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Ceres council orders review of cannabis pilot program, looks at taxes and caps
Summary
After staff reported more than $1 million in unpaid public‑benefit payments and broader market pressures on legal cannabis, the Ceres City Council asked staff to return with tax options, alternatives to development agreements, and a possible cap on new cannabis businesses.
Ceres' council members on April 28 directed city staff to return with a menu of policy options after a staff review found the city's eight‑year cannabis pilot program has produced significant administrative and revenue challenges.
The city attorney outlined the program's origins and the two main revenue approaches the council has used: the original public‑benefit development agreements that required fixed monthly payments and a possible transition to a gross‑receipts business license tax authorized previously by voters. The attorney said the city has collected roughly 60% of amounts owed under the development agreements to date and that a substantial balance remains outstanding, which staff estimated at over $1 million.
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