Taxing your Prop 19 and Medical Gardens measue to be voted on.

[JackTheGrower]

I am reading that Rancho Cordova has a measure on the ballot for November. While this article is inaccurate on the old SB420 limits I assume the report on this measure is true.

I do not support taxing medical gardens but this measure does tax medical gardens.

Voters in Rancho Cordova will decide in November whether to tax residents who grow their own pot.

The city measure, put on the Nov. 2 ballot by the City Council this week, would impose taxes on all local residential cultivation if California voters approve Proposition 19 to legalize recreational use.

But the city's proposed Personal Cannabis Cultivation Tax also makes no distinction between medical and recreational cultivation. So the tax would kick in for anyone currently cultivating for personal medical use – whether Proposition 19 passes or not.

If passed by local voters, the taxation measure in the Sacramento County city would make at-home cultivation a much more expensive endeavor.

The Rancho Cordova measure would impose a $600 annual tax per square foot of indoor cultivation of 25 square feet of marijuana or less and a $900 per square foot tax if the indoor growing area is more than 25 square feet.

The city tax would cost a local indoor grower $6,000 a year on 10 square feet of pot plants and $15,000 for 25 square feet. Outdoor growers, who would be billed at a lower rate, would pay a $1,200 residential tax for 25 square feet of marijuana plants.

If Proposition 19 passes, it would allow California adults over 21 to cultivate in a 25-square-foot residential space. Medical growers often exceed those limits by cultivating with other pot patients.

Read more: http://www.modbee.com/2010/08/06/12...qwxq=2746481#Comments_Container#ixzz0vpeATHdY

More links

http://cbs13.com/local/rancho.cordova.marijuana.2.1803418.html
http://www.ranchocordovapost.com/2010/07/13/discuss-it-city-of-rancho-cordova-marijuana-tax/

 

[Batboy]

Very interesting find Jack. I am reading through the staff report and the resolution right now to see what this is all about and I urge many of you to do the same before you jump to conclusions or rely on someone else's interpretation. Here is a link, I think I can link to a .pdf? http://rds.yahoo.com/_ylt=A0geuu9FH...org/Modules/ShowDocument.aspx?documentid=5915

One interesting thing that I've seen already, with respect to commercial businesses, is that Rancho Cordova currently bans ALL dispenseries and won't zone for anything that is against federal law. This resolution would not legalize commercial businesses, but it would put into place the tax mechanism in anticipation of the legalization of selling operations within the city -- this is good news for the pro mj/mmj residents as it would seem to indicate a shift in prohibitionist attitudes. However, the possibility of imposing significant per square foot taxes on personal use growers does seem troubling though. Let us read. . ..

 

[JackTheGrower]

It would seem that misinformation is the basis of their logic.
Perhaps many all over California will face similar tactics in the War on Cannabis even if prop 19 passes.
What seems ironic is that these people are doing as much as they can to keep prohibition going but wanting to profit from it and at a high rate now. Meaning they want in on the Drug Business in the biggest way.

According to our sources and Rancho Cordova Police Department experts, indoor plants typically require 1 square foot and generally produce one pound per plant. Since there are four harvests per year, one plant, or one square foot, can produce approximately one pound of marijuana per year. The current average price per mid-range quality marijuana is about $5,000 per pound.

 

[JackTheGrower]

Very interesting find Jack. I am reading through the staff report and the resolution right now to see what this is all about and I urge many of you to do the same before you jump to conclusions or rely on someone else's interpretation. Here is a link, I think I can link to a .pdf? http://rds.yahoo.com/_ylt=A0geuu9FH...org/Modules/ShowDocument.aspx?documentid=5915

One interesting thing that I've seen already, with respect to commercial businesses, is that Rancho Cordova currently bans ALL dispenseries and won't zone for anything that is against federal law. This resolution would not legalize commercial businesses, but it would put into place the tax mechanism in anticipation of the legalization of selling operations within the city -- this is good news for the pro mj/mmj residents as it would seem to indicate a shift in prohibitionist attitudes. However, the possibility of imposing significant per square foot taxes on personal use growers does seem troubling though. Let us read. . ..

They are wanting to Tax Medical and Prop 19 if it passes.

So all Medical people will have a $600 ~ $900 a SQ FT per year Tax if this passes.
I would assume that include all areas including a clone shelf for example.

This is an interesting example of the next phase in the War on Cannabis I believe. This makes busting folks for grows by the police profitable .

 

[Anti]

I am reading that Rancho Cordova has a measure on the ballot for November. While this article is inaccurate on the old SB420 limits I assume the report on this measure is true.

Well... I suppose the PEOPLE of Rancho Cordova will have their say and if it is passed, it will certainly be a painful financial inconvenience for the growers in Rancho Cordova. $1200 a year to grow 25 sq ft in your backyard doesn't sound completely unreasonable to me. Certainly less than the cost of many prescription medications.

I can tell you a city I will NOT be moving to if this passes, however. It starts with a Rancho and ends with Cordova.

This will have no effect on the state at large. Passing Prop 19 does not force EVERYONE to pay this tax, only if this separate bill passes and only for growers in Rancho Cordova.

 

[Anti]

They are wanting to Tax Medical and Prop 19 if it passes.

So all Medical people will have a $600 ~ $900 a SQ FT per year Tax if this passes.
I would assume that include all areas including a clone shelf for example.

If I were you I would consider going VERTICAL or moving from Rancho Cordova.

This is an interesting example of the next phase in the War on Cannabis I believe.

It is definitely unsettling and worth noting. Thanks for bringing it to our attention.

 

[Anti]

Far from being a dangerous tactic of the Orwellian Thought Police, on first read, Rancho Cordova's resolutions seem to be standard cash grab policies.

I'll quote:

City staff supports Resolution No. 94-2010 which would place the tax on cannabis businesses on the ballot. While the City is currently allowed to prohibit commercial marijuana businesses, State law continues to allow additional opportunities for access to marijuana. If the City is forced to, or chooses to allow dispensaries and other cannabis businesses in the future, this tax would provide vital revenues to the City needed to provide public safety, code enforcement and other City services. Cannabis businesses are also an increasingly important source of anticipated revenues in many cities. The City of Rancho Cordova does not want to be in the possible position of being required to allow cannabis businesses in the future without a source of revenue to help administer the costs of regulating them.
City staff also supports Resolution No. 95-2010 which would place the tax on personal cannabis cultivation before the voters. This tax would generate revenues from activities that are generating substantial calls for police, code enforcement and building enforcement staff. Staff in these departments regularly observe negative impacts resulting from personal cannabis cultivation, particularly, cultivation in the City's residential neighborhoods. However, staff support for this measure is less strong that its support for the tax on cannabis businesses because of the practical and administrative difficulty that City staff may have in enforcing and implementing the tax on personal cultivation, and its lower potential to generate significant revenues for the City.

So in other words. First paragraph is them saying, "Hey, we don't let people sell it NOW, but if the state MAKES us let them, we want a regulation in place that lets us get our piece of the pie! Also, if we see that by January the city next to us is making a ton of loot, we want to be able to change our minds and allow the sale!

Just gettin' their grub on.

The second paragraph is them saying "We don't think we have a chance in hell of getting this, but just in case we can, we'll make it a law that you pay taxes on your home-grown stuff, even though we doubt we'll even TRY to enforce this because it'd cost more to enforce it than we're likely to earn from the tax."

Sounds safe enough.

And you could always move to a city that's more liberal minded if it still seems too harsh.

Oh yeah. And the tax on business is one Resolution (94-2010) and the tax on personal is a DIFFERENT resolution (95-2010).

So you could vote for one or the other or neither if you were a resident of Rancho Cordova and STILL approve prop 19.

They don't EXPECT to get 95-2010 through. They're just hoping.

 

[JackTheGrower]

Well... I suppose the PEOPLE of Rancho Cordova will have their say and if it is passed, it will certainly be a painful financial inconvenience for the growers in Rancho Cordova. $1200 a year to grow 25 sq ft in your backyard doesn't sound completely unreasonable to me. Certainly less than the cost of many prescription medications.

I can tell you a city I will NOT be moving to if this passes, however. It starts with a Rancho and ends with Cordova.

This will have no effect on the state at large. Passing Prop 19 does not force EVERYONE to pay this tax, only if this separate bill passes and only for growers in Rancho Cordova.

I find it horrible. If I have to pay $1200 a year in Federal + State Taxes I freak out.
I usually expect a refund.

You have an interesting point of view that I'm concerned about LOL! JK

I don't live there but my brother did once.

I'm wondering if this will become a standard tool for Local Governments in continuing the fight tho..

 

[Batboy]

Here is my analysis:

Rancho Cordova city counsel will be voting on two mj tax ordinance and one regulation ordinance. If they adopt the tax ordinances, they will go up as ballot measures for the residents to vote; if they adopt the regulation ordinance, it will become law. Let’s take a look at each resolution and ordinance in detail.

**Please note that I am not a resident of California

Resolution 94-2010 – Cannabis Business Tax Ordinance

Summary:
Rancho Cordova currently prohibits all mj businesses and dispensaries. This resolution would not legalize dispensaries, but it would instead put the structure in place for the city’s cash grab if they ultimately elected to (or were forced to) legalize mj businesses. This tax would only go into effect if Prop19 (or a similar law allowing mj businesses) was passed AND the city decided to permit the establishment of such mj businesses.

Med 215/420 impact:
There is no 215/420 impact here because the city currently outlaws all mj businesses. This could be considered an expansion of rights, at a cost $$, but the city would first have to take affirmative steps to legalize the business.

Discussion:
For-profit mj businesses would be taxed 12% for the first $1 million of gross receipts, and 15% for all gross receipts over $1 million. They justified the 12%/15% taxes by analogizing to the 12% hotel occupancy tax that the city currently charges (14% in other CA cities). Interestingly, they also justify their tax rates based on comparisons to other jurisdictions that have imposed or are considering taxing measures; however, their own analysis concluded that the “other” local jurisdictions were charging between 1.8% and 10% of gross proceeds. I guess the extra 2-5% is just the city’s way of welcoming these new business ventures.

Not-for-profit mj businesses would be taxed $100 per square foot of the building used for the operation of the business. Again, they based this rate on other jurisdictions that impose or are considering imposing taxes on non-profits. Amazingly, they found that other jurisdictions charge non-profits between $5 and $25 per square foot. Their justification for charging 4 times the highest comparison – “in order to charge a similar tax rate to both for profit and non-profit businesses.” Basically, they don’t care that you aren’t trying to make a profit, they want the money.

The rates stated above are the maximum rates allowable under this law. There is a provision allowing for a reduction in the tax rates if, for example, the price of mj decreases. One can only hope. . .

Conclusion:
To the extent anyone cares about the conclusions of a non-CA resident and pro Prop19 proponent (if only I could vote), I would vote FOR this ordinance. If you can accept the fact that the best/fastest way towards legally purchasing mj in Rancho Cordova (with or without a 215 rec) is to pay a chunk in tax, then this law would get you one step closer. On its own, the ordinance is useless, as mj businesses are illegal. With the ordinance in place though, one could see a time when the city might permit such businesses.

 

[Batboy]

PART 2

Resolution 95-2010 – Personal Cannabis Cultivation Tax Ordinance

Summary:
Med growers beware! Rancho Cordova is trying to tax all non-commercial grows, even personal grows for medical necessity. This ordinance would have an immediate impact and does not require Prop19 to pass.

Med 215/420 impact:
Even if Prop19 fails, if this ordinance is passed, “legal” med growers in the city will find themselves dealing with some very troubling regulations and taxes. Personal use growers MIGHT be okay with these new laws and consider them the price of legality, but current med growers should be appalled and vehemently oppose this ordinance. This would represent a serious change to medical growers in Rancho Cordova.

Discussion:
This law/tax would apply to anyone cultivating at a private residence. If Prop19 passes, it would apply to individuals who grow for medical need as well as those without medical need. If Prop19 does not pass, this would still apply only to patients and caregivers cultivating in accordance with CA law.

Indoor tax – For 25 square feet or less of Cultivated Area, $600 per year for each square foot of Cultivated Area. For more than 25 square feet of Cultivated Area, $900 for each square foot of Cultivated Area.

Cultivated Area for indoor is defined as the greater of either (a) the total area of a property that is densely or primarily occupied by mj cultivation, or (b) one square foot per juvenile or mature mj plant indoors on the property.

Outdoor tax –For 25 square feet or less of Cultivated Area, $600 per year for each 12.5 square feet of Cultivated Area. For more than 25 square feet of Cultivated Area, $900 for each 12.5 square feet of Cultivated Area.

Cultivated Area for outdoor is defined as the greater of either (a) the total area of a property that is densely or primarily occupied by mj cultivation, or (b) 12.5 square feet per juvenile or mature mj plant indoors on the property.

How did they come up with these numbers, you may ask. According to their “experts,” indoor plants require 1 square foot and produce [1/4 pound] per plant (*I believe there is a typo in the analysis, so I substituted 1/4 pound for 1 pound*). Since there are 4 harvests per year, they determined that 1 plant in 1 square foot will produce 1 pound per year. They also figure that the price of mid-range quality bud is $5,000 per pound. 12% of $5,000 is $600. They also determined that each fully mature outdoor plant requires between 3x3 and 4x4 (averages out to nearly 12.5 square feet) to produce 1 pound once a year. 12% of one pound is $600. Feel free to dispute these numbers as you see fit. I cannot tell you what the numbers mean for juvenile plants, but my reading is that they consider each juvenile plant (could mean EVERY clone) will be taxed at one square foot per clone, or $600 per clone!

The rates stated above are the maximum rates allowable under this law. There is a provision allowing for a reduction in the tax rates if, for example, the price of mj decreases. One can only hope. . .

****Here is an especially nasty part of this ordinance. The city wasn’t really sure how they were going to regulate and enforce this type of tax which is based on events taking place inside persons’ homes, so this is what they came up with: if you wish to legally grow non-commercial on your property, 215 OR NOT, YOU MUST REGISTER WITH THE CITY. Your registration will provide them with: the address, whether you are owner or tenant, a diagram depicting the location to be used for cultivation, including the dimensions, and a letter from the owner stating that they give the tenant permission to grow. Failure to register will result in unspecified penalties and fines. Here’s another part you’ll love, if you terminate your cultivation activities, and you notify the city of such termination, if the city requests, you must permit them to inspect the portion of the property previously used for cultivation. Taking this “registration” to its worst conclusion: the feds will have a nice printout of every single Rancho Cordova resident that is “legally” growing and violating federal law.

Conclusion:
I’m not one to think that the feds have the time, money or desire to bust every single CA grower out there, which is one of the reasons that I think Prop19 will be wonderful, but this is scary stuff!

The Business Tax Ordinance and the Personal Tax Ordinance will most likely be put on the ballot separately, so voters should have an opportunity to vote AGAINST the personal tax while voting for the business tax. The city counsel could consolidate the measures and put them on as one combined measure, in which case it has to be a big fat AGAINST.

Hopefully the voters in Rancho Cordova are not asleep at the wheel, as allowing this to pass would be a huge step back for mmj growers. While it is arguably a step forward for non-medical personal use growers that want to go legal (assuming Prop19 passes), a tax of $15,000 per year for a non-commercial, personal use endeavor, AND having to register with the city, is just too much to bear. This one cannot be allowed to become law.

Next I will look at the ordinance that is not going up for a citizen vote, and it is very troubling.

 

[JackTheGrower]

Oh it's flat nasty..

Without clear State laws for all we can expect a lot more places like this getting flat nasty.

 

[igrowone]

the next chess move in the big MJ game, so i went to educate my self a bit
so i found this copy of the California Municipal Law Handbook online
and it is possible for a municipality to levy a special tax for necessary police services
but a special tax requires a 2/3 vote by the voters, not a simple majority
and the other preemptive revenues are very sketchy, those may well not survive a court challenge

 

[Batboy]

Without further ado, here is a summary of the scariest thing I've seen yet. ATTENTION MMJ GROWERS OF RANCHO CORDOVA - IF THIS THING PASSES, GET THE HELL OUT. You have been warned.

Ordinance 17-2010

This ordinance does NOT require voter approval, all that must happen to put this into play is a city counsel vote.

Just like the ordinace relating to a tax on personal grows, this ordinance will apply whether or not PROP19 passes. If Prop19 fails, this will still apply to all patients and caregivers that grow in Rancho Cordova. Clearly this may fly in the face of People v. Kelly, and challenges will no doubt follow, but this is the law that they are looking to pass:

Outdoor grows:

- 25 square feet or less; no exceptions.
- all plants must be in a full perimeter fence to prevent access by minors. All plants must be set back from fences by 10 feet.
- from a public right of way (street, sidewalk, public land, etc.), there can be no evidence of mj cultivation.

Indoor grows (you're gonna love this):

- 25 square feet or less; *there are medical exceptions
- only on residential properties.
- only within fully enclosed and secure structures inaccessible to minors.
- no cultivation in any carpeted areas.
- lighting cannot exceed 1200 watts!
- no gas may be used. No CO2! No butane for BHO, etc.
- no evidence from public rights of way.
- no creating humidity or mold.
- the residence shall be occupied and is required to maintain a functioning kitchen and bathrooms and primary bedrooms must be for their intended purpose and cannot be used for cultivation.

*med growers that want to grow in excess of 25 square feet:
- must be indoors.
- documentation of medical need must be available.
- inspection of the cultivation area by a building inspector or code enforcement officer to confirm that no health or safety concerns are present.
- additional standards may be required to meet CA Building Code and Fire Code.

While the people do not have a direct vote, I sure hope Rancho Cordovans are seeing what's going on here and making their voices heard. Don't let this pass and if it does, don't let those city counsel members survive their next election. This is utter garbage and presents significant reduction of existing rights of mmj growers. No one can say if it will survive a challenge in the courts, but that is a long and tedious road; don't let it get that far.

 

[igrowone]

well, if there's even a hint this could succeed, count on this popping up in other cities
the degree of regulation(attempted) is rather impressive, i hope the voters there are prepared to spend plenty more as this thing moves through the court process

 

[venturablaze]

dude, you do realize California has 50 billion dollers in debt. state wide counties are trying drastic matters. cali is also cutting care for the disabled, fireing state employs, writing iou's. is a tax on growing in one county really that odd to you. hmmm fire school teachers or let you grow weed and tax it.

 

[igrowone]

dude, you do realize California has 50 billion dollers in debt. state wide counties are trying drastic matters. cali is also cutting care for the disabled, fireing state employs, writing iou's. is a tax on growing in one county really that odd to you. hmmm fire school teachers or let you grow weed and tax it.

yeah, it's a real train wreck, i can understand looking for more money
i'd kill for the chance to have taxed weed in ny(which means legal)
but they have to follow the law, just like the rest of us
but no council member will do time for outrageous tax attempts, so what the hell(from their point of view)

 

[JackTheGrower]

I wish Prop 19 protected us from what is surly to become a new kind of marijuana fight community to community..

 

[Geronimo]

Here I do not like Prop 19 at all. But if you want to tax marijuana let 100% of the tax money go to the schools. And that would be just for starters

 

[JackTheGrower]

Parks, Schools and Child medical care come to mind for me.

 

[venturablaze]

ya its sad to see, colleges right now are so impacted, and without funds its pretty near impossible to get in without transfer programs or straight a's. its going down hill fast.