Marijuana Tax Measures May Roll In Pot of Funds For Silicon Vly.

MOUNTAIN VIEW, CA -- This Silicon Valley city may soon cultivate a new source of income for the local government if voters pass Measure Q next week, granting up to 9 percent on gross receipts of cannabis-related businesses be earmarked for the general fund.

The general fund is widely known as a city's largest pot of money, including this one seeking another way to pay for police and fire protection, emergency medical response, road repair and other critical city benefits such as park maintenance, library upkeep and senior services. The estimated value of such a government-by-initiative measure is about $1 million of unrestricted funds annually. It takes a simple majority to pass.

Currently, cannabis businesses are not permitted to operate in the city. Even if the measure passes, the City Council would still need to vote on an ordinance to regulate them.

Mountain View joins Morgan Hill with Measure I and the city of Santa Clara with Measure Q opting to capitalize on the up-and-coming business with voter approval for a midterm election promising to deliver a record turnout.

In November 2016, Mountain View residents voted in favor of supporting of Proposition 64, the statewide measure that legalized recreational marijuana, cultivation and sales. Cities and counties could then choose how to regulate it. Despite arguments against marijuana and the federal government still making it illegal, a tax imposed on cannabis operations received a thumbs up among seven out of 10 residents on a survey the city conducted last June.

Currently, 30 counties have banned the weed business -- at least until finalizing their own ordinances. Nineteen counties have commercial cannabis operations, with Santa Clara developing its own and San Mateo working on one that hasn't made this ballot.

As of Jan. 1, the California Cannabis Control Board -- which regulates the industry -- made it a mandate for cities and counties to decide how to proceed with the industry that provided Colorado a windfall in tax revenue. As the fifth largest economy in the world, California represents the largest marijuana industry in the world valued at $7 billion.

Medical marijuana has been legal in the state through the passage of the Compassionate Use Act of 1996 for specified medical purposes such as cancer under limited circumstances as recommended by a doctor.

The determinant moving forward is weeding out any objections of where they can go.

The California Association of Counties has seen a bit of "NIMBY" -- "not in my backyard" -- when it comes to having a marijuana business in the backyard.

"The public overwhelmingly said it wants marijuana in California legal, but it doesn't necessarily mean they want it in their neighborhood," CSAC Senior Legislative Representative Cara Martinson told Patch Monday about a week before the election.

Currently, Campbell within Santa Clara County taxes its cannabis operations by up to 15 percent, along with Hayward. Oakland, Pittsburg and San Leandro impose a 10 percent tax on the industry (with Santa Cruz allowing up to that percentage). Pacifica imposes 6 percent; while Berkeley places 5 percent on its operations.

In San Mateo County, voters will decide next week on whether Redwood City wants to impose a tax on pot-related businesses at a rate ranging from 1 to 4 percent, with a maximum of 10 percent to fund general city services. Passage of the Measure DD excise was estimated by the city to generate about $210,000 in unrestricted funds. Currently, cannabis nursery and delivery-only retail operations are only allowed.

Its neighboring residents in San Carlos may also opt to place a 10 percent tax on gross receipts of marijuana businesses. Measure NN could also pad the general fund budget with about $200,000, the city reported.

--Image via Shutterstock