Grover Beach council to consider marijuana tax and regulations

July 5, 2016

medical marijuan rxMonths 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.



  1. just thinking says:

    By lopping together medicinal and recreational Marijuana you identify a mind set that bespeaks ignorance. I strongly suggest that the only way these new ordnances will survive a Court Challenge is to have 2 different initiatives to separate the Medical vs recreational.
    You don’t tax medicine.
    Your monetary windfall of taxation will still occur but with less guilt.

    (8) 10 Total Votes - 9 up - 1 down
  2. Vagabond says:

    It’s legal here in Oregon, The cities didn’t burn to the ground, crime has actually gone down,many businesses have started up filling vacant storefronts. lots of people now employed, tax revenues for counties and cities are going through the roof. I can’t think of one negative thing that has happened.

    (7) 17 Total Votes - 12 up - 5 down
    • r0y says:

      It also has not been taxed yet. The temporary plan begins this year, but the first monthly tax payments by retailers are not due until November 30, 2016. You may be correct, but it is so early on in the whole process, it would be foolish to claim such a sweeping victory at this point in time.

      However, Oregon did not appear to burn to the ground, so…

      (2) 6 Total Votes - 4 up - 2 down
    • abigchocoholic says:

      The cities didn’t burn to the ground, crime has actually gone down,many businesses have started up filling vacant storefronts. lots of people now employed, tax revenues for counties and cities are going through the roof. I can’t think of one negative thing that has happened.
      Legalizing marijuana is the biggest no brainer in the history of voting.

      It will:

      1. Lower crime:

      2. Increase tax revenue.

      3. Provide better medication with less side effects.

      4. Reduce prescription medication side effects and deaths.

      5. Reduce addiction and experimentation with the more harmful drugs meth, crack and heroin.

      6. Reduce public intoxication from alcohol and domestic disputes and driving while intoxicated and alcohol related accidents and deaths and aggressive behavior by drunks.

      It’s win win all the way around.

      (5) 7 Total Votes - 6 up - 1 down
      • kayaknut says:

        Don’t forget the whole new government department that is created to deal with it, that certainly is a win for someone but given public salaries, benefits and the billions currently in the underfunded public pension system the win certainly isn’t the taxpayers

        (0) 4 Total Votes - 2 up - 2 down
        • r0y says:

          Yes, for such a “sustainability-minded” bunch, government employees are anything but sustainable.

          (-1) 1 Total Votes - 0 up - 1 down
        • Vagabond says:

          If it’s payed for by taxes on the consumers what is your problem?

          (-1) 1 Total Votes - 0 up - 1 down
          • kayaknut says:

            The taxes would likely go into the General Fund, or otherwise known as the Bottom-less pit. I would be all for a government department who’s budget is based solely on the money from the tax on an item they were created to manage, but you are completely wrong if you think all costs from this new tax would pay for all it’s costs to manage, from salaries to benefits to lifetime pensions, with not a single penny coming from the general taxpayer

            (0) 0 Total Votes - 0 up - 0 down
    • kayaknut says:

      Does Oregon have a governor that put a revolving door on the jails and pays it’s residents more to not work with no incentive to go out at get a job?

      (1) 1 Total Votes - 1 up - 0 down
  3. Mr. Holly says:

    Although I don’t agree with legalizing marijuana which will probably become legal in November you have to ask what is going on here? Do we add an extra tax onto prescriptive medicines? Do we add an extra tax on to other recreational spirits like all of the local wineries, the breweries and the cider industry? If it does become legal it should be treated fairly like other similar substances.
    It will be interesting to watch what Grover Beach will do with this. It’s just another form of taxation that can be added to the list right behind the SLOCOG 1/2 tax increase and all of the proposed new taxes/fees that will probably be coming down from Sacramento like increases in vehicle registration fees and whatever they come with to collect money from us for doing a good job of buying fuel efficient cars and buying less gas.
    The bottom line is that you just don’t have a chance in California and that’s why they rank #50 for being he worst state for doing business.

    (9) 17 Total Votes - 13 up - 4 down

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