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Grover Beach council backs marijuana business ordinance

February 7, 2017

legalize-marijuana-california-environmentThe Grover Beach City Council voted unanimously Monday for a pair of ordinances that will establish a marijuana business district and a tax on commercial activity involving cannabis.

Grover Beach plans to create a marijuana district in a 70-acre industrial zone that is located between Farroll Road, Highland Way, South 4th Street and South 13th Street. The initial plan only allows for medical marijuana dispensaries to open. Recreational pot shops may open in the area when the state of California begins licensing them in 2018.

Marijuana business activities that are expected to be permitted in the district include pot grows, dispensaries, nurseries, manufacturing operations and testing laboratories. Businesses will have to obtain local and state licensing.

In conjunction with the statewide vote to legalize marijuana, Grover Beach voters backed a pot tax measure on last November’s ballot. The initiative imposes a maximum 5 percent tax on gross receipts for medical marijuana business activity and a maximum 10 percent tax on non-medical marijuana businesses.

Additionally, pot farms and nurseries will be taxed at a maximum of $25 per square foot of canopy on the first 5,000 square feet and $10 per square foot thereafter. An additional excise tax was passed as part of Proposition 64.

Monday’s council vote was on the initial readings of the ordinances. The ordinances are expected to return for final adoption on Feb. 21.


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Once the MMJ money starts flowing in hopefully Grover Beach can then start fixing their streets correctly and get rid of the perpetual potholes. (No pun intended)


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Great job Grover Beach City Council, you’ve effectively regulated yourself out of the market. A 1000 square foot grow is going to cost $25,000? I imagine growers are already gathering at the city limits waiting for a chance to do business in your city.


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Grover fees and taxes are in line with those of other municipalities allowing medical cannabis.


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I’m not in agreement with the legalization of marijuana although the people have voted for it and now I will accept the decision. What really bothers me is that these local governments are jumping up and down and trying to figure out how much they can tax and fee this new industry.

Personally I’m getting tired of seeing almost every event in this county associated with wine, beer or cider, probably because I can’t drink like I used to. How many drunk drivers do you think they may be providing us?

So my questions is why isn’t the wine, beer and cider industries being taxed the same way as government wants to tax marijuana.


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It may something to do with the fact that wine, beer and cider is legal in the eyes of the federal government.


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What you say is true, but… I get the feeling that a significant portion of the never-ending pushback on cannabis in SLO county has to do with the notion that everyone seems afraid to do anything to hurt the local wine industry and the tourism associated with this alcoholic beverage.


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That there is a protected industry for economic reasons should not be a surprise to you. We already know there are protected classes when it comes to LEO’s, government employees, politicians and such.


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They are. Do a little googling and you’ll see that.


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I was responding to rukidding. Wine, beer and liquor are taxed very much the same way as marijuana will be. In fact, they provide the model.


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How refreshing a sense of reason in our County. Thank you Grover Beach for your well thought plan to implement a legal commodity.


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