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Politics

Voters poised to pass Measure A, the cannabis business tax

A pile of dried cannabis buds is seen here, Aug. 31, 2017.
Andrew Bowen
/
KPBS
A pile of dried cannabis buds is seen here, Aug. 31, 2017.

Live Results

Measure A, the cannabis business tax, appeared to pass Wednesday morning. As of 9 a.m., 57.4% of voters voted to approve the measure.

In June, the San Diego County Board of Supervisors approved an ordinance to tax cannabis businesses, subject to voter approval. The actions placed Measure A on the November ballot.

If approved, it would allow the board of supervisors to set the initial tax rate on cannabis for recreational and medicinal operations in the unincorporated county. That includes the communities of Ramona, Valley Center, Lakeside, Alpine, Otay and Spring Valley — among others. Voters were asked if gross receipts should be taxed at a maximum of 6% for retail, 3% for distribution, 2% for testing, 3% for cultivation or $10 per canopy square foot and 4% for other businesses. The tax would not apply to cannabis businesses operating outside of the unincorporated county.

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Measure A requires a simple majority to pass. All county voters had it on their ballots. San Diego County officials estimate it could bring in revenues of $2.9 million to $5.6 million each year. The money would not be restricted and could be used for any general government purpose, including parks, fire safety or road repairs.

Supporters argued the measure would keep tax revenues local and is crucial to shutting down illegal cannabis operations. Opponents argued the cannabis business tax was unfair because it only applied to businesses in unincorporated areas, yet, all county voters had it on their ballots. They also questioned whether revenues would go to the areas paying the tax.

Supporters included San Diego County Supervisors Nathan Fletcher, Nora Vargas and Terra Lawson-Remer, along with the San Diego County Democratic Party. Among opponents were the San Diego County Taxpayers Association CEO Haney Hong, former La Mesa City Councilmember Barry Jantz and the San Diego County Republican Party.

Get general information about the election, news coverage, an interactive ballot guide and results on election day.