Adelanto to send proposed medical marijuana tax to voters

November ballot measure key for city's industry revenue mechanism

source: Victor Valley Daily Press

ADELANTO — The City Council agreed Wednesday night to put a proposed medical marijuana tax in the hands of voters, an easy decision for city leaders that could ultimately have long-lasting reverberations for Adelanto's economic future.

The up-to 5 percent excise tax on all medical marijuana activity within city limits will be decided by voters in November; it's a ballot measure that, if passed, will essentially escort the city's marijuana revenue mechanism into reality.

"This is about the residents of Adelanto and trying to make sure we set up ... a payment structure so the residents of Adelanto get something out it," Mayor Pro Tem Jermaine Wright said.

The November vote will occur a year after the city first approved its cultivation ordinance, which has since been revamped to factor new state laws and introduce additional activities including manufacturing, business-to-business distribution and transportation and testing.

With expectation of significant revenue from the industry through taxation, the ballot measure's passing is "critical to the survival" of Adelanto, City Attorney Curtis Wright said.

But the Council also opted late Wednesday not to enact a moratorium on new medical marijuana permits through December, when San Bernardino County's Election Office is expected to have certified the ballot measure's results. A proposed moratorium was one possibility, Curtis Wright said, to rid any potential incentive proprietors may have to campaign against the tax.

"The intent here is to make sure our interests are aligned going into the election," he said.

By a 4-1 vote, with Councilman Ed Camargo dissenting — he voted for the tax, however — the Council decided to forego the freeze period, meaning proprietors can continue to be issued new permits immediately.

Several marijuana industry officials, concerned about the prospect of a moratorium, promised the Council that they were amenable to the up-to 5-percent tax and pointed to the covenant signed by a majority of proprietors during the permitting process as an indication they wouldn't oppose the tax.

Jermaine Wright said the agreement allowed the city to hold signers liable under the penalty of perjury.

The city has suggested it will actively launch a pro-tax campaign aimed at voters and plans to hold town halls leading up to the election to communicate a simple message: The proposed tax isn't being levied against residents.

On Wednesday, the Council also decided to send a second ballot measure to voters in November, one that would enact an up-to .05-percent gross revenue tax on businesses licensed or operating within city limits.

Currently, the city charges a flat fee for business licenses regardless of the size of the business. The proposed tax would merely make payments proportional to business size, city officials said.

Shea Johnson may be reached at 760-955-5368 or SJohnson@VVDailyPress.com. Follow him on Twitter at @DP_Shea.