San Diego County voters to consider cannabis tax on November ballot

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San Diego County voters to consider cannabis tax on November ballot
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Supervisors consider how to tax marijuana businesses, as part of cannabis expansion plan

San Diego County voters will be asked to authorize a tax system for marijuana businesses in the unincorporated areas on the November ballot, after the Board of Supervisors this week approved a marijuana tax ordinance.

The board considered how to set tax rates on marijuana businesses that would cover the cost of developing and administering a cannabis program, including permits, enforcement and other operations, and also provide general tax revenue to the county. Board Chair Nathan Fletcher said the county should pursue a general tax, adding that the board could decide later how to use that money within the county budget.

“It would be disastrous for county government to start imposing additional taxes on other jurisdictions that already have their own cannabis systems in place, and there would be no compelling argument for double taxing them from a local government standpoint,” he said. Speakers expressed varying responses to the proposal, with some saying a 30 percent total tax rate would be too high for businesses to remain competitive, while others urged the board to maximize marijuana taxation and use the funds for prevention and enforcement.

Cannabis justice advocate Anthony Avalos said taxes should be reduced or waived for new cannabis businesses.

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