The City of El Monte City Council has submitted a special tax measure to its voters entitled: Cannabis Business Tax for Public Safety, Parks and Youth Programs ("Measure"). The Measure would add Chapter 3.30 (Cannabis Business Tax) to the City Code to impose a gross receipts tax on commercial cannabis businesses operating within the City ("Cannabis Tax").
As a special tax, Cannabis Tax proceeds would be deposited into a separate City account to be used solely and exclusively for:
- City public safety uses, services, and programs, including, but not limited to: the Transient Outreach Using Community Hands (TOUCH) homeless outreach program; the augmentation of special investigations related to violent and narcotic related criminal activity; the Teaching Obedience Respect Courage and Honor (TORCH) community-based program; the Volunteers Caring and Patrolling (VCAP) community-based program; public safety equipment (e.g. surveillance cameras); public safety staffing; youth diversion programs; drug abuse prevention and education; and
- City parks, recreation, and youth uses, services, and programs, including, but not limited to: after-school programming; parks maintenance and improvement; new park development; youth, teen, and adult sports; senior services; summer teen programs; and education and job training.
The Cannabis Tax would be due and payable by businesses in quarterly installments. The City would have authority to audit and examine all financial records. Interest and penalties would apply for nonpayment of the Cannabis Tax. The City would be required to publish an annual report indicating Cannabis Tax revenue, expenditures, and the status of projects funded by the Cannabis Tax.
For retailers of cannabis or cannabis products, the Measure would impose a 5% Cannabis Tax on gross receipt sales. The Measure would authorize the City Council to increase or decrease the Cannabis Tax rate for retailers, not to exceed 9%.
For commercial cannabis cultivation, the Measure would levy a 3% Cannabis Tax on gross receipts and authorize the City Council to increase or decrease the Cannabis Tax rate for cultivators, not to exceed 6%.
The Measure would establish a 3% Cannabis Tax on gross receipts for commercial cannabis manufacturing and authorize the City Council to increase or decrease the Cannabis Tax rate for manufacturers, not to exceed 6%.
For commercial cannabis distribution, the Measure would impose a 2% Cannabis Tax on gross receipts and authorize the City Council to increase or decrease the Cannabis Tax rate for distributors, not to exceed 5%.
The Measure would establish a 2% Cannabis Tax on gross receipts for commercial cannabis laboratory testing and authorize the City Council to increase or decrease the Cannabis Tax rate for laboratories, not to exceed 5%.
Two-thirds (66.67%) majority of votes cast is necessary to approve the Measure.
A "yes" vote would approve the Cannabis Tax.
A "no" vote would reject the Cannabis Tax.
