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Council flags proposed state change to cannabis excise tax distribution; seeks resolution
Summary
Councilmembers discussed a proposed state bill raising the excise tax on adult‑use cannabis from 10% to 15% and altering how revenue is distributed; members asked administration to draft a resolution expressing concerns about shifting funds away from municipalities.
Councilmembers warned of a state legislative proposal to raise the excise tax on adult‑use cannabis from 10% to 15% and to change the distribution formula for municipal shares, and they asked administration to prepare a resolution expressing the city's concerns.
Mayor Hawkins said the proposed change would not necessarily increase city receipts because the state would alter the share that is returned to municipalities. "The thing they wanna change is the percent that was going to come to the municipalities that were gonna have these places, they weren't all to go to the state," he said, and urged council to consider a resolution asking state legislators to preserve previously expected municipal funding. Councilmember Vandiver (spelling varied in the transcript) urged that any resolution include specific points about costs municipalities have incurred for public safety, traffic and other impacts tied to licensing cannabis businesses.
No formal resolution was passed at the meeting. Council asked legal counsel to draft resolution text the body could consider at a future meeting, and members indicated they would communicate specific items to be included in the draft.
