Although the sale of marijuana is still illegal in Huntington Beach, the city is poised to adopt a ballot measure that would set cannabis tax rates on sales in the city, as early primary election results show.
Ballot Measure A—which needed a two-thirds majority vote to pass—would not legalize cannabis sales but would place a 6 percent tax on commercial cannabis sales and a 1 percent tax on non-retail cannabis businesses, including indoor cultivation and distribution, if they ever become legal in the future.
As of Wednesday evening, results show 66.4 percent of Huntington Beach voters approved the tax, while 33.6 percent voted “no.”If passed, the tax is estimated to generate between $300,000 and $600,000 annually for the specific purposes of funding police, homeless services, and behavioral health services, according to the Huntington Beach City Council’s resolution.
The measure also gives the city the freedom to adjust tax rates based on economic conditions.
Most cities in Orange County—save Costa Mesa and Santa Ana—ban retail cannabis.
However, several cities, including Huntington Beach and Laguna Woods, have placed cannabis sales tax measures on ballots in recent years amid calls and petitions from pro-cannabis groups to get measures such as marijuana legalization, taxation, and regulation on ballots.
The Huntington Beach City Council approved the ballot measure back in March with Mayor Pro Tem Mike Posey and Councilman Erik Peterson voting against the measure.
Laguna Woods’ councilors also voted last month to place a cannabis sales tax measure on the November ballot, despite cannabis still being illegal in the city.
Huntington Beach City Councilors Dan Kalmick, Erik Peterson, Kim Carr, and Mike Posey, as well as City Clerk Robin Estanislau, were not immediately available for comment.
