Cannabis tax measures vary widely in ambition

Voters in Imperial and Calexico are being asked on Nov. 6 to approve measures that would levy additional taxes against marijuana-related businesses in their respective cities.

In Imperial, the electorate will consider Measure I, and in Calexico, it will be Measure K.

Measure I asks voters to tax cannabis businesses at annual rates not to exceed $10 per square foot for cultivation, 6 percent of gross sales on retail cannabis businesses, and 4 percent for “all other cannabis businesses.”

The measure, if approved, according to a city public information officer, would generate an estimated $40,000 to $60,000 a year in additional revenue to the city’s general fund for expenses related to police, fire, roads and recreation.

As not to greatly impact city resources, Imperial is allowing only one permitted medical cannabis facility in the city. The revenues from Measure I would offset any fiscal impacts the new development would have.

“Having this extra tax on cannabis sales would provide a revenue stream that would bear the brunt of those additional costs while allowing the city to pick up additional general funds with which to provide extra service and benefit for the citizens of Imperial that would help pay for things like parks, improvements to infrastructure, improved activities for families and support other small businesses,” Imperial City Councilman Darrell Pechtl said.

Meanwhile, Measure K in Calexico aims to put a much steeper price tag on its prospective marijuana-related businesses, asking voters to approve a tax of up to $25 per square foot of floor space, and up to 15 percent of all gross sales.

The tax is estimated to generate about $700,000 a year in additional revenue to the city’s general fund.

Calexico Mayor Lewis Pacheco said the city would like to “utilize those revenues for parks, public works, police and fire and our services we’re trying to beef up a little.

“It is an important measure to be passed,” he added. “It’s just another source of revenue for us.”

Calexico is still considering whether it will allow retail cannabis businesses in the city such as dispensaries and delivery operations. What it has on the books now allows for the licensing of up to 10 applicants in each of the following categories: cultivation, manufacturing, distribution and the testing of cannabis products. The city has a development agreement with one business allowing it to cultivate and manufacture cannabis products.

Both tax measures, because they are for their cities’ general fund, need only 50 percent plus one vote to pass.