At the general election of November 8, 2016, the voters approved Proposition 64 - The Adult Use of Marijuana Act. In June 2017, the California State Legislature passed a budget trailer bill - SB 94 that integrated the Medical Cannabis Regulation and Safety Act (MCRSA) with the Adult Use of Marijuana Act (AUMA) to create the Medicinal and Adult-Use Cannabis Regulation and Safety Act (MAUCRSA). Under MAUCRSA, a single regulatory system governs the medical and adult use cannabis industry in California.
As of November 9, 2016, the state has allowed each city to expressly ban or allow cannabis operations, including:
Santa Paula & General Marijuana Tax
The City of Santa Paula currently allows testing, but bans all other commercial activities. The City Council members possess the ultimate authority to allow or ban cannabis activities within their jurisdiction; however, before a general marijuana tax can be imposed this year, only a majority vote from the community can approve the tax.
All new taxes on cannabis must comply with Proposition 218.
If a tax measure on cannabis operations is proposed by Council, then the wording of the tax measure must be ready and submitted to Ventura County no later than July 23, 2018 to be on the November 6, 2018 ballot.
Meetings & Timeline
Thursday, February 21, 2019
Staff hosted a Cannabis Town Hall meeting to receive feedback from the public to share with City Council as they consider amending the Cannabis Ordinance. Approximately 100 residents attended the meeting.
Staff with the Cannabis Ad Hoc Committee presented Council with a discussion and consideration to revisit the Cannabis Ordinance. Council made the motion for staff to hold a community town hall meeting before Council revisits the cannabis topic.
In November, Santa Paula voters will be asked to consider Measure N If approved by a majority of Santa Paula voters; Measure N would impose a maximum tax rate on every cannabis business within the City.
For cultivation and processing, a tax of up to twenty-five dollars per square foot of space would be authorized. For whole sale and retail cannabis businesses, Measure N would also impose a ten % gross receipts tax.
In addition, all cannabis businesses must pay a minimum tax of $500 annually. The tax rates set by Measure N can be increased or decreased by the City Council provided they do not exceed the voter-approved maximum rates.
Other Key Points
There are a few other key points:
The City currently prohibits all commercial cannabis activity with the limited exception of cannabis testing. Measure N does not change that or otherwise authorize cannabis businesses to operate in the City.
Measure N would be a "general tax," meaning that the revenue from this tax would be deposited into the City's General Fund and could be used for police enforcement and street repair, among other important funding needs.
Taxes would only be paid by the cannabis businesses.
Conservative estimates for tax revenues generated by the tax are approximately $500,000.
A "yes" vote on Measure N would authorize the imposition of the tax while a "no" vote would not authorize the city to tax marijuana businesses.
Monday, May 21, 2018
The Cannabis Survey results were presented to Council and staff received direction to draft ballot language for cannabis taxation for Council consideration.
Staff hosted a Cannabis Town Hall at the Community Center. The meeting was attended by approximately 100 individuals that expressed their feelings on cannabis through a dot voting system with a panel discussion, public comments, and "Questions and Answers".