Grover Beach council to consider marijuana tax and regulations
July 5, 2016
Months after tightening its medical marijuana restrictions, the Grover Beach City Council will considering lifting cannabis-related prohibitions. The council will also consider placing a marijuana tax measure on the November ballot.
In January, amid a statewide rush to adopt medical marijuana regulations, the Grover Beach Council passed a cannabis cultivation ban. The city already had an ordinance in place that prohibited brick and mortar medical marijuana dispensaries.
Though the council approved a cultivation ban, it also adopted a city goal to later consider taxing and regulating medical marijuana. The city has since received four applications for code amendments that would allow a variety of medical marijuana businesses to operate in Grover Beach.
The code amendments requested by marijuana businesses include changes allowing brick and mortar dispensaries, delivery services, indoor cultivation, laboratory testing and marijuana manufacturing.
On Tuesday, the council will discus the requests and consider directing city staff to draft an ordinance that would regulate some or all of the types of marijuana businesses. The council will also consider directing staff to draft an ordinance that would place a marijuana tax measure on the ballot.
The tax initiative could apply to just medical marijuana or to both medical and recreational cannabis. California voters may legalize recreational use of marijuana in November. The Grover Beach Council could also wait for the results of the statewide initiative before making a decision on a local tax.
A city staff report says the marijuana businesses that are seeking to operate in Grover Beach support local taxation but are concerned about overtaxation.
Last week, the Santa Barbara City Council voted to place a 20 percent marijuana tax on the November ballot. If approved, the tax would apply to the sale of both medical and recreational marijuana.