No. Measure A imposes a new City tax on cannabis businesses, not on patients or consumers. Fresno residents will not pay any extra local sales tax when purchasing products, goods or services.
Measure A is a special tax because it creates a new Community Benefit Fund devoted to specific (not general) purposes. Special taxes have a higher threshold of voter approval than general taxes. Measure A requires a two-thirds “yes” vote by City voters to be approved.
No. Medicinal cannabis patients with a county-issued state ID card pay no sales tax at medicinal cannabis retailers. Measure A does not tax medicinal cannabis sales.
Yes. Medicinal cannabis businesses, including dispensaries, will pay a business license tax of up to 10% of their annual gross sales. The “up to” language means the City Council can adjust the tax rate as long as it doesn’t go over the voter-approved maximum.
No. Personal cultivation of up to six (6) cannabis plants by adults and qualified patients is deemed non-commercial under state law. Measure A does not tax personal use or cultivation.
No. Personal cultivation of up to six (6) cannabis plants by adults and qualified patients is allowed under Proposition 64, subject to local zoning laws. Measure A does not regulate state-legal personal use or cultivation. The City Council is likely to address these issues with a new land-use ordinance in the near future.
The proposed Cannabis Business Tax Ordinance defines “gross receipts” on pp. 6-7. The term has roughly the same meaning as “gross sales” or”gross income,” minus such things as cash refunds, tax payments and sales of non-cannabis products.
The Cannabis Business Tax Ordinance defines “canopy” on pg. 4. The ballot question uses the term “canopy square-foot.” For growers, Measure A is a “canopy tax” that’s based on the area occupied by growing plants. Measure A imposes a tax of up to $12 per square foot of plant canopy.
The Cannabis Business Tax Ordinance creates the Community Benefit Fund on pg. 1 and allocates 10% of cannabis tax revenues to its special purposes. Those specific purposes will be set by a future council resolution.
The Cannabis Business Tax Ordinance creates the Community Benefit Commission on pg. 2. The purpose of the nine-person commission is to make recommendations about how and where Community Benefit Fund proceeds will be spent. Each City Council member will appoint one person to the commission; the Mayor’s Office will appoint two.
No, not directly. Measure A applies only to the City of Fresno, and only City residents may vote on the ballot measure. Measure A will not create a cannabis tax in unincorporated Fresno County or in any city other than Fresno. Indirectly, Fresno County residents will benefit from having safe and convenient access to medicinal cannabis dispensaries, which are still banned in the county.
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