A former Metropolis Council candidate has proposed a brand new hashish taxation measure for Sausalito.
The measure by Timothy McCloud would place a 4% tax on the annual operation of hashish retail companies. The tax can be a common tax, with revenues supplied to the town’s common fund on a quarterly foundation, in line with the initiative.
The Metropolis Council heard a presentation on the proposal on Tuesday and directed employees to organize a report on its potential impacts. The council didn’t take a vote.
The council mentioned employees would examine the initiative’s potential fiscal results in addition to its results on the overall plan, infrastructure, companies and land use, amongst different points.
Proponents are gathering signatures to qualify the measure for the poll. The initiative wouldn’t change Sausalito municipal code, which bans hashish amenities throughout the metropolis, together with cultivators, distributors, producers, processing amenities, testing amenities, medical dispensaries and retail retailers. It could solely apply to deliveries, the initiative said.
The tax would apply if Sausalito had been to permit storefront hashish retail sooner or later. It could not apply to cultivators, nurseries, testing laboratories, distributors or producers that the town may select to allow sooner or later, in line with the initiative.
The measure would additionally allow the town to amend the initiative by reducing the tax or clarifying the strategy of assortment. The tax couldn’t be elevated or repealed with out voter approval.
McCloud famous issues concerning the metropolis’s finances in a possible recession.
“Once I ran for Metropolis Council I heard from residents about them being uncomfortable with the town’s monetary stability,” McCloud mentioned. “This doesn’t authorize any retail hashish. It must come about by one other measure or the Metropolis Council must vote on it.”
The town is required to organize a report inside 30 days if the measure qualifies for the poll.
“Nonetheless, since a few of these objects could take a while to check, it’s normally a good suggestion for cities to organize the report whereas signatures are nonetheless being gathered,” mentioned Metropolis Lawyer Sergio Rudin.
Councilmembers and a few public commenters expressed issues concerning the validity of statements getting used to solicit signatures.
Councilmember Joan Cox mentioned there have been studies of signature gatherers expounding on the town’s funds as a method to accrue signatures.
“We noticed final 12 months some grave misinformation that was being distributed relating to some poll measures,” Cox mentioned.
Sandra Bushmaker, a Sausalito resident and former Metropolis Council member, famous that one signature gatherer mentioned the town’s deficit, however couldn’t present extra data.
“In questioning the canvasser, they knew nothing else,” Bushmaker mentioned.
The council additionally expressed issues concerning the obvious exemption of potential future hashish companies in Sausalito.
“I really feel that it’s kind of evil genius in the best way that’s written,” Cox mentioned. “I wished to make sure we perceive the implications of the initiative as written.”
Nurit Raphael, the proprietor of a hashish supply service in San Rafael, mentioned she opposes the measure. She mentioned her service may be compelled to make deliveries outdoors of the town limits if it passes.
“We’re on the point of collapse because of overtaxation,” Raphael mentioned. “That is probably the most out-of-touch hashish initiative that I’ve seen in a very long time.”
A hashish measure on the November 2022 poll, which might have established retail hashish for a corporation known as Otter Manufacturers, didn’t go. A competing hashish initiative was faraway from the November poll after a Marin choose dominated it was invalid as a result of the measure’s two proponents weren’t Sausalito residents.