55D - RESO COMMERCIAL CANNABIS LICENSE TAX

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Proposed Commercial Cannabis Business Taxation Ballot Measure for Public Consideration on the November 2018 Ballot July 3, 2018 Page 5 Distribution 6% $ 4.00 Manufacturing 6% $ 10.00 Testing Facility or Testing Laboratory 5% $ 1.50 As a part of the Fiscal Year 2018/2019 Proposed Budget, staff incorporated the revenue projections from the Operating Agreements and the proposed ballot measure. If the proposed ballot measure is approved by the voters, the Operating Agreements would be modified to eliminate the fee provision. Additionally, allocation of the commercial cannabis has been appropriated 1/3 to youth services reserve appropriations, 1/3 to enforcement reserve appropriations, and 1/3 to the general fund and administration. Staff Recommendation Staff recommends City Council approve adding the commercial cannabis business license tax measure for public consideration on the November 2018 ballot. This ballot measure, if approved by the voters, will ensure that the revenues generated by the sale and allowable use activities, will be collected and allocated appropriately. STRATEGIC PLAN ALIGNMENT Approval of this item supports the City's efforts to meet Goal #5 Community Health, Livability, Engagement & Sustainability, Objective #1 (Establish a comprehensive community engagement initiative to expand access to information and create opportunities for stakeholders to play an active role in discussing public policy and setting priorities). FISCAL IMPACT The County Registrar of Voters office has estimated that the additional cost of adding a ballot measure to the City's consolidated general municipal election would be approximately $18,000. Funds for these administrative costs are available in the Clerk of the Council, Contractual Services account no. 01107031 62300, FY 2018-2019. APPROVED AS TO FUNDS AND ACCOUNTS: Francisco Gutierrez Executive Director Finance and Management Services Agency 55D-5