League of Women Voters of California Education Fund
	Alameda County, CA July 21, 2009 Election
	Measure F Establish a new tax rate for "Cannabis Businesses" City of Oakland Ordinance - Majority Approval Required Official Final Results Pass: 40439 / 80.0% Yes votes ...... 10107 / 20.0% No votes See Also: Index of all Measures

Arguments For Measure F

The voters of California authorized the use of medical cannabis in 1996 - in a ballot initiative which Oakland voters supported by over 79% of the vote. Therefore, the City of Oakland has worked to create regulations and a permitting system for medical cannabis dispensaries. Regulations are used to prevent nuisance while protecting patients, and keeping customers away from the criminal market. Oakland's business tax system does not yet have a category for medical cannabis dispensaries. As a result, they have been paying at the "general retail rate," of $1.20 per $1,000 of gross receipts. This ballot measure creates a new business tax classification and rate for cannabis dispensaries, with anew, increased rate of $18.00 per $1 ,000. This will provide revenue to help balance Oakland's budget and help with funding for essential public services. State law in California requires that any new business tax rate must be approved by the voters. Community organizations, city leaders and the medical cannabis dispensaries themselves all support this measure, which will help avoid cuts to services for the public. We ask for your yes vote. For more information, visit http://www.Yes40akland.org s/Dr. Frank H. Lucido Family Practice Physician s/Rebecca Kaplan Oakland City Councilmember At-Large s/J an S. Rodolfo, RN California Nurses Association s/Richard Lee President - Oaksterdam University s/Nate Miley Alameda County Supervisor s/Nate Miley Alameda County Supervisor (No arguments against Measure F were submitted)

Full Text of Measure F

ORDINANCE AMENDING THE CITY OF OAKLAND'S BUSINESS TAX TO ESTABLISH A NEW TAX RATE FOR "CANNABIS BUSINESSES" WHEREAS, through the passage of Proposition 215, the ...- voters of California authorized the use of cannabis for medical purposes in 1996; and WHEREAS, by a 79% vote in favor of the proposition, the voters of Oakland overwhelmingly approved Proposition 215; and WHEREAS, the City Council of the City of Oakland has adopted medical cannabis permitting regulations to prevent nuisance, provide for effective controls, enable medical cannabis patients to obtain cannabis from safe sources, and provide appropriate licensing and revenues for the City in a mannler consistent with state law; and WHEREAS, every person engaged in business activity in the City of Oakland is required to obtain a business tax certificate and to pay the City's business tax; and WHEREAS, the City of Oakland has a business tax system which applies to all businesses in the City, and which contains a list of categories of types of businesses, and provides for the collection of business taxes at specified rates based on the classifications of the businesses operating in the City; and WHEREAS, because permitted medical cannabis dispensaries did not exist at the time the business tax system was created, Oakland's current business tax category list does not contain a specific tax category for cannabis businesses; and WHEREAS, cannabis businesses are currently taxed under the business classification of general retail at a business tax rate of $1.20 per $1,000 of gross receipts, rather than under a specific category; and WHEREAS, under the newly created business classification cannabis businesses will be taxed at a rate of $18 per $1,000; and WHEREAS, accordingly, the City Council of the City of Oakland desires to amend Chapter 5.04, adding section 5.04.480 to the Oakland Municipal; and WHEREAS, all revenues received from the tax will be deposited in the general fund of the City to be expended for general fund purposes; now, therefore, be it RESOLVED: That the City Council of the City of Oak.. land does hereby request that the Board of Supervisors of Alameda County order the Special Municipal election, consistent with the provisions of state law; and be it FURTHER RESOLVED: That the City Council of the City of Oakland does hereby submit to the voters at the special election, not more than 88 days and not more than 150 days from the date of passage of this resolution, the text of the proposed ordinance, which shall be as follows; and be it FURTHER RESOLVED: That each ballot used at said municipal election shall have printed therein, in addition to any other matter required by law the following: ORDINANCE AMENDING THE OAKLAND MUNICIPAL CODE TO MODIFY THE BUSINESS TAX BY CREATING A NEW "CANNABIS' BUSINESS CLASSIFICATION Be it ordained by the People of the City of Oakland: Section 1. The Municipal Code is hereby amended to add, delete, or modify sections as set forth below (section numbers and titles are indicated in bold type; additions are indicated by underscoring and deletions are indicated by strike-through type; portions of the regulations not cited or not shown in underscoring or strike-through type are not changed). Section 2. Code Amendment. Chapter 5.04 of the Oakland Municipal Code is hereby amended adding Section 5.04.480 to read as follows: 5.04.480 Cannabis. A. Every person engaged in a cannabis business not otherwise specifically taxed by other business tax provisions of this chapter, shaH pay a business tax of eighteen dollars $18 for each one thousand dollars ($1.000.00) of gross receipts or fractional part thereof. B. For the purpose of this section, "cannabis business" means business activity including, but not limited to, planting. cultivation, harvesting, . transporting , manufacturing, compounding. converting. processing, preparing, storing, packaging, wholesale, and/or retail sales of marijuana, any part of the plant Cannabis sativa L. or its derivatives. Section 3. Severability. Should any provision of this Ordinance, or its application to any person or circumstance, be determined by a court of competent jurisdiction to be unlawful, unenforceable or otherwise void, that determination shaH have no effect on any other provision of this Ordinance or the application of this Ordinance to any other person or circumstance and, to that end, the provisions hereof are severable. Section 4. California Environmental Quality Act Requirements. This Ordinance is exempt from the California Environmental Quality Act, Public Resources Code section 21000 et seq., including without limitation Public Resources Code section 21065, CEQA Guidelines 15378(b)(4) and 15061(b)(3), as it can be seen with certainty that there is no possibility that the activity authorized herein may have a significant effect on the environment. Section 5. Majority Approval; Effective Date.This Ordinance shall be effective only if approved by a majority of the voters voting thereon and after the vote is declared by the City CounciL The effective date of this Ordinance shall be January 1, 2010. Section 6. Council Amendments. The City Council of the City of Oakland is hereby authorized to amend Section 5.04.480 of the Oakland MunicipaJ Code as adopted by this Ordinance in any manner that does not increase the tax rate, otherwise constitute a tax increase for which voter approval is required by Article XIII C of the California Constitution or entirely dispense with the requirement for independent audits stated in Section 4.28.190. FURTHER RESOLVED: That the City Council of the City of Oakland does hereby find and determine that pursuant to Article xmc, section 2(b) of the California Constitution the City Council of the City of Oakland has adopted a resolution declaring the existence of a fiscal emergency in the City of Oakland that necessitates asking the voters to approve the proposed medical cannabis tax before the next regular election of the Oakland City Council;