Even now they don’t look too happy about it!!
VISALIA – The city has furthered the discussion on the framework for a cannabis sales tax in Visalia ahead of possible state requirements.
On May 18, the Visalia City Council heard a presentation by HDL Company regarding the process of enacting a cannabis tax. This is in anticipation of the potential for a state mandate requiring cities allow for medicinal cannabis sales. Although efforts to pass a mandate at the state level have fallen short, the city wants to have an ordinance in place in case legislation does pass in the future.
Currently, marijuana dispensaries and delivery services are banned in Visalia. Visalians who want to purchase cannabis must use a delivery service from nearby communities like Tulare and Woodlake, as delivery services are permitted to make deliveries in the city.
A state law that went into effect on Jan. 1 2024, Senate Bill 1186, prevents cities from banning deliveries, but does not require that cities allow physical sites. So the passage of a tax measure does not mean Visalia would change its stance on barring cannabis businesses; however, it will allow the city to collect money from delivery businesses serving the Visalia community.
Among the issues the council is debating is an appropriate tax rate. Mark Lovelace from HDL Company estimated that tax revenue could generate anywhere between $500,000 and $1 million annually, and recommended a tax rate between 5% and 10%. The council acknowledged establishing a high tax rate would allow for reductions at a future date, while raising the tax rate would be a more difficult proposition. Thus, the city is currently debating a 6% tax on sales that would add to existing sales tax revenue already.
Visalia initially banned marijuana businesses in 1997 after the passage of The Compassionate Use Act, which allowed for medicinal sales of marijuana in California in 1996. The ban was further upheld with the passage of a ban on recreational sales in 2017 after the state legalized recreational use in Proposition 64.
