Laguna Woods Places Retail Cannabis Tax Measure on November Ballot

Catalyst Cannabis Company in Santa Ana, Calif., on Feb. 18, 2021. John Fredricks/The Epoch Times

LAGUNA WOODS, Calif.—Residents in the City of Laguna Woods can expect to see a measure to tax cannabis businesses on the November ballot, despite the city’s current ban on retail cannabis.

The Laguna Woods City Council May 18 voted 4–1 to approve an ordinance that places a cannabis retail tax measure on the ballot for the upcoming election—with Mayor Carol Moore, who is up for reelection this year, being the lone dissenter.

If the measure is passed by the city’s voters, it would not lift the city’s ban on retail cannabis but would place regulations on cannabis businesses if the city lifted the ban in the future.

Catalyst Cannabis Company cannabis samples in Santa Ana, Calif., on Feb. 18, 2021. John Fredricks/The Epoch Times

The measure proposes “maximum taxes” on cannabis businesses in the city—with retailers paying 4 to 10 percent on their total revenues, and non-retail businesses, such as indoor growers and distributors, paying between 1 and 10 percent.

The cannabis taxes would generate approximately $750,000 annually for the city, according to the ordinance (pdf). Under the measure, the council would also be able to increase tax rates over time based on increases in the surrounding area’s consumer price index.

It will cost the city $58,240 to add the measure to the November ballot, according to city officials.

Ahead of the vote, Councilwoman Cynthia Conners said she supported the measure because she preferred to have the tax measure set by the council in a way that was beneficial to the city “on the off chance that cannabis retail ban is lifted one day.”

Some residents oppose the measure, saying the city should not spend money to put the measure on the ballot because retail cannabis is still largely opposed by the city’s residents—averaging 76 years old, according to data analyzing organization World Population Review.

“There is no reason to spend the money to put [the measure] on the ballot, because there is no need or desire for us to have cannabis sales,” said one resident who called into the meeting. “We should set this aside ... until the attitude in the community changes.”

The ordinance was first introduced by Councilwoman and mayor pro-tem Shari Horne in September, and first read in the council April 20, where councilors voted the same.

This comes after Laguna Woods residents approved Measure V, which allows cannabis dispensaries, both medical and recreational, to operate commercially in the city. The measure passed by a 50.86 to 49.14 percent margin in 2020.

However, because Measure V was an advisory vote, its outcome had no binding effect on city lawmakers.

The city’s proposed tax model is similar to that of Santa Ana, which has a retail cannabis tax of up to 10 percent, according to the ordinance.

Huntington Beach, another city that prohibits cannabis retail, also moved to put a cannabis retail tax on the November ballot in March.

If the measure is passed by voters, it will take effect Jan. 1, 2023.

Mayor Carol Moore did not respond to a request for comment by press time.