This upcoming November the Bay Area is set to see a number of Cannabis related tax measures and propositions appear on the ballot. It is important that cannabis businesses across the Bay Area familiarize themselves with the specifics of these measures.
Oakland, San Francisco, Morgan Hill, Santa Clara, Half Moon Bay and Contra Costa County will have cannabis tax measures on the ballot this November. Most cities will be voting on an increase in taxes or an adjustment to the current tax rate. In Half Moon Bay residents will be voting on delivery services as there are currently no dispensaries in the city.
Our hometown of Oakland has a more unique cannabis tax measure on its ballot. While most of the measures and propositions allow counties and cities to set cannabis tax rates, Oakland’s measure would give the City Council the ability to lower the current cannabis tax rates. Oakland currently has one of the highest cannabis tax rates in California. Giving the Oakland City Council the ability to lower the local cannabis tax rate would allow for the setting of a tax rate that is sensible for incoming and existing cannabis businesses. Measure V also calls for cannabis manufactures to be able to deduct the costs of raw materials similar to other manufacturing companies in non-cannabis industries.
In addition to the ability to lower the local tax rates and provide manufacturers the ability to deduct raw materials, Measure V will also allow businesses to make local tax payments in quarterly installments rather than having a large lump sum payment due annually.
We encourage all cannabis businesses operating in Oakland to review and familiarize themselves with Measure V and encourage all to vote “YES” on Measure V in the upcoming election. This will help the cannabis industry continue to thrive in Oakland and will produce additional jobs and tax revenue for the city.
For the full text of Measure V you can visit the City of Oakland website.