First City in Sonoma County Passes Tax on Recreational Cannabis

As the legalization of recreational cannabis could be just around the corner for California, many cities scattered throughout the vast state are starting to impose additional taxes on cannabis-related businesses. Cloverdale became the first city within Sonoma County to pass a local tax on cannabis-related businesses late July. The measure will be formally placed on the ballot by the city council on August 9.

Currently, the sale of medical cannabis is currently prohibited in Cloverdale. If voters approve the new measure proposed by the city council, the taxes would go to funding different public aspects of the city from streets and parks to police and libraries. The tax is set at a maximum of 10 percent with a sliding scale that is dependent upon the type of cannabis business. It is believed by city officials that just one collective could bring in up to $150,000 each year, however there is fear that this possibility for large funds could lead to negative impacts.

During a city council meeting in late July, various supporters of the measure also warned the city council to only approve a small number of cannabis collectives. As reported by The Press Democrat, Councilman Gus Wolter said, “It’s incumbent upon us to make sure we don’t have a marijuana shop every other door.”

Many Cloverdale residents support passing the cannabis tax and feel that Cloverdale has a lot of people interesting in medical cannabis. One resident in particular, Steve Nurse, told The Press Democrat, “There is a huge market for marijuana in this region.”

According to a report by Cloverdale officials, if the city’s cannabis ordinance passes, they could be the 19th city in California to pass such a tax.