The city of Atwater will take a harder look at allowing large indoor marijuana cultivation, manufacturing and other cannabis-related industries as a means of generating additional tax revenue, according to members of the council.
Cultivation is banned in Atwater, as are dispensaries and manufacturing of cannabis. The council voted Tuesday to have the Community Development Resources Commission study allowing cannabis-based businesses, according to Councilman Paul Creighton, though dispensaries would still be banned.
Theres too many moving parts, he said about dispensaries on Friday.
Voters passed Proposition 64 in November, generally making recreational use of marijuana legal for adults 21 and over. Adults are allowed to carry 1 ounce of marijuana or 8 grams of concentrate under the new law, which also allows people to have up to six plants grown indoors. Marijuana use in public spaces still is illegal.
Individual cities can decide whether to allow dispensaries and manufacturing. The city of Merced, for example, voted last year to allow four dispensaries.
Atwater City Council and its commission met earlier this week to further study the industry. The city could ask voters whether theyd approve a tax on cannabis-related industries, according to Zach Drivon, executive director of Drivon Consulting.
He said voters in cities like Stockton have approved a tax on marijuana businesses of between 3.5 percent and 5 percent.
Atwater has struggled financiallyin recent years, verging on bankruptcy in 2012, and is dealing with a $2.8 million general fund debt, among other unfunded obligations, according to acting City Manager Scott McBride.
Atwater also owes about $4 million to an internal water fund from which it borrowed to pay for other city services.
Councilman Brian Raymond said the city could benefit from new tax revenue. Were a city on the brink of financial emergency again, he said. Desperate times call for desperate measures.
He noted that Proposition 64 passed narrowly in Merced County, where 51 percent of voters cast yes ballots in support of legalizing recreational marijuana.
Obviously, public input is going to be important, he said.
News Moderator: Katelyn Baker
Full Article: Atwater Taking Second Look At Cannabis Businesses In Search For More Tax Dollars
Author: Thaddeus Miller
Contact: (209) 722-1511
Photo Credit: Thaddeus Miller
Website: Merced Sun-Star
