An historical piece of legislation...

Cannabis agriculture has already been accepted in the Napa Valley, where their county agriculture association has inducted their very first cannabis farmer. And Now, Vallejo has a chance to recognize, tax, and regulate lawful cannabis business...

Measure C: Medical Marijuana Business License Tax
[http://www.ci.vallejo.ca.us/GovSite/default.asp?serviceID1=1002&Frame=L1]
The Vallejo City Council placed Measure C on the November 8, 2011 ballot to provide voters the opportunity to vote on imposing business license taxes on marijuana businesses to enhance City services. Measure C, if adopted by a majority of voters, will enact an ordinance taxing marijuana businesses at a rate of up to 10% of their gross receipts plus a base tax of $500 (adjusted yearly for changes in the Consumer Price Index) for conducting business within the City. The marijuana business license tax will tax gross receipts from the planting, cultivation, harvesting, transporting, manufacturing, compounding, converting, processing, preparing, storing, packaging, and wholesale and retail sales of marijuana and ancillary products in the City, whether or not carried on for profit. The revenue from Measure C could be used to enhance funding for 9-1-1 emergency response, police patrols, firefighter and paramedic services, youth and senior programs, street and pothole repairs, graffiti removal, economic development, and general City services.
Additional information on the City’s financial condition and the text of Measure C can be found on the Frequently Asked Questions (FAQ) link [http://www.ci.vallejo.ca.us/GovSite/default.asp?serviceID1=1004&Frame=L1] and other links found on this page.
If you have questions regarding Measure C or if you would like to receive an informational presentation on Measure C please send an email to MeasureC@ci.vallejo.ca.us, email to measurec@ci.vallejo.ca.us, or call (707) 551-4418.

"Measure C: Medical Marijuana Business License Tax - Frequently Asked Questions"
[http://www.ci.vallejo.ca.us/GovSite/default.asp?serviceID1=1004&Frame=L1]
Q: What is Measure C?
A: Measure C, if adopted by Vallejo voters, will enact an ordinance imposing a business license tax on marijuana businesses at a rate of up to 10% of their gross receipts plus a base tax of $500 (adjusted yearly for changes in the Consumer Price Index) for conducting business within the City. The marijuana business license tax will tax gross receipts from the planting, cultivation, harvesting, transporting, manufacturing, compounding, converting, processing, preparing, storing, packaging, and wholesale and retail sales of marijuana and ancillary products in the City, whether or not carried on for profit. If adopted, Measure C revenues would create a local revenue source to help meet the service needs of the City.

Q: If adopted by a majority of voters, when would the tax take effect?
A: The base tax of $500 would take effect upon approval of the voters, but the tax on gross receipts will not take effect until the City Council, by ordinance, sets the rate of the tax, which cannot exceed 10%. The City Council may, at any time, set a lower tax rate on gross receipts for all marijuana businesses or establish differing tax rates for different categories of marijuana businesses, subject to the maximum rate of 10%. The City Council may also increase the tax rate on gross receipts from time to time, provided the rate set does not exceed 10%.

Q: Does Measure C legalize, authorize, regulate or otherwise permit medical or recreational marijuana businesses in Vallejo?
A: No. Measure C does not legalize, authorize, regulate or otherwise permit medical or recreational marijuana businesses in Vallejo. Measure C would create a local revenue source by allowing the City Council to impose a business license tax on marijuana businesses. Measure C does not set up a regulatory structure for marijuana businesses and they would still be required to comply with the Vallejo Municipal Code to lawfully operate within the City.

Q: Does Measure C legalize recreational use of marijuana in Vallejo?
A: This Measure does not legalize the recreational use of marijuana within in Vallejo.

Q: Will the Revenues collected from Measure C be subject to audit?
A: Under Measure C, the revenues from the marijuana business license tax would be subject to the annual audit performed by the City’s independent auditor, which is reported in the City’s Comprehensive Annual Financial Report.

Q: What City services could Measure C support or improve?
A: By law, as a “general tax”, the specific City services that Measure C would support cannot be designated before the Measure is adopted by the voters. Measure C revenues will be placed in the General Fund – to support services that will be designated by the City Council if Measure C is adopted. The City Council establishes budget priorities, including the use of any additional revenues from Measure C. Revenue from Measure C could be used to enhance funding for 9-1-1 emergency response, police patrols, firefighter and paramedic services, youth and senior programs, street and pothole repairs, graffiti removal, economic development, and general City services.

Q: What is Vallejo’s current fiscal condition?
A: Similar to many other California communities, the City’s General Fund budget has been hit with double digit reductions in sales tax and property tax revenues due to the recession. Sales tax and property tax revenues make up approximately half of the City’s budget, which pays for the day to day services provided to residents. In fiscal year 2007/08 General Fund revenue was $83.6 million. In the current fiscal year, General Fund revenue is projected to be $65.7 million. This is a reduction of almost $18 million in revenue that previously funded City and community services.

Q: How has Vallejo’s fiscal condition affected public services and community services in Vallejo?
A: The City of Vallejo has made service and staff cuts to balance the budget over the past several years. Total City staffing has been reduced by approximately 33% over the past 4 years – resulting in 167 fewer people providing services to Vallejo residents. 36 firefighter paramedic positions have been eliminated, 56 police officer positions have been cut, and another 75 positions throughout other City departments have been eliminated. In addition, City General Fund payments to the Florence Douglas Senior Center, Greater Vallejo Recreation District, Solano County Library and other community groups and services have been eliminated.

Q: How is the City planning to address its fiscal challenges?
A: The City has renegotiated labor agreements to reduce costs, reorganized to place a greater focus on economic development and pursued grant opportunities to augment local tax revenue. If adopted by Vallejo voters, Measure C would generate additional revenue through a tax on marijuana businesses at a rate of up to 10% of their gross receipts plus a base tax of $500 which will be reinvested directly into our community.

Q: How can I find out more information about Measure C?
A: The City has established a link on the main page of its website (www.ci.vallejo.ca.us) that provides information on Measure C. Additionally, speakers are available to attend organizations’ meetings, to provide educational information on the City’s financial condition and Measure C. If you have any questions, please call the City’s Measure C inquiry line, at (707) 551-4418. We would be happy to speak directly to any organization and answer any questions that may arise.