Voters in Grover beach will decide if they want their city to tax commercial marijuana operations when the go to the polls in November.
The Grover Beach City Council voted unanimously to place a proposed measure on the ballot that would tax medical and non-medical marijuana, potentially netting the city millions of dollars in the future.
If voters approve the measure, commercial medical marijuana businesses would be taxed at 5 percent of their gross sales receipts. Recreational marijuana, which could become a reality thanks to a statewide ballot initiative, would be taxed at 10 percent of gross receipts. The measure would also tax commercial grow operations at $25 perfoot for the first 5,000 square feet, with the remainder at $10 per square foot. The tax would be due regardless of whether the grower fully uses the maximum canopy space, city staff said. The tax would be in addition to a 15 percent excise tax proposed as part of the statewide recreational medical marijuana initiative.
If passed, the tax could bring in between $1 million and $2 million in revenue annually to Grover Beach. However, City Manager Matthew Bronson said that estimate includes potential revenue from both medical and non-medical marijuana.
“This is an estimate based on activities that don’t yet exist within the city of Grover Beach,” Bronson said. “So this is staff’s best estimate based on the expected level of activity.”