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Pacifica Pot Tax Passes

Photo: Crystal Bae

Voters of the coastside city of Pacifica overwhelmingly approved a six to ten percent gross receipts tax on cannabis businesses in yesterday’s November 7 election. 79 percent of voters cast “yes” votes in favor of Measure G, which city staff estimated would generate $360,000 every year in revenue. The measure enjoyed the unanimous support of the Pacifica City Council.

According the Yelp.com, Pacifica is currently home to five medical cannabis dispensaries.

Voters of another San Francisco Bay Area city, Cotati in Sonoma County, approved a similar cannabis tax measure, also called Measure G, by exactly the same 79 percent “yes” margin. The Cotati tax will assess a $25 per square foot tax on cultivation facilities and an 8 percent tax on the gross receipts of Mercy Wellness, the city’s only medical cannabis dispensary. Cotati estimates $300,000 annually in revenues from the new tax.

“Over 40 Cities and Counties in California have enacted similar taxes for cannabis businesses to address the inherent strain on the local agencies’ budgets resulting from cannabis legalization. We have identified areas where additional resources are needed to support this new industry.” – Cotati Mayor Susan Harvey

In both Pacific and Cotati, the city council voted to place the cannabis tax ordinances on yesterday’s ballot during Summer of this year.