Laserfiche WebLink
File Number: 16-194 <br />instructed staff to come back with a time line and have a survey. Would this require a 2/3 <br />vote or a 50% + 1? Mayor Cutter would like the funds to go to the General Fund and have <br />Council designate where funds should be spent. <br />Councilmember Prola agrees with 50%+1. Does not believe a survey is necessary. He does <br />not believe that there was a problem with the tax passing in any other City, other than <br />Riverside. He does favor the flexibility of the rate and suggested having a sliding scale. As <br />sales increase and the dispensary is making more revenue, increase the rate. <br />Rich stated 50%+1 is most common. Jurisdictions have adopted a lower % for medical and <br />should the State pass the Recreation use of marijuana the City can consider implementing a <br />higher tax rate for recreational use. Oakland has done this as well as Sacramento; 7% for <br />medical and 10% for recreational. <br />Councilmember Lee supports the 10% maximum rate. What's important is giving dispensary <br />time to adjust. If we oppose a rate, it will have to the following year. If we impose now, it will <br />be difficult. <br />Mayor Cutter asked Mr. Engelbart, if the City were to impose a tax of 5%, would the <br />dispensary that was approved by Council be allowed to sell both marijuana for both medical <br />and recreational purposes, (question was hypothetical). <br />City Attorney Pio Roda stated if recreation marijuana would be allowed, there would need to <br />be an amendment to the ordinance. <br />Mr. Engelbart stated that a cannabis related tax and does not have to specify; the tax <br />difference (5% for medical and 10% for recreational), it will depend on how ordinance is <br />structured. It would be a local controlled issue. San Leandro has approved Harborside to be <br />the dispensary and should they chose to sell marijuana for recreational purposes, Harborside <br />will have to come back to the City and ask for permission. <br />Mayor Cutter confirmed that the City maintains control of who may or may not open up a <br />dispensary. City Attorney Pio Roda confirmed. <br />Councilmember Prola stated that Harborside's agreed to designate 4% of gross funds to <br />community benefits fund as well as donate additional 1 % gross receipts of 10% net income. <br />Councilmember Prola stated the rate should state up to 10% because he feels if we designate <br />in the ballot measure, it may force some people to vote against it and should the future <br />council wish to change it, they can change it. <br />Rich wants Harborside to comply with current approval and not with tax. And there is a <br />condition that states if tax is approved the designated contribution amounts would go away. <br />Mayor Cutter - said her understanding is that Harborside will be opening soon and that would <br />give us 5 months to see how much revenue is coming in and would help in deciding what the <br />tax rate would be imposed at. Which would the City benefit more from? The contributions or <br />the tax rate <br />Community Development Director Battenberg stated her department just received <br />City of San Leandro Page 5 Printed on 4111/2016 <br />