Rancho Cordova's measure to tax marijuana homegrowers

Rancho Cordova, CA is a city in the Sacramento/Arden/Arcade/Roseville metro area in Sacramento County. It has over 60,000 people and over 21,500 housing units.

On August 29, 2010, Peter Hecht of The Sacramento Bee wrote an article entitled "Rancho Cordova asking voters to OK tax on homegrown pot for personal use." The city is the first to propose a tax on homegrowers.

Rancho Cordova has already passed an ordinance which declared outdoor marijuana grows over 25 square feet an unlawful public nuisance. The ordinance also makes it so special permits are required for indoor grows over 25 square feet.

Appearing on the city's November 2nd ballot is the Personal Cannabis Cultivation Tax measure, which would impose a tax of $600 per square foot on indoor cannabis cultivation up to and including 25 square feet, and $900 per square foot for anything bigger; it makes no distinction between recreational and medical growing. Mayor Ken Cooley said Rancho Cordova is protecting its interests if Prop 19 passes. He said the measure is a response to concerns about "problems caused in neighborhoods by growing marijuana."

The California director for NORML Dale Gieringer said the cultivation tax is likely an "unconstitutional" and "punitive" measure to keep people from growing marijuana. Gieringer said nobody would pay the tax, the city would collect no money, and he thinks courts would throw it out. The measure allows the city to lower the tax rate. If the measure passes, a resident growing in a 5x5 space indoors would be taxed $15,000 a year. The California director of Americans for Safe Access, Don Duncan, spoke out against the measure. City spokeswoman Nancy Pearl said cops and firefighters and building and safety people will have to work more and costs will go up, and the homegrow tax is meant to pay for threats to neighborhoods from potential traffic, crime, stench, nuisances, as well as city code enforcement.

In 2009, a City Council member suggested a ban on residential marijuana growing after a woman complained about the smell of weed coming from neighbor growing medical marijuana. Also, code enforcement officers in the city have discovered a few cases of fire hazards from dangerous wiring and altered circuit boxes for residential marijuana growing. And the city recently responded to people complaining about mold in a rental unit (which they had caused because they were growing marijuana in their bedroom).

Also appearing on the city's ballot is measure which would impose a gross receipts tax of 12 to 15% on weed sales if any weed stores are allowed to open in the future. It was introduced in case courts force the city to accept weed stores. The city currently bans medical marijuana dispensaries.

In Sacramento, there is a measure on the November ballot that would levy a gross receipts tax of 2 to 4% on 39 existing medical marijuana dispensaries, and impose of tax of 5 to 10% on new retail weed stores if Prop 19 passes.