The Sacramento County Board of Supervisors, at its July 26 meeting, adopted a resolution calling for an election to establish a tax on cannabis and hemp business activities in the unincorporated area of the County. The Cannabis Tax Measure will be on the November 8, 2022 ballot.
Should the voters approve the tax measure, County staff will return to the Board with a comprehensive cannabis regulatory program.
California voters approved Proposition 64, the Adult Use of Marijuana Act (AUMA) in 2016. The AUMA legalized specified personal use and cultivation of marijuana for adults 21 years or older and included provisions on regulation, licensing and taxation of legalized use.
The new Chapter 3.50 Resolution to Title 3 of the Sacramento County Code will establish a Special Tax on Cannabis and Hemp business activities within the unincorporated area of the County.
The ballot language will read as follows:
“Shall the measure to fund enhanced County homeless services, including those benefitting the American River Parkway, by establishing a special tax on the gross receipts from cannabis and hemp businesses in unincorporated Sacramento County, not exceeding 6% for retail, 4% for manufacturing, 3% for distribution, 2% for testing and, 3% for cultivation or $10 per canopy square foot inflation adjustable, generating an estimated $5,100,000 to $7,700,000 annually, and levied until repealed by voters, be adopted?”
The measure will require 66 2/3% of voters to vote “yes” on the measure to pass.
If the measure passes, all revenues received from the taxes imposed by Chapter 3.50 shall be deposited in a special fund to be expended for services addressing homelessness, including on the American River Parkway.
“With the affirmative Board vote, we’re finally taking initial steps to secure a dedicated revenue stream to compassionately assist our unsheltered constituents, address neighborhood impacts, and restore and protect the American River Parkway” said Supervisor Phil Serna, who proposed the measure. He continued by saying, “This November, Sacramento County voters will have an opportunity to tax cannabis business activities to fund what we all know too well; that more can and should be done to address homelessness in our community.”