Pass: 4983 / 84.34% Yes votes ...... 925 / 15.66% No votes

See Also: Index of all Measures

Impartial Analysis from City Attorney

A `YES' vote, by a majority of the voters voting, would approve proposed amendments to the Albany Municipal Code that establish a business license tax to be paid by an authorized cannabis business in Albany.

A `NO' vote would disapprove proposed amendments to the Albany Municipal Code that establish a business license tax to be paid by an authorized cannabis business in Albany.

Background In 1996 the voters of California approved Proposition 215, The Compassionate Use Act, which allowed Californians to obtain marijuana for medical purposes where deemed appropriate by a physician. The State Legislature, in 2003, approved a bill adding California Health and Safety Code section 11362.83. The State permitted California cities or counties, if they so choose, to approve the establishment of medical marijuana dispensaries. The Albany City Council placed an advisory measure on the November, 2007 ballot asking whether Albany voters supported the establishment of a single medical marijuana dispensary in the City of Albany. The voters approved the 2006 advisory measure. Thereafter, the City Council passed an ordinance permitting the establishment of one dispensary and enacted the regulatory framework for operations of the business. This ordinance is codified in the Albany Municipal Code commencing with Section 20.20.110. Applications for the one available permit have been submitted.

The Albany Municipal Code, Chapter 5, Section 5-2, requires businesses in Albany to pay a business license tax. The City's business license code does not contain provisions that establish a business license tax for a cannabis business. Since this is a new type of business that requires a business license, the business license tax specifically applying to a cannabis business can only be approved by the voters. The City Council has placed this Measure on the ballot. This Measure requests that the voters approve amendments to Chapter 5 of the Albany Municipal Code establishing a business license tax for a cannabis business that is approved to operate in Albany.

The Proposed Measure lf this Measure is approved, a new Section 5-10 would be added to the Albany Municipal Code. A Cannabis business, as defined under Section 5-10.1 of the Code, for profit or non profit, will be required to pay an annual business license tax. Section 5-10.2 requires a for profit cannabis business to pay a business license tax of $25 per thousand dollars of gross receipts. A Non Profit Organization that operates a cannabis business would pay a business license tax of $25 per square foot on all business improvement occupied by the Cannabis Business.

If this Measure is not approved by the voters, then a cannabis business would not be required to pay a business license tax as set forth in Section 5-10 of the proposed Measure.

Financial Impact If this Measure passes, the revenue generated from a cannabis business would be placed in the General Fund. The amount of the tax would depend on either the gross receipts or the size of the premises.

s/ROBERT ZWEBEN, City Attorney