DATE: July 6, 2016
TO: Council Budget and Finance Committee
FROM: City Manager and City Attorney
SUBJECT
Title
Consider Possible Cannabis Taxes
End
Body
BACKGROUND
During its June 14, 2016 work session, the City Council discussed possible policy and revenue considerations related to the statewide recreational cannabis measure proposed for the November 2016 ballot: Proposition 64. The Council referred the matter to the Budget and Finance Committee for additional discussion of potential City tax measures that might be added to the November 8, 2016 ballot (See Related File: WS 16-040). Of the four options presented in the previous staff report, the Council was inclined to place a revenue measure on the November 2016 ballot in an attempt to preserve local taxation options. The Council deferred any discussion or decision on land use regulations and/or restrictions on marijuana pending the outcome of the November election.
Not surprisingly, the recreational cannabis initiative measure has qualified for the November 8, 2016 statewide election, so local policy and tax questions are now even more time-sensitive. The time sensitivity for Hayward is driven by three factors. First, while the Proposition is explicit about State taxation (See Section 7, page 43 of the Proposition), it is less clear about options for local taxation, particularly those of cities, after passage of the Measure, so local policy and tax questions may now be time-sensitive: those local taxes in place prior to the passage of the Statewide initiative may be in a stronger position. Second, the Alameda County Registrar of Voters (ROV) must receive all required election materials from the City no later than August 5, in order to qualify for the November 8 ballot. And finally, the Council typically recesses after the last regular meeting in July (July 19) until mid-September.
DISCUSSION
As mentioned in the Background section, the preparation of a tax measure for th...
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