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County to ask voters for marijuana business tax to help homeless

by City News Service • July 12, 2016

pot taxLOS ANGELES – The Los Angeles County Board of Supervisors voted 3-2 on Tuesday to ask voters in November to approve a special marijuana business tax of up to 10 percent of gross receipts to fund the fight against homelessness.

“There’s an emergency,” said Supervisor Mark Ridley-Thomas, who has unsuccessfully pressed Gov. Jerry Brown to declare a statewide emergency to free up additional funding. “It is urgent that we address this issue.”

However, in the end, Ridley-Thomas voted against the marijuana tax, even after his push for a quarter-cent sales tax failed to garner the four votes it needed to pass. Supervisor Michael Antonovich cast the other dissenting vote.

The county’s chief executive officer has estimated that $450 million in annual funding will be needed to effectively combat homelessness in the region. A marijuana tax is projected to raise $78-130 million annually, leading Ridley-Thomas to call it the “least effective” choice.

The board also considered a three-cent parcel tax — which was taken off the table before a vote — a quarter-cent sales tax and a general tax on medical and recreational marijuana that would not have been dedicated to fighting homelessness.

More than 100 advocates for the homeless urged the board to move forward with at least one of the measures, including a homeless man who said he hadn’t showered in months.

Many activists pushed for the sales tax, saying it would be the most reliable and timely source of funds. That option was projected to generate $355 million annually.

Others chose not to dictate a particular path, while some suggested that the board put all measures on the ballot and let voters decide.

Pollsters hired by the county found roughly equivalent public support — ranging from 67-69 percent — for all the options.

However, poll numbers fell below two-thirds when measures were in the third rather than first position on a hypothetical ballot or when voters heard additional messaging about the issues. The marijuana tax will require two- thirds of voters to approve its passage.

Revenues from the marijuana tax would also depend on voters passing a separate November measure to legalize the use of recreational marijuana.

The tax would be on businesses that grow and sell medical and recreational marijuana. When paired with state and other taxes, it could mean that buyers pay up to 34 percent in taxes on purchases, assuming business owners pass costs through to buyers.

Some marijuana advocates warned that high taxes could create a continuing black market for the drug.

Based on experience in Colorado, Washington and Oregon, staffers said revenue would come in slowly and build over a period of about two years after legalization. No tax on recreational marijuana could take effect until at least 2018, according to county attorneys.

Supervisor Michael Antonovich objected to the idea of taxing a drug that he believes should be illegal.

“Drugs don’t build strong societies,” Antonovich said, adding that legalization “runs counter to our public health approach” as “marijuana is tied to dependence and addiction.”

Supervisor Hilda Solis said the issue “makes me feel a bit uncomfortable,” but believes that voters are likely to pass legalization and the board should begin to worry about “bringing in revenue that this county deserves.”

The county could chose to ban marijuana even if the state legalizes it — though it could not ban personal indoor use or cultivation or the use of public roads for transportation — but in that case would not receive any of the state taxes generated by the drug.

Supervisor Sheila Kuehl said the board shouldn’t worry about answering all the questions about how to regulate marijuana before moving forward with a ballot measure to tax cannabis.

“It’s time to do this now,” Kuehl said.

The county had previously considered a millionaire’s tax, a half-percent tax on personal income in excess of $1 million that was projected to raise $243 million per year to combat homelessness.

State legislators who would have had to grant the county the right to levy that tax failed to take the issue up before the summer recess, leaving the measure unable to meet deadlines for the November ballot.

Solis, who also voted in support of the sales tax, said she believed the business tax on marijuana would be effective.

“I believe we moved forward with our most viable ballot option for this November’s ballot,” Solis said.

–

Filed Under: Business, Politics

16 comments for "County to ask voters for marijuana business tax to help homeless"

  1. gregory hernandez says

    July 30, 2016 at 8:04 am

    http://image.oregonlive.com/home/olive-media/width620/img/marijuana/photo/2016/07/25/20801383-mmmain.jpg

    RETAIL, RECREATIONAL CANNABIS SELLS AT OVER $3000lb and thats here where its grown, in the AV.

    every Cannabis user knows for an absolute fact that Calif Cannabis is the finest weed grown in the country. Ore is paying ALL their bills w Cannabis tax money. Washington is paying ALL their bills w Cannabis tax money. Nevada is paying ALL their bills w Cannabis tax money, AZ, NM and CO? last year CO was able to give EVERY TAX PAYER in the state over $300 in their state tax refund.

    currently our country has 23 states where Cannabis is in some way legal. most are medicinal, but the “some” that are smart enough to get into recreational where commercial farming is pulling a huge amount of revenue that is making a huge impact on the social hardships that are now becoming things of the past.

    govt is acting as fast as it can to remove Cannabis from schedule 1 of the CSA to make Cannabis legal on the federal level. already congress has cut DEA funding to eliminate investigations of Cannabis in states where there is regulation (like the MMRSA here in Ca.), also taken from the feds is money for prosecution.
    when recreational becomes legal across the U.S. we will be able to ship AV Cannabis all over the country…..at over $5000lb.

    the Antelope Valley Cannabis Chamber Commerce (AVCCC) urges everyone, starting here in LLA, to get their Dr recommendations. the AVCCC has an agreement w the Holistic Care Group @ Division and Ave J in Lancaster where AVCCC members get their Dr reccs. for just 35 bucks

    the AVCCC has professional Medical Cannabis (MediCan) farmers to help educate you on the art of %100 organic Cannabis farming. the AVCCC provides industry advice on both MediCan and for profit recreational cannabis farming. THEN you do research for yourself so that law enforcement wont have to lie anymore.

    JOIN THE AVCCC whose dedication is LLA’s future and financial independence.
    G. Hernandez Em= Praetorian.Omega6@yahoo.com 818.454.6675

  2. John says

    July 13, 2016 at 4:58 pm

    Must be income involved for city politicians.

    More of the dumbing down of Americans.

    • Joe says

      July 13, 2016 at 5:04 pm

      Wait untill it becomes legal.Colorado takes 30 percent tax.still won’t be enough.ca is tax and spend.or spend,then tax.

      • Tim Scott says

        July 13, 2016 at 5:30 pm

        Then there’s the Republican controlled states like Kansas. Don’t tax, spend anyway, go bankrupt.

        Republicans always complain because Democrats put in writing how things are going to get paid for. Meanwhile they just spend and pretend that somehow the money will fall from heaven, then draft an ’emergency spending’ bill to cover it.

        • Joe says

          July 13, 2016 at 5:35 pm

          Nope.ca voted on a school fund.to build new schools.maintain old ones..nope straight into the pension fund.you keep trying tim,who pays no tax.so gullible.

          • Joe says

            July 13, 2016 at 5:39 pm

            Water penelties for overuse,straight into medical for illegals free medical.

          • Joe says

            July 13, 2016 at 5:48 pm

            Highest taxed state out of 50.but it will never be enough.the dems have promised trilions in pensions,now they have to keep raising taxes to pay for them.I’ll ask again.if the economy is so great,as we have been told,why do we have so many homeless.

          • Tim Scott says

            July 13, 2016 at 5:51 pm

            Ask your brother Shane, he’s drawing on those pensions. I’m guessing you are too.

          • Shane Falco says

            July 13, 2016 at 7:20 pm

            No pension for me yet. Even so, let’s say just with my county income alone I make equal too what 6 people welfare, section 8, WIC…all the free stuff they get and all their kids too…I’m paying things they don’t like property taxes, income taxes (at a higher rate too) and I also employ people.

            I employ, as of today, 16 people, providing them income, money to spend and ability to pay taxes. My wife also employs 7 people and they too are able to afford to pay taxes and also contribute to the economies in the cities where they live.

            So…if/when I draw a pension, I will have paid more than my share and even some of a townhomer’s share too.

          • Tim Scott says

            July 13, 2016 at 7:23 pm

            Tell it to Joe. He’s the one complaining.

          • Tim Scott says

            July 13, 2016 at 7:26 pm

            By the way, if you are trying to insult me with the “townhomer” thing…I sold like twenty years ago, so even if I measured my manhood with the square footage of my house like you do it wouldn’t be really effective.

          • Laughing says

            July 19, 2016 at 1:46 pm

            Joe, Google results say otherwise about CA being the highest taxed state in the Union.

          • Tim Scott says

            July 19, 2016 at 2:12 pm

            Joe has never met a fact he didn’t like. Never met one he liked either. Wouldn’t know one if it slapped him in the face, near as I can make out.

        • Tim Scott says

          July 13, 2016 at 5:48 pm

          I noticed something the other night when you were trying to insult me and I was making a laughing stock out of you Joe…

          You cite things that I have never actually said here.

          Not that I haven’t said them…on other forums.

          So, what’s the deal there Joe? Did you search the internet for me? Go to those forums and root through their archives?

          Dedication Joe.

          I’ve never had a fanboy before. Pretty funny.

  3. Newman says

    July 13, 2016 at 9:55 am

    ridiculous

    • Joe says

      July 13, 2016 at 4:09 pm

      Emergency!!!!!.wasnt this many homeless 7 1/2 years ago.i thought things were “better”.

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