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Smart Voter
Los Angeles County, CA November 2, 2010 Election
Measure N
Medical Marijuana Cooperative Tax Measure
City of La Puente

Ordinance - Majority Approval Required

Pass: 4,141 / 68.32% Yes votes ...... 1,920 / 31.68% No votes

See Also: Index of all Measures

Results as of Nov 24 2:18pm, 100.00% of Precincts Reporting (16/16)
Information shown below: Official Information | Impartial Analysis | Arguments |

Shall an ordinance be adopted to require Medical Marijuana Cooperatives operating in La Puente to pay an annual business license tax of 10% per $1,000 of gross receipts, or $100 per square footage on premises, if such Medical Marijuana Cooperative is exempted under California Constitution from local taxes measured by gross receipts to provide for general municipal services, including but not limited to law enforcement?

Official Sources of Information

Impartial Analysis from RICK OLIVAREZ
City Attorney
If adopted, Measure N (Medical Marijuana Cooperative Tax) would amend Title V (Business Regulation and Licenses) of La Puente's Municipal Code to add Chapters 5.05 to establish a new business license tax for "Medical Marijuana Cooperatives."

The tax will apply to businesses that dispense marijuana for medicinal purposes in accordance with Compassionate Use Act and the Medical Marijuana Program (Health and Safety Code 11362.5 and 11362.7-11362.83). Medical Marijuana Cooperatives may not operate for profit or generate a profit. Generally, Medical Marijuana Cooperatives are organized as non-profits. Under Article XIII, Section 26 of the California Constitution, certain non-profit organizations are exempt from local taxes measured by gross receipts or income. Because of these exemptions, La Puente's proposed business license tax includes two taxing methods:

Method No. 1. Medical Marijuana Cooperatives that qualify for the exemptions would be taxed at the rate of $100 per square foot of occupied premises; and

Method No. 2. All other Medical Marijuana Cooperatives would be taxed at the rate of ten percent (10%) per $1,000 of gross receipts.

The proposed business license tax on Medical Marijuana Cooperatives is a general tax and the City can use the revenue for any legal municipal purpose.

The revenues derived from this tax will be placed into the City's general fund for the usual expenses and for providing essential City services, including, but not limited to, law enforcement, code enforcement, building inspection, plan checks, planning, and public works.

The California Constitution, Article XIII(C), Section 2(b) requires that the electorate approve a general tax by a majority vote before the City can establish the new tax rates for Medical Marijuana Cooperatives.

  Official Information

City of La Puente
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Arguments For Measure N

City of La Puente faces historic budgetary problems, which, if La Puente's government doesn't balance the budget, could lead to higher taxes and fees for all La Puente residents and businesses, and more cuts to vital services.

Meanwhile, there is $14 billion in marijuana transactions every year in California, but we see none of the revenue that would come from taxing it.

By taxing marijuana, it would generate approximately $2-3 millions in annual revenue, which could fund jobs, public safety, youth & senior programs, and more.

The City of La Puente has worked to create regulations for medical cannabis dispensaries. Regulations are used to prevent nuisance while protecting patients, and keeping customers away from the criminal markets. La Puente's tax system does not yet have a category for medical cannabis dispensaries.

A YES vote on this measure will ensure additional sales tax revenue to the city and help to fund essential public services, such as Public Safety. State law in California requires that any new business tax rate must be approved by the voters.

Community organizations, city leaders and the medical cannabis dispensaries themselves all support this measure. Join cities across the state from Long Beach to Sacramento in enacting similar measures to protect your treasury and critical services I respectfully ask for your yes vote.

Mayor David E. Argudo

Mayor City of La Puente

(No arguments against Measure N were submitted)

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