Californians are expected to pass a ballot measure on Election Day legalizing recreational marijuana, and the prospect has cities and counties seeing dollar signs.
Proposition 64 would impose state taxes on the cultivation and sale of marijuana. But it also allows local jurisdictions to add taxes of their own, something many cities and counties said they plan to do.
Economists warn that burdensome taxes and fees on the nascent industry could backfire, fueling the black market and pushing marijuana businesses to decamp for towns where it’s cheaper to operate. For many city and county officials across California, however, the promise of new revenue to fill budget gaps and fund services is too alluring to pass up.
More than 60 local marijuana measures will appear on ballots across California in Tuesday’s election. In Monterey, a scenic county along the state’s rugged central coast, officials said new local marijuana taxes and fees, if approved, could bring in $30 million, nearly double the county’s $16 million budget deficit.
In Coalinga, a Fresno County community of about 13,000, officials hope to solve a $3 million budget crisis with marijuana taxes. Central California’s King City anticipates new revenues of $1 million to $2 million, or almost 30 percent of the city’s general fund.
Proposed marijuana taxes in Gonzales, population 8,400, are projected to hit $1.6 million, more than the city collects annually in sales and property taxes combined.
“There is no other business that would generate this type of revenue,” Gonzales City Manager Rene Mendez said. “It’s easy to see why this is something that communities want to pursue.”
Some California communities have gone further, announcing plans to reinvent themselves as hubs for the industry.
Desert Hot Springs in Southern California, a town that narrowly skirted bankruptcy after the financial crash, was one of a few cities to pass a marijuana tax in 2014. It is eager for marijuana revenue. The city passed an ordinance to allow for growing and processing businesses to legally operate.
Join GhanaStar.com to receive daily email alerts of breaking news in Ghana. GhanaStar.com is your source for all Ghana News. Get the latest Ghana news, breaking news, sports, politics, entertainment and more about Ghana, Africa and beyond.