Thousand Oaks, California, Measure P, Marijuana Business Tax (November 2018)

• Up to $10 per square foot for cultivation;
• Up to 6 percent of gross receipts for retail; and
• Up to 4 percent of gross receipts for other businesses.

Yes

To fund general municipal expenses such as police, roads, and libraries, shall the City tax cannabis (marijuana) businesses at annual rates not to exceed $10.00 per canopy square foot for cultivation (adjustable for inflation), 6% of gross receipts for retail cannabis businesses, and 4% for all other cannabis businesses; which is expected to generate an estimated $130,000 to $150,000 annually and will be levied until repealed by the voters or the City Council?^[2]

Measure P was placed on the ballot by the Thousand Oaks City Council. Measure P would establish a business tax on the commercial sale of medical cannabis or related cannabis operations permitted under a regulatory scheme set forth by the State of California. This tax is not a sales or use tax. It is a tax on the business operator.

Currently, the City Only permits the commercial operation of one retail medical cannabis dispensary and one cannabis testing laboratory. The City has banned all other commercial cannabis operations permitted under State law.

If approved, the City of Thousand Oaks would tax cannabis (marijuana) retail businesses at an annual rate not to exceed 6 percent of gross receipts and cannabis testing laboratories at an annual rate not to exceed 2.5 percent Of gross receipts. If, in the future, the City of Thousand Oaks were to permit cultivation within its jurisdiction, the annual tax rate for cultivation would not exceed $10.00 per canopy square foot (adjustable for inflation). If the City Council were to approve other types of cannabis- related licenses in the future, the maximum rate of tax would range from 3 to 4 percent depending on the type Of cannabis business. Personal cultivation of cannabis would not be taxed.

The tax would be remitted to the City quarterly. Each person owing cannabis business taxes for a calendar quafter would be required to file a statement of the tax owed with the City's Tax Administrator. Any person who fails to remit the requisite tax would be required to pay penalties and interest. The City's Tax Administrator would be authorized to collect the taxes.

The City Council would have the power to repeal or amend the provisions of the tax in any manner that does not result in an increase in the amount of the tax or broaden the scope of the tax. This power includes imposing the tax at a rate lower than the authorized maximum rate, and establishing exemptions or other reductions.

Measure P provides that any violation of the tax, or a violation of the rules, regulations, or procedures promulgated by the City's Tax Administrator, would be a misdemeanor. The tax would not authorize the conduct or continuance of any illegal or unpermitted business or activity.

Tax revenue for the single retail medical cannabis dispensary could generate up to $60,000 for every in gross sales the dispensary earned annually and up to $25,000 for every $1 in gross sales a testing laboratory earned annually.

The proposed tax ordinance would only go into effect if approved by a majority of voters (50 percent plus 1), and would add Chapter 2 to Title 3 of the City of Thousand Oaks Municipal Code. The tax would take effect January 1, 2019.^[2]