(CA) Palm Springs to set marijuana tax rate

Measure B vote allows city to assess up to 15 percent

Operators of medical marijuana dispensaries may find out early next month how much of their bottom line will go to the city in taxes.

Palm Springs voters on Tuesday overwhelmingly approved Measure B — a tax of up to 15 percent on the proceeds of medical marijuana dispensaries. Unofficial final results show 66.3 percent of voters supported it, while 33.7 percent opposed it.

The City Council will likely set the tax rate at its Dec. 4 meeting and discuss the future of a fourth dispensary.

The Riverside County Registrar of Voters expects to certify the results Tuesday. City Attorney Doug Holland said the city could levy the tax as soon as Dec. 4, when council reviews the election results, but expects city leaders won’t rush it.

“We hope we can start to impose it as early as Jan. 1 … and give everyone reasonable notice,” he said.

Holland said the tax could generate anywhere from $250,000 up to $1 million a year depending on the tax rate, how many dispensaries are in operation and the number of patients.

The tax will affect the three legal dispensaries and any illegal ones still operating.

http://www.mydesert.com/article/20131110/NEWS01/311100018/Palm-Springs-set-marijuana-tax-rate