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November 8, 2016 — California General Election

Marijuana Business Tax

November 8, 2016California General Election

City of San Jacinto
Measure AA - Majority Approval Required

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Election Results


7,748 votes yes (67.69%)

3,698 votes no (32.31%)

  • 100% of precincts reporting (18/18).
  • 11,446 ballots counted.

In the event future State or local law permits marijuana activities to operate in the City of San Jacinto, shall the City enact a tax on marijuana activities of up to $50 per square foot of space utilized for marijuana cultivation or manufacturing, and up to 15% of the gross receipts from marijuana and related products, generating approximately $1,250,000 annually to pay for general City services, such as police, fire, and parks, until ended by voters?

Impartial analysis / Proposal

Measure AA would establish a local gross receipts tax of up to 15% and up to a $50.00 per square foot cultivation/manufacturing tax on all San Jacinto businesses that transact in marijuana and marijuana-containing products (oils, creams, candies and “edibles”). The tax would cover marijuana cultivation and marijuana-product manufacturing, processing, testing, distribution and retail sale. 

Earlier this year, the San Jacinto City Council adopted a comprehensive ban on all marijuana uses, including marijuana dispensaries, direct-to-customer delivery services, marijuana cultivation, manufacturing, distribution, testing and transportation. In the event voters approve this ballot measure, the tax in question will only go into effect if regulations in San Jacinto change to allow marijuana uses.

While the City Council has the authority to adopt marijuana regulations, marijuana taxes must be approved by the voters under State law (California Proposition 218). It is specifically noted that Measure AA is a tax measure only. It does not amend the City’s marijuana regulations - it does not repeal the City’s current ban on marijuana uses.

However, a Statewide initiative measure is also on this ballot that would legalize possession and use of recreational marijuana (Proposition 64). While Proposition 64 would allow San Jacinto to continue banning most marijuana uses, it will require San Jacinto to reasonably allow indoor cultivation of medical and recreational marijuana.

Therefore, while the City currently bans marijuana uses, this tax is drafted broadly to cover both medical and recreational marijuana, as well as both wholesale and retail marijuana businesses, should State or local law change and allow these activities in San Jacinto in the future.

Measure AA was placed on the ballot by the City Council and, if approved, would establish the following tax rates on marijuana uses:

        –    a maximum 15% gross receipts tax on all marijuana businesses (wholesale or retail, medical or recreational marijuana); and

        –    an additional tax up to a maximum of $50.00 per square foot of space utilized for cultivation/manufacturing of marijuana or marijuana-containing products. This includes “grow rooms”, testing facilities and processing/distribution               facilities.

This is a “general tax” and, therefore, must be approved by a majority of the voters. It is estimated that Measure AA would generate $1,250,000 annually to the City’s general fund in the event the regulatory scheme is altered to allow some marijuana uses. The general fund pays for general City services such as police, fire, emergency response, street maintenance, parks and recreational programs. The tax rates set by Measure AA could be increased or decreased by the City Council provided the maximum rates listed above are not exceeded.

A “yes” vote on Measure AA will approve the marijuana business taxes identified above.

A “no” vote on Measure AA will not approve the marijuana business taxes identified above.

The above statement is an impartial analysis of Measure AA. If you desire a copy of the Measure, please call the elections official’s office at (951) 486-7200 and a copy will be mailed at no cost to you.


Arguments FOR



— Riverside County Registrar of Voters

Arguments AGAINST


— Riverside County Registrar of Voters
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