CA: Milpitas City Council to again weigh cannabis sales tax ballot measure

Council voted to ban all cannabis businesses in late 2018 reports the East Bay Times

MILPITAS — Despite voting in late 2018 to ban marijuana businesses in the city, the Milpitas City Council will discuss Tuesday whether it should put a marijuana business sales tax measure on the November election ballot.

The issue of whether to sanction marijuana business in the city has been contentious.

Mayor Rich Tran, who supported the previous ban, suggested at an April 21 meeting that the council take up the conversation on the cannabis sales tax measure, saying he wants local voters to make the choice.

“I believe this proposed cannabis sales tax is one step that we can take from now until the first Tuesday in November to allow residents to exercise their freedom to choose,” he said.

Councilman Anthony Phan, who had proposed a cannabis business sales tax measure in the summer of 2018 that was later shot down by the council, said he supported discussing the idea again.

“Having a diverse revenue stream is always good for us, especially in the fiscal position that we are in and the fiscal position that we will inevitably be in,” he said.

However, it’s unclear if moving forward with a cannabis business sales tax ballot measure would get support from the council, given that the city currently bans all of those businesses.

“In order for a tax to be levied on cannabis establishments, the city will need to also allow the use of cannabis establishments, either through council action or through voter approval,” a city staff report said.

“If it is determined that voters should decide whether to allow cannabis establishments in the city and how to tax them, two separate measures will need to be placed on the ballot,” the report said.

Milpitas City Council to again weigh cannabis sales tax ballot measure

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