absent, the 4-4 vote meant the ballot measure failed.
Along with Schipske, Council members Gary DeLong, Patrick O'Donnell and Dee Andrews voted against the measure. Council members Robert Garcia, Suja Lowenthal, Rae Gabelich and Steve Neal voted in favor, though Garcia said he is against the tax but wanted to let voters decide.
Asked away from the dais why he changed his vote, DeLong said it was because of the cost of placing the tax on the ballot paired with its slim chances of passing.
"I just didn't think it was achievable in today's environment," DeLong said.
Under the original proposal, medical marijuana collectives would have had to pay 5 percent of their gross revenues.
Several medical marijuana users and Los Angeles County Sheriff Lee Baca showed up at City Hall in a strange show of unity to speak against taxing medical marijuana, though perhaps for different reasons. Baca also said Long Beach shouldn't tax recreational marijuana either.
"The truth is that the system is illegal as it currently stands," Baca said, adding that no money should be changing hands for marijuana at all, even in the form of donations.
NewsHawk: Ganjarden: 420 MAGAZINE
Source: Press - Telegram
Author: Paul Eakins
Copyright: 2010 Los Angeles Newspaper group
The City Council voted unanimously Tuesday night to place a recreational marijuana tax on the Nov. 2 ballot, but it would go into effect only if California voters approve Proposition 19 at the same time. More than 50percent of Long Beach voters would have to approve the tax for it to pass.
Recreational marijuana businesses would be taxed 15percent of their gross revenues - an increase proposed by 4th District Councilman Patrick O'Donnell over the 10percent that originally had been on the table. Also, cultivation sites would pay $25 per square foot, and a minimum $1,000 business license tax would be applied to the businesses.
However, the unanimous vote wasn't the council's original decision. The council initially voted to snuff out the proposed marijuana tax on both recreational and medicinal pot with a 4-4 tie, before later in the meeting rescinding its vote and trying again without the medical marijuana tax.
It all started with the council's failure to get a unanimous vote declaring a fiscal emergency, which was necessary to put a general tax on the November ballot that would only need 50percent voter approval. The council then deadlocked 4-4 on a tax measure that would have needed two-thirds' voter approval.
The unanimous fiscal emergency declaration was needed by law because November's election is statewide and isn't Long Beach's regular municipal election. Long Beach faces a projected $18.5million deficit in the coming fiscal year and further deficits at least through 2014.
As was expected, 5th District Councilwoman Gerrie Schipske cast the lone vote against declaring the fiscal emergency because she is opposed to taxing medical marijuana. She referenced the interpretation of state law that was made in the months leading up to the council's March approval of new rules to regulate medical marijuana collectives.
"I have some serious questions about how we can call this a purchase," Schipske said. "We're not supposed to be selling."
When the council then considered placing a marijuana tax on the November ballot that would need more than two-thirds' voter approval to pass, some members who had supported the tax at a 50 percent approval threshold backed down. With 7th District Councilman James Johnson absent, the 4-4 vote meant the ballot measure failed.
Along with Schipske, Council members Gary DeLong, Patrick O'Donnell and Dee Andrews voted against the measure. Council members Robert Garcia, Suja Lowenthal, Rae Gabelich and Steve Neal voted in favor, though Garcia said he is against the tax but wanted to let voters decide.
Asked away from the dais why he changed his vote, DeLong said it was because of the cost of placing the tax on the ballot paired with its slim chances of passing.
"I just didn't think it was achievable in today's environment," DeLong said.
Under the original proposal, medical marijuana collectives would have had to pay 5 percent of their gross revenues.
Several medical marijuana users and Los Angeles County Sheriff Lee Baca showed up at City Hall in a strange show of unity to speak against taxing medical marijuana, though perhaps for different reasons. Baca also said Long Beach shouldn't tax recreational marijuana either.
"The truth is that the system is illegal as it currently stands," Baca said, adding that no money should be changing hands for marijuana at all, even in the form of donations.
NewsHawk: Ganjarden: 420 MAGAZINE
Source: Press - Telegram
Author: Paul Eakins
Copyright: 2010 Los Angeles Newspaper group
