City Council discusses putting pot tax on Nov. ballot

Porterville’s city council held a special meeting Wednesday night to discuss the possibility of putting a cannabis tax authorization on the ballot in November.

After deliberation in closed session about an anticipated litigation, the council returned to open session with nothing to report.

After opening the meeting for public comments, Ellen Nickels relayed her frustrations to the council about the roads and bad air quality.

Greg Shelton expressed his gratitude to the council for discussing the matter of cannabis taxation on such a short deadline. Lawana Tate suggested that the council take baby steps in their approach towards taxing cannabis.

“Even though this is last minute, if you were to hold another meeting next week, get this on the agenda,” said Tate. “Give people an opportunity to give you their opinion about it.”

City Manager John Lollis began by reminding that the meeting was called for guidance from the council on possible taxation of cannabis, and that this subject hadn’t been discussed in a little over a year.

When the matter was brought up in the past it was recommended that, since regulations were being put in place, it was best to hold off on pursuing any taxation of cannabis for adult use.

Lollis clarified that there are multiple permits that are currently allowed by the state that the city could look at.

“Potentially there is upwards of 20 permits and different kinds of activities that are licensed by the state that the city could pursue,” Lollis stated.

Vice Mayor Brian Ward questioned if the city would collect sales taxes and generate revenue. City Attorney Julia Lew assured Ward that taxes could be collected, just as they are on other products and businesses.

Ward expressed that the city may be currently missing an opportunity to generate revenue.

Ward and council members Flores, Hamilton and Reyes all agreed that trying to get this matter on the ballot for November would be difficult due to the fact that the registration period ends August 10. Flores was also concerned about not having enough information about the matter and suggested that this subject be looked into for the 2020 election period.

Ward ended the discussion by suggesting a two-year experimentation period, where the city could generate revenue

in terms of activity that doesn't include sales taxes such as testing facilities.

“If other communities are starting out with heavy taxes, we'd be the area that didn't have heavy taxes. Therefore it would make us more likely to attract people,” said Ward. “We'd still benefit because of the jobs and the money that is being brought in to here from outside the area. Then in 2020 the council can decide whether or not they'd want to put a taxation measure on the ballot.”

The next city council meeting is scheduled for 6:30 p.m. on Tuesday, August 7, at the City Hall, 291 North Main Street.