Santa Rosa official backs tax on pot shops

A proposal to locate a medicinal marijuana dispensary in Santa Rosa could do more than comfort the ill, it could help cure an ailing city budget.

That's the opinion of City Councilman Gary Wysocky, who would consider placing a measure on a future ballot to tax the profits of such dispensaries.

Oakland voters last year overwhelmingly passed a 1.8 percent tax on dispensary sales, becoming the first in the nation to do so.

The four Oakland dispensaries, which reported combined annual sales of more than $19 million, would generate an estimated $380,000 a year for that cash-strapped city.

With Santa Rosa continuing to face budget problems, including a projected $8 million budget deficit for the upcoming fiscal year, Wysocky said, "We'd be fools not to look at it."

City leaders in recent weeks have talked about putting one or more tax measures before voters to help close that gap. They range from a sales and parcel tax to an increase in hotel and business taxes.

A tax on marijuana sales also would require voter approval. But even in these times of anti-tax voter sentiment, Mayor Susan Gorin said, "I suspect that one would pass."

Wysocky said his idea, which would need more detailed study, will not affect his vote Tuesday when the City Council reviews a proposal to locate a dispensary on the edge of the South Park neighborhood.

He said if the tax idea does eventually move forward, he would favor increasing the number of dispensaries allowed by the city from two to four, each serving a maximum of 500 clients. One dispensary already exists on Cleveland Avenue.

Wysocky said expanding to four would allow the city to grab the revenue that would be lost should a dispensary be allowed on the edges of the city by county supervisors.

Wysocky said his proposal is more than just about money. It's about what people need and want, he said, citing a 1996 decision by state voters to legalize medical marijuana.

"I had an uncle who died of lung cancer years ago and I saw the benefit first-hand," he said.

You can reach Staff Writer Mike McCoy at 521-5276 or mike.mccoy@pressdemocrat.com.