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Items On City Council Agenda- Tuesday

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SUBJECT:  CITY MARIJUANA BUSINESS INITIATIVE

RECOMMENDATION:  Adopt City Council Resolution 2018-, ordering the submission to the qualified electors of the City an ordinance entitled “An Ordinance of the People of the City of Vista, California,  Amending Title 7 of the Vista Municipal Code to Add Chapter 7.20 Entitled `Medicinal Cannabis Businesses”‘

PRIOR ACTION:  On May 29, 2018, conducted a workshop and directed staff to revise certain elements  of the draft taxation and marijuana business ballot measures for consideration (No Vote).

Please refer to Exhibit 1 for a complete list of prior City Council actions.

   http://records.cityofvista.com/WebLink/0/doc/1608823/Page1.aspx  

DISCUSSION:  In response to the City Council’s direction on May 29, 2018, the City Attorney has prepared a final version of the initiative ordinance authorizing three medicinal cannabis delivery-only retailers as well as two testing laboratories in the City.  The final ordinance is attached as Exhibit 2.

http://records.cityofvista.com/WebLink/0/doc/1608823/Page1.aspx

The City Council must adopt a resolution (Exhibit 3) in order to place this ordinance on the November 6, 2018.

As noted in the Agenda Report for the City Marijuana Tax Initiative, it has been estimated that each medicinal delivery-only retailer would produce $84,000 in tax revenues annually. This amount has been estimated from data provided by the City of Long Beach. That city has nine medicinal-only retail outlets averaging $1.68 million in gross receipts per year. At a 5% tax rate, this would yield tax revenues of $84,000 per Vista retailer annually. Sacramento and San Diego reported substantially higher annual gross receipts per retailer, but each of those cities allows adult-use sales and are not directly comparable to Vista’s medicinal-only initiative.

FISCAL IMPACT:  The cost to place this ordinance on the ballot is already included in the agenda report entitled “November 6, 2018 General Municipal Election.

ACTION:

SUBJECT:  CITY MARIJUANA TAX INITIATIVERECOMMENDATION:  Adopt City Council Resolution 2018-   , ordering the submission to the qualified electors of the City an ordinance entitled “An Ordinance of the People of the City of Vista, California, Establishing a Tax on Commercial Marijuana Production and Sales and Amending Title 7 of the Vista Municipal Code to Add Chapter 7.10 Entitled `Cannabis Business Tax.”‘

PRIOR ACTION:  On May 29, 2018, conducted a workshop and directed staff to revise certain elements of the draft taxation and marijuana business ballot measures for consideration (No Vote).  Please refer to Exhibit 1 for a complete list of prior City Council actions.

DISCUSSION:  In response to the City Council’s direction on May 29, 2018, the City Attorney has prepared a final version of the initiative ordinance authorizing the taxation of cannabis businesses in the City of Vista.  The final ordinance is attached as Exhibit 2.The City Council must adopt a resolution (Exhibit 3) in order to place this ordinance on the November 6, 2018.  Section 1319(b) of the Elections Code requires that the statement of the measure to be voted on include the amount of money to be raised annually and the rate and duration of the tax to be levied. Unless one           of the two measures on the ballot is adopted by the voters, this tax initiative would raise no money.  However, since the City is proposing a measure that could result in three delivery-only retailers, for transparency the ballot statement assumes that three delivery-only retailers would be taxed.The amount to be raised has been estimated from data provided by the City of Long Beach. That city has nine medicinal-only retail outlets averaging $1.68 million in gross receipts per year. At a 5% tax rate, this would yield tax revenues of$84,000 per Vista retailer annually. Sacramento and San Diego reported substantially higher annual gross receipts per retailer, but each of those cities allows adult-use sales and are not directly comparable to Vista’s medicinal-only initiative.

FISCAL IMPACT:  The cost to place this ordinance on the ballot is already included in the agenda report entitled “November 6, 2018 General Municipal Election.

ACTION:

 

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  • Published: 4 months ago on June 11, 2018
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  • Last Modified: June 13, 2018 @ 9:21 am
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