How will Visalia tax its cannabis businesses? Voters will decide

VISALIA, Calif. ( KSEE/KGPE ) – The voters of Visalia will decide in November how the city’s cannabis businesses will be taxed.

On Monday, the Visalia City Council adopted a resolution to place the Visalia Cannabis Tax Authorization for Maintenance of Essential Services on the November 5 ballot. The revenues collected from cannabis sales could reach $500,000, city officials say.

According to the City of Visalia, if the measure is adopted by a majority of voters, it will tax cannabis businesses at a rate not exceeding 10% of gross receipts – or up to $10 per square foot for cultivation. It will also require spending disclosures.

“Although currently retail cannabis sales are illegal in Visalia’s city boundaries, this measure would provide the City Council with more flexibility to address State mandates or policy direction change in the future,” said City Manager Leslie Caviglia.

The money could help fund general governmental services such as public safety, emergency response, youth programs, addressing homelessness, and maintaining public spaces, officials say.

“Should retail cannabis arrive in Visalia, we want to ensure we can appropriately tax the industry to deliver services that are critical to our community,” said Mayor Brian Poochigian. “Providing community services and safety is a top priority, the cannabis tax will help us continue to maintain our rapid emergency response rates, youth programs, safety, and much more.”

According to the city, if the measure passes, this tax will only be levied if state law mandates or the City Council approves an ordinance allowing cannabis retail business operations within Visalia city limits.

To learn more about the Visalia Cannabis Tax Authorization for Maintenance of Essential Services, click here .

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