Measure Y Will Further Tax Santa Ana’s Recreational Cannabis Industry

Measure Y will further tax cultivators, manufacturers, distributors, testers and sellers. / Nikki Nelsen/ el Don

Almost a year after marijuana was legalized in California, Santa Ana city council is backing a ballot measure that would increase taxes on certain segments of the cannabis industry.

Measure Y would implement a gross square footage tax between 25 cents and $35 on cultivators along with a gross receipts tax for recreational cannabis businesses of 10 percent that would initially start at 5 percent and scale up.

These new taxes would effect all cultivators, manufacturers, sellers, cannabis testers and distributors that are working within the city’s commercial cannabis sector.

If passed, the city says Measure Y would bring an estimated $8 to $14 million a year that the city would use to assist in public safety, servicing parks, benefiting the youth and providing senior services.

Measure Y would not additionally tax medical marijuana businesses because there already is a separate business licensing tax of about 15 percent in place.

This measure would also not affect cannabis consumers who purchase their cannabis from legal medical/recreational locations because consumers are currently required to pay a 10 to 15 percent excise tax.

The city of Santa Ana currently allows the personal cultivation of six mature plants and 12 immature plants. Measure Y would not further tax personal cultivators and the laws and regulations would remain the same for personal growing in Santa Ana.

If Measure Y is approved Nov. 6 and becomes law, this new tax will go into effect on Dec. 6.

COMMENTS