Californians are expected to pass a ballot measure on Election Day legalising recreational marijuana and the prospect has cities and counties seeing dollar signs.
Proposition 64 would impose state taxes on the cultivation and sale of marijuana but it also allows local jurisdictions to add taxes of their own something many cities said they had already planned to do.
The economists warn that burdensome taxes and fees on the nascent industry could backfire, fuelling the black market and pushing marijuana businesses to decamp for towns where its cheaper to operate. For many city and county officials across California, however, the promise of new revenue to fill budget gaps and fund services is too alluring to pass up.
More than 60 local marijuana measures will appear on ballots across California in Tuesday’s election. In Monterey, a scenic county along the states rugged central coast, officials said new local marijuana taxes and fees, if approved, could bring in $30 million, nearly double the countys $16 million budget deficit.
Coalinga a Fresno County community of about 13,000 hopes to solve a $3 million budget crisis with marijuana taxes. Central Californias King City anticipates new revenues of $1 million to $2 million or almost 30% of the citys general fund.
The proposed marijuana taxes in Gonzales population of 8,400 are projected to hit $1.6 million more than the city collects annually in sales and property taxes combined. There is no other business that would generate this type of revenue, Gonzales City Manager Rene Mendez said and added, Its easy to see why this is something that communities want to pursue.
Some California communities have gone further, announcing plans to reinvent themselves as hubs for the industry.Mayor Scott Matas said that it is already having an effect real estate prices on vacant and dilapidated industrial parcels have skyrocketed as investors stand poised to build manufacturing sites and open nurseries.
Forecasts for local marijuana taxes which will be collected in addition to state taxes are staggering. Desert Hot Springs current general fund is about $15 million but the citys leaders project the tax collections could reach $1 million next year and eventually climb to $50 million if all the available land gets fully built out. If the industry takes off, the revenue could be life-changing for this community, Matas said.
News Moderator: Katelyn Baker
Full Article: Californians To Grasp Opportunity Of Cashing In On Marijuana
Author: Staff
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