Measure M - Cannabis Business Tax

Background

The City of Healdsburg is currently one of the few Sonoma County cities that does not permit the sale of cannabis within City limits. The City Council’s adopted goals for 2021 included reviewing policy options for development of a possible ordinance governing commercial cannabis operations in Healdsburg. In early 2022, the City conducted a survey of community opinions on various cannabis policy options. At its May 2, 2022 meeting, the City Council heard a presentation of the community survey results as well as a more detailed review of policy options, based on the input from the community and City Council.  Currently, City Staff is preparing a commercial   cannabis ordinance for City Council consideration this fall.  

Cannabis Business Tax Measure Defined

On June 21, 2022, the City Council voted unanimously to place a measure on the November 8th ballot which would implement a tax on all cannabis sold in Healdsburg should the sale of cannabis become legal. This ballot measure does not permit the sale of cannabis in Healdsburg; that decision would be made by the City Council. Rather, this measure, if approved by Healdsburg voters, ensures that the assessment is already in place if cannabis sales do become allowed. A YES vote on the November 8th measure supports taxing cannabis sales when they become permitted in the City of Healdsburg. A NO vote rejects taxing cannabis sales in the City of Healdsburg.

All voters living within Healdsburg city limits who are registered to vote by October 24 will be eligible to vote on this ballot measure. The measure requires a simple majority support to pass.  If approved by local voters and if the City Council takes action to legalize the sale of cannabis, this measure is expected to generate up to an estimated $500,000 annually. 

Ballot Question

“Shall the measure establishing a City of Healdsburg cannabis business tax at annual rates up to and not to exceed 8% of gross receipts for cannabis businesses, and estimated to generate approximately $500,000 annually in tax revenue until ended by voters, to be spent for unrestricted general revenue purposes, including police, fire and emergency services, parks, affordable housing, and street maintenance, be adopted?”

Taxpayer Safeguards are Required

If approved by voters, all funds from this measure will be placed in the City of Healdsburg’s General Fund.  Funds will be used for general municipal services, including supporting police, fire and emergency services, parks, affordable housing, and street maintenance.  

For More Information

Please visit our website at: www.healdsburg.gov or contact City Clerk Raina Allan by email rallan@healdsburg.gov or via phone at 707-431-3316.

Documents