A "yes" vote is a vote to adopt the Cannabis Business Tax.
Shall the measure establishing a City of Benicia cannabis business tax at annual rates not to exceed $10.00 per canopy square foot for commercial cannabis cultivation (adjustable for inflation) and 6% of gross receipts for all other cannabis businesses, and estimated to generate approximately $1.46 million annually in tax revenue until ended by voters, to be spent for unrestricted general revenue purposes, including police, fire and emergency services, parks, recreation, and street maintenance, be adopted?
A "yes" vote is a vote to adopt the Cannabis Business Tax.
A "no" vote is a vote against adopting the Cannabis Business Tax and there would be no excise tax imposed on commercial cannabis activities of cannabis businesses.
If adopted by the voters, Measure E would establish a cannabis business tax by adding a new Chapter 3.33 to Title 3 of Benicia's Municipal Code entitled "Cannabis Business Tax."
The measure would authorize the levy of an annual business tax on commercial cannabis cultivation within the City at maximum rates that do not exceed ten dollars ($10) per square canopy foot of cannabis cultivation area or fraction thereof. This maximum rate would be subject to increases for inflation based on a consumer price index maintained by the Bureau of Labor Statistics. The tax on commercial cultivation would not apply to cannabis cultivated privately for personal use. All other commercial cannabis businesses would be subject to a business tax at a rate not to exceed six percent (6%) of the gross receipts of each cannabis business. Cannabis businesses are defined broadly to include all persons and businesses that cultivate, possess, manufacture, process, store, test, label, transport, distribute, deliver, or sell cannabis or cannabis products for commercial purposes and that require a state issued license for operation.
The proposed Cannabis Business Tax is a general tax. The revenues from the tax, therefore, would be placed in the City's general fund and used for unrestricted general revenue purposes including, but not limited to, police, fire, parks, and other community services.
The City finance director would have the responsibility of collecting and enforcing the tax. The measure would also authorize the City Council to decrease any tax amounts by a majority vote of the total membership of the City Council.
In order for the Cannabis Business Tax to be approved, the voters must adopt Measure E by a majority (greater than fifty percent (50%)) vote.
A "yes" vote is a vote to adopt the Cannabis Business Tax.
A "no" vote is a vote against adopting the Cannabis Business Tax and there would be no excise tax imposed on commercial cannabis activities of cannabis businesses.
The above statement is an impartial analysis of Measure E. The full text of Measure E is printed in the Voter's Information Pamphlet and is also available on the City of Benicia's website at: http://www.ci.benicia.ca.us/cityclerk on the Elections subpage. If you desire a copy of the Measure, please call the City Clerk's office at 746-4200 and a copy will be mailed at no cost to you.
/s/ Heather McLaughlin
City Attorney
City of Benicia
Argument In Favor Of Measure E
Voting Yes on Measure E will ensure that cannabis businesses operating in the City of Benicia pay local taxes that benefit the City and the community. A yes vote will amend the Benicia Municipal Code to add a Cannabis Business Tax on all businesses that sell, cultivate, deliver, distribute, test and manufacture cannabis in the City of Benicia. Measure E is estimated to generate up to $1.46 million in annual revenue for the City, revenue that can also be used to help fund important City services, including fire and emergency services, park maintenance, street maintenance, and recreational opportunities. Passing Measure E would also provide the City with financial protection from potential impacts of cannabis businesses, by providing funding to offset any increased police department and code compliance costs.
As a result, Measure E is supported by the City Council of the City of Benicia.
Arguments in support or opposition of the proposed laws are the opinions of the authors.
/s/ Steve Young
Vice Mayor
/s/ Tom Campbell
Council Member
[No official argument against Measure E was filed with the Benicia City Clerk.]
[No rebuttal to the official argument against Measure E was filed with the Benicia City Clerk.]