Millions of dollars in additional cannabis tax revenue could become available in Sacramento County, Calif., following this November’s election.
That’s because the county’s board of supervisors voted, 3-2, on July 26 to allow voters to decide the fate of a proposed ordinance that would tax cannabis and hemp business operations in unincorporated parts of the county. Since the proposal would authorize a new tax, it needs a two-thirds majority to pass. All voters in the county are eligible to cast ballots on the measure.
Should the ballot question pass, the board of supervisors would still hold the authority to establish (or not to establish) a regulated industry in the unincorporated parts of the county.
Currently, the county only allows cannabis businesses to operate within city limits, including Sacramento—California’s sixth-largest city of roughly 500,000 people.
Revenue generated from the tax would go solely toward funding Sacramento County’s homeless services, including those benefiting the American River Parkway—a 23-mile stretch that covers 4,800 acres and has been designated both a state and national wild and scenic river. The board of supervisors would not be able to divert the tax revenue elsewhere.
“I know local governing bodies want to maintain discretion over how they use funds, but to specifically dedicate these funds to deal with a crisis that is the biggest crisis this county probably ever faced, frankly, or any municipal body, I think is important,” District 3 Supervisor Rich Desmond said during the July 26 board meeting.
County officials estimate there are up to