Locked and Loaded South San Francisco approves cannabis tax and its first delivery business

South San Francisco voters opened up the door to cannabis delivery with a new set of policies allowing those types of businesses. On Nov. 6, South San Francisco voters approved Measure LL, with nearly 75 percent support.

Measure LL allows the city to tax cannabis businesses one to five percent of gross receipts. Delivery-only businesses can be taxed up to five percent of gross receipts while cultivation businesses will be taxed up to four percent, distribution companies will be taxed up to three percent and testing companies will be taxed up to 2.5 percent. Since Measure LL is an excise tax and not a sales tax, it will directly fall upon commercial businesses and not consumers.

With the implementation of Measure LL, it is expected to provide the city with $100,000 to $700,000 per year in tax revenue. Many other Bay Area cities voted to approve cannabis tax measures on election day as well, including Emeryville, Santa Clara, Half Moon Bay, Redwood City, Daly City, Union City, Morgan Hill and Mountain View. San Francisco and Oakland also voted to approve amendments to their existing cannabis tax regimes. Once they’ve seen the endless lucrative possibilities, the cannabis industry is hard to ignore.

It didn’t take long for the first business to test out South San Francisco’s new tax regime. On Thursday, Nov. 15 The South San Francisco Planning Commission approved a license application for South San Francisco residents Dalvin and Genevieve Martin.

“Our planning commission approved the first delivery-only business last Thursday,” South San Francisco Planning Manager Sailesh Mehra confirmed to CULTURE. “They approved it unanimously. The staff report conditions of approval and findings can all be found online on our website.” Mehra conducted the Joint Study Session of the Planning Commission and Design Review Board concerning the opening of The Loaded Bowl at the meeting.

The Martins will open up a delivery-only business called The Loaded Bowl at an industrial office at 500 S. Airport Blvd. The owners are aiming to “change the stigma” surrounding cannabis businesses in their area. The business lies within the Business Commercial Zoning District in accordance with Title 20 of the South San Francisco Municipal Code. The Loaded Bowl will be allowed to operate for five years, at which point the city will determine how successful the business has been in compliance with local laws.

“Our planning commission approved the delivery-only business last Thursday. They approved it unanimously.”

 

The Loaded Bowl was formerly located in Redwood City. While the business will not offer retail sales as a storefront business, two employees plus a team of drivers will deliver cannabis throughout the city. The business isn’t allowed to erect any signs with the business name. In accordance with the city’s strict zoning laws, the business had to ensure that all restrictions were observed. “No delivery of our product will ever take place anywhere near a school, day care center, youth center, public park, open space, public building, eating or drinking establishment,” The Loaded Bowl’s agreement with the city reads.

The Loaded Bowl will deliver pre-packaged items that are ordered via phone or online. All cars must have locked boxes, video and audio recording, emergency alert systems and GPS. The company must also fill out vehicle maintenance records, inventory logs and delivery tracking. South San Francisco provides a good midpoint between San Francisco and the South Bay areas. Cannabis will soon become available to residents living on the San Francisco peninsula who previously had to drive to other cities in the Bay Area to obtain cannabis.

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