HUNTINGTON BEACH, Calif.—The city council on July 19 voted 5–2 to finalize a cannabis tax ballot measure for the November General Election.
The council also unanimously postponed finalizing a second measure that would legalize the sale of marijuana in the city because councilors could not agree on the minimum distance between cannabis businesses and vulnerable places such as parks, schools, daycares, and youth centers.
The second measure will be discussed again at a future council meeting after providing more input on the issue.
The deadline for the city to submit ballot materials to the Orange County Registrar of Voters is Aug. 12.
Though Proposition 64 legalized retail cannabis in the state in 2016, many cities in Orange County ban it, including Huntington Beach.
Mayor Pro Tem Mike Posey and Councilman Erik Peterson cast the dissenting votes against a tax on cannabis sales. Peterson opposes lifting the ban on cannabis sales entirely, while Posey isn’t supportive on imposing more taxes on residents.
The cannabis tax ballot measure resembles a similar measure that received 64 percent voter approval in June, but failed to reach the two-thirds majority it needed to pass. The council revived it on July 5 with again a 5–2 vote.
- Tax up to 6 percent for cannabis retailers, or storefronts and deliveries.
- Tax up to 1 percent for non-retail businesses, or distribution and cultivation centers.
- Allow the council to lower the tax rate on medical cannabis sales, as opposed to recreational sales.
- Generate an expected $300,000 to $600,000 annually, which would go toward the city’s general fund, according to the city.
