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June 5, 2018 — California Primary Election
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Local

City of Pasadena
Measure DD - Majority Approval Required

To learn more about measures, follow the links for each tab in this section. For most screenreaders, you can hit Return or Enter to enter a tab and read the content within.

Election Results

Passed

19,699 votes yes (75.95%)

6,237 votes no (24.05%)

100% of precincts reporting (60/60).

Shall the City tax cannabis (marijuana) businesses at annual rates not to exceed $10.00 per canopy square foot for cultivation (adjustable for inflation), 6% of gross receipts for retail cannabis businesses, and 4% for all other cannabis businesses, to fund unrestricted general revenue purposes such as police, fire, roads and recreation; which is expected to generate an estimated $1.4 to $2.1 million annually and will be levied until repealed by the voters or City Council?

What is this proposal?

Measure Details — Official information about this measure

Impartial analysis / Proposal

Measure DD is submitted to the voters by the Pasadena City Council and would amend the Pasadena Municipal Code to establish a Cannabis Business Tax that would apply to all commercial cannabis (marijuana) businesses that may operate in Pasadena.

Background

On February 26, 2018, the City Council of the City of Pasadena (“Council”) approved submission of an ordinance for voter approval to amend the Pasadena Municipal Code (“PMC”) to establish a Cannabis Business Tax that would apply to all commercial cannabis businesses that may operate in Pasadena. At that time the Council also declared a fiscal emergency, thereby allowing this general tax to be presented at a special election in June of 2018.

The Measure

If passed, Measure DD would amend the PMC to impose a Cannabis Business Tax on all commercial cannabis businesses in Pasadena. The tax would apply even if the business was operating illegally; however, the Measure does not authorize or permit otherwise illegal business activity. Monies from the proposed Cannabis Business Tax would be deposited in the City’s General Fund to be used for general governmental purposes, such as supporting the regulation of commercial cannabis businesses while maintaining 911 services, police and fire protection, road repairs, neighborhood parks and recreation areas, and other community services. The amount of the tax would depend on the gross receipts of the business or the size of the business premises. The tax is imposed on commercial cannabis businesses, and is not a sales tax imposed on qualified patients, primary caregivers, or other persons who purchase or otherwise acquire cannabis for their personal use.

The Measure sets taxation rates that could be adjusted by the City Council periodically, so long as the rates do not exceed the maximum rates approved by voters. The Cannabis Business Tax would be payable quarterly, and failure to timely pay would result in certain increasing penalties.

As a result of the Council’s declaration of a fiscal emergency, this general tax may be presented to the voters at the special election in June of 2018, and requires a simple majority vote of 50% plus 1 to pass.

Measure DD is not dependent on the passage of a separate measure also on the June 2018 ballot that, if passed, would permit commercial cannabis businesses in Pasadena, subject to business, health and land use regulations (Measure CC). In other words, if this Measure is approved by voters, it would take effect, regardless of whether Measure CC passes. However, if this Measure is not approved by voters, the City’s current ban on commercial cannabis businesses would remain in place, regardless of whether voters approve Measure CC.

Measure DD requires approval of a majority of voters. A “yes” vote for Measure DD will establish a Pasadena Cannabis Business Tax. A “no” vote against Measure DD will not establish such a tax, and will also have the effect of maintaining the existing ban on commercial cannabis businesses in Pasadena.

Published Arguments — Arguments for and against the ballot measure

Arguments FOR

Measure DD will ensure that commercial cannabis businesses operating in the City of Pasadena will pay their fair share of taxes. These types of businesses must help fund general municipal services such as police and code enforcement services necessary for the proper administration and monitoring of their activity.

The imposition of a local excise tax on cannabis businesses initially ranging from 1% to 4% will produce an estimated $1 million to $2 million annually for the General Fund, and it is anticipated that this tax revenue will grow over time as revenues increase.

When added to State mandated taxes, the cumulative rate should generate enough revenue to cover necessary City regulatory costs without being so high as to encourage illegal sales.

Measure DD is fiscally responsible, timely, and prudent. Help Pasadena prosper by making sure that commercial cannabis businesses pay their fair share.

TERRY TORNEK
Mayor

ANDY WILSON
City Councilmember

TYRON HAMPTON
City Councilmember

MARGARET MCAUSTIN
City Councilmember

Arguments AGAINST

NO ARGUMENT AGAINST THIS MEASURE WAS SUBMITTED

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