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Dover council urges General Assembly to allow local marijuana tax
Summary
The Dover City Council unanimously approved a resolution asking the Delaware General Assembly to authorize a municipal share of marijuana tax revenue and to make the tax uniform across municipalities; members discussed seeking a 5% rate as a starting point.
The Dover City Council unanimously adopted a resolution urging the Delaware General Assembly to permit municipalities to collect a portion of taxes on legalized marijuana sales and to make any municipal tax uniform across jurisdictions.
Councilman David L. Anderson, who introduced the resolution, said local governments will bear costs from legalization while receiving none of the tax revenue. "A lot of the cost that will be born, from, legalized marijuana will be at the local level. However, 0 of the taxation is at the local level, and we believe that a small portion, should be reserved, for local governments," Anderson said.
Mayor Robin R. Christiansen told council he had contacted other jurisdictions and said the city is permitted under Title 22 to set municipal tax rates, but he urged a uniform approach: "while we're granted under title 22 to, set our own tax rate if we choose to do so, it would be better if we had a uniformed tax rate for all the municipalities and counties." Dr. Suttler said seeking a 5% rate was a reasonable starting position: "I think the 5%, as you said, seeking high is is the way to go."
Council members asked the mayor and staff to coordinate with other cities and counties and with the city's lobbyist as the issue moves through the General Assembly. The roll call on the resolution recorded nine votes in favor and none opposed.
The resolution is advisory; it expresses the council's position to state lawmakers and does not itself establish a municipal tax.
