Pubdate: Thu, 21 Jul 2016
Source: Sacramento News & Review (CA)
Copyright: 2016 Chico Community Publishing, Inc.
Contact:  http://newsreview.com/sacto/
Details: http://www.mapinc.org/media/540
Author: John Flynn

RANCHO CORDOVA PASSES THE DUTCHIE ON DISPENSARY TAX REVENUE

California's Legalization Initiative Sets Possible Deadline for City 
to Reconsider Marijuana Stance

Rancho Cordova is still saying no to marijuana dispensaries-and the 
tax dollars generated by their sales.

At the July 5 city council meeting, City Attorney Adam Lindgren 
submitted a report detailing "significant tax revenue" to elected 
officials who listened politely then decided to uphold their current 
prohibition, citing concerns with violating federal law and the 
drug's increased potency in recent years.

The issue arose anew because of the Adult Use of Marijuana Act, which 
will come before California voters in November. If approved, the 
initiative would allow adults to possess up to 28.5 grams of 
marijuana for recreational use, and would place a 15 percent tax on 
the gross receipts of any retail sale, in addition to any other taxes 
levied by city and county governments.

Sacramento City Councilman Jay Schenirer has proposed tacking on a 3 
to 4 percent tax that the council would decide how to spend. A 
similar proposal fell short on the June ballot.

In Rancho Cordova, medical users must keep grow spaces smaller than 
25 square feet. Aside from that, private, indoor cultivation is 
allowed. Potential growers do have to file a permit, which costs a 
whopping $600 per square foot, in comparison to-say-Long Beach, which 
only charges between $15 and $50 per square foot. Maria Kniestedt, a 
spokeswoman for the city, said there are no permits on file.

Last year, medical marijuana sales in California hit $2.7 billion, 
according to New Frontiers, a marijuana research organization. And 
Lindgren's report stated that Sacramento city made $2.86 million in 
tax revenue off more than 30 dispensaries, despite taxing their 
revenue at just four percent.

In 2015, Colorado earned $1 billion in marijuana sales, which 
translated to $135 million in tax revenue-$35 million of which went 
to public school construction. However, that pales in comparison to 
what California is projected to receive if AUMA succeeds. The 
Department of Finance predicts $1 billion in tax revenue annually.
- ---
MAP posted-by: Jay Bergstrom