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Measure G: Commercial Cannabis Business Tax

Posted on May 7, 2018


Measure G

Quality of Life in San Rafael

The City of San Rafael is a great place to live, do business, raise a family and retire. Our city services, including public safety, parks and recreation, contribute to the quality of life that makes San Rafael such a desirable place to live.

On March 6, 2018, the City Council voted unanimously to place Measure G, the Commercial Cannabis Business Tax, on the June 5, 2018 ballot. If approved by 66.7% of San Rafael voters, Measure G would impose an ongoing tax on cannabis businesses of up to 8% on gross receipts for cannabis businesses operating in the city. Various elements of the cannabis industry will be taxed at different rates. For example, rates for testing labs will start at 1%, cannabis manufacturing at 3%, and medicinal delivery at 4%. Measure G would not authorize new cannabis storefronts or businesses in our community.

Regulatory Oversight to Ensure Cannabis Businesses are Safe and Legal

Measure G ensures San Rafael receives revenue from local cannabis business activity to fund oversight and enforcement without taking money away from existing programs. San Rafael currently allows cannabis laboratory testing, manufacturing, and medicinal delivery. The regulatory oversight funded by Measure G would ensure cannabis businesses operate safely and legally and do not negatively impact our quality of life. Measure G would provide locally‑controlled funding to:

  • Administer a cannabis oversight program
  • Enhance police and fire services
  • Repair potholes, city streets and sidewalks
  • Enhance community centers and facilities

Measure G Fiscal Accountability

  • Measure G would not increase taxes on homeowners or residents who do not operate commercial cannabis businesses
  • By law, all funds from Measure G would stay local and could not be taken by the State
  • An independent oversight committee would ensure funds are spent as promised
  • Mandatory annual audits are required

Sample Ballot Language

City of San Rafael
Commercial Cannabis Business Tax
MEASURE G

“To maintain/enhance City of San Rafael services, with funding that cannot be taken by Sacramento, including: enhancing police and fire services, repairing potholes/maintaining streets, enhancing community centers, and administering a cannabis oversight program; shall the City of San Rafael’s ordinance levying, until repealed, a tax of up to 8% on cannabis (marijuana) businesses’ gross receipts in the city, eventually ramping up to approximately $1,000,000 in new funding annually, requiring independent citizen oversight and financial audits be adopted?”

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