ALL OF SACRAMENTO COUNTY—Would create a special tax on cannabis businesses in unincorporated areas that the county would spend on homeless services. Measure B requires at least ⅔ of voters approving to pass.
Fiscal Impact: Would generate an estimated $5.1 million to $7.7 million annually.
Next Sacramento County Measure: Measure D
Pro:
Proponents of Measure B argue that it would generate up to $7.7 million a year for a safer and more beautiful American River Parkway, and for new efforts to address homelessness -- all at no cost to taxpayers. They argue Measure B would assess revenue from carefully controlled, future cannabis-related businesses throughout unincorporated Sacramento County and the funds raised will provide important new resources to help get people back on their feet and off the streets.
A YES vote on this measure means: A special tax on cannabis businesses would be created in unincorporated areas that the county would spend on homeless services.
Con:
No official argument against Measure B was submitted.
A NO vote on this measure means: A special tax on cannabis businesses would not be created in unincorporated areas.
Measure B, placed on the ballot by the County of Sacramento Board of Supervisors, asks the voters to adopt a Cannabis Business Tax Ordinance that would impose a special tax on all cannabis and industrial hemp businesses operating within the unincorporated County, beginning ten (10) days after the vote is declared by the County of Sacramento Board of Supervisors. The proceeds of the tax imposed shall be placed in a special fund and shall be used only for County services addressing homelessness, including on the American River Parkway. The Ordinance authorizes the following maximum tax rates:
- For commercial cannabis cultivation, including cultivation of industrial hemp:
- Ten dollars ($10.00) per square foot of canopy space in a facility that uses exclusively artificial lighting.
- Seven dollars ($7.00) per square foot of canopy space in a facility that uses a combination of natural and supplemental artificial lighting.
- Four dollars ($4.00) per square foot of canopy space in a facility that uses no artificial lighting.
- Two dollars ($2.00) per square foot of canopy space for any nursery.
- For operation of a testing laboratory for cannabis, cannabis products, hemp and/or hemp products, a maximum tax rate not to exceed two percent (2%) of gross receipts.
- For retail sales of cannabis, cannabis products, hemp and/or hemp products, a maximum tax rate not to exceed six percent (6%) of gross receipts.
- For distribution of cannabis, cannabis products, hemp and/or hemp products, a maximum tax rate not to exceed three percent (3%) of gross receipts.
- For manufacturing or processing of cannabis, cannabis products, hemp and/or hemp products, or any other type of cannabis business, a maximum tax rate not to exceed four percent (4%) of gross receipts.
On January 1, 2024 and each January 1 thereafter, the maximum annual tax rates of commercial cannabis and/or commercial industrial hemp cultivation will increase by the percentage increase in the Consumer Price Index for consumers in the San Francisco-Oakland-Hayward region published by the United States Bureau of Labor Statistics. The Ordinance allows the Board of Supervisors to set the tax rate for each type of cannabis business in an amount equal to or lesser than the maximum rate.
It is estimated by the County’s Finance Director that this tax would generate $5,100,000 to $7,700,000 per year for the County.