TAX IT

Taxing recreational cannabis retailers clears way for citywide sales

Chula Vistans want marijuana.

Voters on Tuesday night overwhelmingly passed Measure Q, setting in place a commercial cannabis ordinance that will allow for the licensing and operation of cannabis businesses within the city.

Measure Q passed with 25,144 votes or 63.46 percent and is said to tax dispensaries and delivery services 5 to 15 percent, which marijuana advocates say could be a financial boon for the city.

“Chula Vista will be able to start working on a lot of new projects and they will start funding things that have been underfunded at this point because of a lack of resources,” said Dallin Young, executive director of the Association of Cannabis Professionals. “The passing of the measure is a good thing for the city overall, it’s a good thing for the (medical marijuana) patients, it’s great for business and great for the industry. We’re really excited that the citizens of Chula Vista voted this way and it’s going to be beneficial for everybody.”

It is estimated that the tax will raise about $6 million per year in tax revenue, until voters change or repeal it, to fund general city services, including enforcement efforts against cannabis businesses that are operating illegally. The tax has no expiration date.
Measure Q’s approval repeals the city’s existing ban on cannabis businesses to operate in the city.

Before the approval of the measure, medicinal marijuana dispensaries were illegal in Chula Vista and the city would impose civil penalties up to $10,000 per day on dispensary owners. Additionally, the city’s municipal code now authorizes criminal prosecution of violations as misdemeanors.

The ordinance authorizes three retailer licenses per council district for a total of 12 around the city, with no more than two being storefront retailers. Although storefront dispensaries will be open to the public, they will be prohibited from delivery services. In regard to cultivation, the city will give up to 10 indoor cultivation licenses city-wide. Indoor cultivation sites are limited to 20,000 square feet.

The ordinance becomes effective 10 days after the election is certified.