Pot Delivery Could Be Taxed In Calabasas

CALABASAS, CA — This election, Calabasas is asking if it wants to cash in on the state green rush.

Even though cannabis businesses cannot operate within city limits, a ballot initiative known as Tax Measure C would place a 10 percent tax on the yearly gross receipts of businesses delivering products in the city. Under California law, cannabis can be delivered anywhere in the state, even in places like Calabasas where dispensaries are banned. Measure C would not change the ban on dispensaries: it would simply mean that the city would profit from activities it is compelled to permit.

The measure would also tax most cannabis-related activity taking place within the city, including "transporting, dispensing, manufacturing, producing, processing, preparing, storing, testing, providing, donating, selling, or delivering, or distributing" cannabis, cannabis accessories, or any cannabinoid products. The measure would not tax cannabis used for approved medical purposes.

The new tax — which is defined as an excise rather than a sales tax — is estimated to generate roughly $10,000 annually that would be spent for general city services like safety and transportation, which would come at a time when depressed sales tax revenue has caused the city to dip into its reserve funds.

The tax would also be applied to any future dispensaries in Calabasas, should voters ever decide to allow them - or Sacramento forces them to.

"While cannabis sales are currently prohibited in Calabasas, there are proposals pending in Sacramento, which would require the City to allow cannabis sales," Councilmembers Fred Gaines and David Shapiro wrote in a letter in favor of the measure. "That's why the City Council voted unanimously to ask Calabasas voters to tax cannabis sales should they ever be allowed."

Theoretically, 10-percent tax would continue if dispensaries are allowed in Calabasas, potentially on both delivery and in-store purchases. If they were, it's estimated they would generate $300,000 each annually.

The proposal is generally approved by much of the city's leadership. In addition to Gaines and Shapiro, Mayor and Council candidate Alicia Weintraub has endorsed the measure, writing in an email to Patch that, "I am supporting measure c because this will help the city if the state should ever require us to permit cannabis retailers. This measure does not require the City to permit this use now."

Planning Commissioner, former mayor, and current Council candidate Dennis Washburn approves for similar reasons: "Measure C will allow Calabasans to generate some local revenue for control and citizens’ benefits if the state forces local governments to enable cannibis locations and sales in our city. It give Calabasas options to deal with future outcomes. It’s worthy of support," he wrote in an email to Patch.

Council candidate Susan Fredericks-Ploussard is not fully on board, writing that the tax is too high. "If we are going to charge a 10% excise tax on delivery of this, should we not charge 10% on wine deliverers from out of area? I could accept a small tax, 2-3%," she wrote to Patch. "I don't use cannabis, but it is legal, like alcohol."