The Sebastopol City Council on Tuesday night rejected, on a 3-2 vote, a proposal to impose a business tax on the use of marijuana if it is legalized by voters in November.
"Do we want to be have store-front sales? Do we want Sebastopol to be the place where people come for their recreational marijuana?" asked Councilman Guy Wilson, who opposed the measure.
"My heart tells me we should wait until after the ballot in November," said Councilwoman Linda Kelley.
The proposal was to put a tax not to exceed 5 percent on revenues of all marijuana-related businesses, should Californians approve a ballot measure legalizing marijuana for anyone over 21.
"We just adopted a budget that has been the most painful budget I've seen in 12 years on the council and we have the opportunity to potentially enhance our revenue stream," said Councilman Larry Robinson, who proposed the tax.
Robinson said he was not advocating for the legalization, but felt Californians will eventually legalize it. "This is about whether the city of Sebastopol wants to be in the position to tax it if the state decided it is legal," Robinson said. "If this council doesn't want it, the next one will."
The proposal would have put a 5 percent business tax on all medical and recreational marijuana-related business, including the growers, distributors and stores. It is patterned after a similar tax that the city of Oakland imposed in May.
As a business tax that generates revenue for the city's general fund, it would have only required a simple majority to pass.
The council felt, however, that it should wait to see the outcome of the November election before spending $10,000 to put it before Sebastopol voters.
Robinson and Councilwoman Kathleen Shaffer voted for the tax, while Wilson, Kelley and Mayor Sarah Gurney voted against it.
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