Cannabis

Cannabis Tax Measure - General Tax 

 “Shall the City adopt an Ordinance that taxes cannabis businesses up to 6% of gross receipts for retailers and up to 1% of gross receipts for all other cannabis businesses if they were to be permitted in the City, which is expected to generate an estimated $300,000 to $600,000 annually to fund general municipal services for Huntington Beach and will be levied until repealed by the voters?”  [YES / NO]

  1. CITY ATTORNEY’S IMPARTIAL ANALYSIS OF MEASURE ON CANNABIS BUSINESS TAXATION
  2. ARGUMENT IN FAVOR OF MEASURE ON CANNABIS BUSINESS TAXATION 
  3. ARGUMENT AGAINST MEASURE ON CANNABIS BUSINESS TAXATION 
  4. REBUTTAL TO ARGUMENT IN FAVOR OF MEASURE ON CANNABIS BUSINESS TAXATION

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Community Input on Cannabis Regulatory Framework

The City of Huntington Beach is seeking input from residents, businesses, and community stakeholders to guide its development of a regulatory framework for commercial cannabis businesses, if they are to be permitted.

Approximately 64.6% of Huntington Beach voters supported "Measure A: Cannabis Business Tax" on June 7, 2022 Primary Election, but failed to reach a 2/3 of voters required to pass.  On the July 5, 2022 meeting, the City Council considered placing two City-sponsored ballot measures regarding cannabis business regulation and taxation for voter approval on the November 8, 2022 General Municipal Election.  On the July 19, 2022 meeting, the City Council voted and adopted resolutions to place only one ballot measure asking voters whether to impose General Tax on commercial cannabis businesses if they were to be allowed in Huntington Beach.  

The City Council also directed the Ad Hoc Subcommitee and City staff to continue working towards developing regulatory and zoning ordinances for the City Council's consideration at a future meeting. 

The DRAFT ordinances are here for your review:

  1. DRAFT Ordinance No. XXXX (Business Regulation): An Ordinance amending Chapter 5 of the Huntington Beach Municipal Code and Adding Section 5.130.
  2. DRAFT Ordinance No. XXXX (Land Use Regulation): An Ordinance amending the Chapters 211 and 212 of the Zoning and Subdivisions Ordinance and amending the Title 20 of the Zoning and Subdivisions Ordinance by repealing Section 204.18, 204.20, and 204.22 and adding Section 230.54.  
  3. DRAFT Commercial Cannabis Regulation including standard operational standards. 

You are encouraged to share your thoughts and suggestions about the DRAFT ordinances. Written comments and feedback can be emailed to [email protected]  

Cannabis Community Forum on Thursday, June 9, 2022

The City wishes to thank residents and community stakeholders for attending the Cannabis Community Forum on Thursday, June 9, 2022 in-person and via Zoom and providing valuable input.  City staff presented key regulatory features of the draft ordinances and the public had an opportunity to hear from members of the City Council's subcommittee (Councilmembers Bolton, Kalmick, and Peterson), ask questions, and provide comments. 

The City may have additional town hall or community forum. Please email to [email protected] to subscribe to a listserve to be notified of any future meetings. 

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Measure A: Cannabis Business Tax - Special Tax

 “Shall the City adopt a special tax measure of up to 6% of gross receipts on cannabis retailers and up to 1% of gross receipts on all other cannabis businesses, which is expected to generate an estimated $300,000 to $600,000 annually for the specific purposes of funding police and homeless and behavioral health services, and levied until terminated by voters?”  [YES / NO]

  1. MEASURE A – ARGUMENT IN FAVOR
  2. MEASURE A – CITY ATTORNEY’S IMPARTIAL ANALYSIS
  3. No arguments were submitted in opposition to MEASURE A.  

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Relevant Documents & Contact Info

For any questions, please contact the City Manager’s Office at 714-536-5202. You can also contact the City Clerk's Office at 714-536-5227 or visit the City's Election page here: https://www.huntingtonbeachca.gov/government/election_info/.  

 


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