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Staff asks council for direction on cannabis rules, taxes and enforcement
Summary
City staff asked council whether to keep the cannabis pilot, adopt sign/advertising limits, set a backup 15% tax under Measure K, require permanent structures, and authorize audits and sting operations; council gave staff direction to return with ordinance and development-agreement changes.
City staff opened an extended workshop on possible updates to Dixon's local cannabis rules, laying out options on signage and advertising, the adoption of a backup 15% sales tax authorized by Measure K, whether to permit deliveries or limit structures to permanent sites, financial auditing and randomized enforcement stings, and development-agreement lengths.
Mr. White (staff) summarized legal constraints and staff's recommendations: "We are gonna recommend that you adopt the full 15% tax rate," he said while noting the 15% operates mainly as a backstop for illicit operators and would not apply to properly permitted operators under development agreements. He also recommended phasing out temporary structures to permanent facilities, increasing physical and financial audits, and running randomized sting operations to target black-market delivery services. Council members debated each item and generally directed staff to keep the program as a pilot for now, to pursue phased transitions to permanent structures, to maintain existing permitted uses, to require audits (at least annually), and to return with ordinance language and DA amendments.
