Pass: 18050 / 78.38% Yes votes ...... 4980 / 21.62% No votes

See Also: Index of all Measures

Impartial Analysis from City Attorney

Background. The City of Richmond imposes an annual business license tax on each person conducting a business, trade or profession in the City. For most businesses, the tax is based on the number of employees of the business. The proceeds of the business license tax are deposited in the City's General Fund and may be used for any City purpose.

In July 2010, the Richmond City Council began considering a proposed ordinance to allow the sale of marijuana for medical purposes at up to three locations within the City. If that ordinance is adopted and becomes effective, such sales would be subject to significant regulation by the City. Proposition 19 is a statewide measure on the November 2, 2010 ballot. If adopted, the measure would permit the use, possession, and sale of marijuana for personal, non-medical purposes throughout California. Under Proposition 19, local governments could regulate and tax commercial activities related to marijuana.

Under current City law, a marijuana business would pay a business license tax based on the number of persons employed by the business.

The Measure. Measure V would impose a specific business license tax on any business conducting commercial activity involving marijuana, including selling, cultivating, transporting, or storing marijuana. Such businesses would pay an annual tax in the amount of 5% of the "gross receipts" of the business. "Gross receipts" means the total amount received by a person for the sale of goods or the performance of any act or service in connection with a marijuana business. This business license tax would apply to nonprofit organizations conducting a marijuana business, and is a general tax that will fund general City services.

The City Council is authorized to amend the tax ordinance in any manner that does not increase the tax amounts due and the tax collector is authorized to make rules for the payment and administration of the tax. Any increase in the tax will require voter approval.

The above statement is an impartial analysis of the Marijuana Business License Tax Measure V. If you desire a copy of the full text of the measure, please call the City Clerk's Office at 510.620.6513 and a copy will be mailed at no cost to you. You may also access the full text of the measure on the city website at the following website address: http://www.ci.richmond.ca.us