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Arroyo Grande council directs staff to prepare cannabis tax measure, signals support for limited retail
Summary
After a staff presentation showing a local 6% tax could generate roughly $460,000, the Arroyo Grande City Council gave staff direction to prepare a local cannabis tax ballot measure and follow-up regulations, with broad support for retail storefronts, delivery and merit-based selection of operators.
Arroyo Grande — The City Council on Dec. 9 directed staff to prepare a local cannabis tax ballot measure and to return with draft regulations if voters approve, signaling preliminary support for allowing limited commercial cannabis activity in the city.
Management analyst Aliyah Burgum opened the study session by reviewing state law, noting the Medicinal and Adult-Use Cannabis Regulation and Safety Act (MAUCRSA) preserves local control over whether commercial cannabis businesses may operate within city limits and that state licenses may not conflict with local ordinances. Burgum said a market analysis prepared by HDL estimated a local cannabis tax set at 6% could…
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