During a recent government meeting, the Visalia City Council discussed the first reading of Ordinance 2024-06, which proposes the establishment of a cannabis business tax. This ordinance aims to add Chapter 3.14 to Title 3 of the Visalia Municipal Code, specifically targeting cannabis business activities within the city. The council also considered Resolution 2024-24, which seeks to place a cannabis tax measure on the November 2024 general election ballot.

The proposed tax would not take effect unless approved by voters on November 5, 2024. If enacted, it would impose a tax rate not exceeding 10% of gross receipts or up to $10 per square foot for cultivation, potentially generating approximately $500,000 annually. The funds would be allocated to general governmental services, including public safety, emergency response, youth programs, and addressing homelessness.

City officials clarified that this ordinance does not create a regulatory framework for cannabis businesses to operate in Visalia; it merely establishes a taxation mechanism should the city council or state law permit such businesses in the future. The council's discussions were informed by public opinion research conducted by FM 3 Research, which indicated strong support among residents for allowing cannabis businesses and for the proposed tax measure.

The council's actions follow California Senate Bill 1186, which restricts local agencies from prohibiting the retail sale of medicinal cannabis by delivery only, effective January 1, 2024. The city has been preparing for potential changes in cannabis regulations, including hiring consultants to assist with the tax measure and zoning ordinance updates.

The council is expected to continue discussions on this topic, with the potential for further regulatory frameworks to be established depending on future state mandates or council decisions.