Cannabis tax measures pass easily in Solano, Santa Clara counties

A pair of cannabis tax measures in two cities in Solano County have passed easily, according to the Solano County Registrar of Voters.

Voters in Santa Clara, Morgan Hill and Mountain View also overwhelmingly approved cannabis businesses taxes in each of their cities during Tuesday’s election.

Measure C in Suisun City passed with 74.78 percent of votes and Measure E in Benicia passed thanks to 76.17 percent of the vote.

The Suisun City measure will tax up to 15 percent of gross receipts and $25 per square foot of space used for commercial cannabis activities, with revenue going to general city services. The measure needed a majority vote to pass.

The Benicia measure is a tax of up to $10 per canopy square foot for commercial cannabis cultivation and six percent of gross receipts for general city services. It also only needed a majority vote to pass.

In other races across Solano County, Measure S in Vallejo, which sought an approval of a $194 million bond to repair and update classrooms and other facilities passed the two-thirds threshold needed, collecting 68.57 percent of the vote.

In Dixon, Measure N, a half-cent sales tax for 10 years that was requested for street maintenance and roadway improvements did not pass the required two-thirds threshold for passage, collecting 62.5 percent of votes.

All three Santa Clara taxes passed with more than 75 percent approval, according to preliminary vote counts, preparing the cities to take their next steps toward the sale and cultivation of marijuana.

Santa Clara and Morgan Hill will be able to implement a maximum 10 percent tax on gross receipts and Mountain View will cap its tax at 9 percent. Mountain View will not collect revenue from cultivation, while Morgan Hill will begin taxing at $10 per square foot and Santa Clara at $25 per square foot.

The measures required simple majorities to pass, and received resounding support from voters. Santa Clara expects its tax to bring in about $2.2 million, Mountain View about $1 million and Morgan Hill between $340,000 to $750,000.

Santa Clara Vice Mayor Kathy Watanabe said in mid-October that the measure is not designed for marijuana to “take over the city,” but to prepare for its future role in the area’s economy.

Revenue from the cannabis business taxes will be directed toward improving infrastructure and public services like police and emergency response.