Nov. Election in California – Emerging Cannabis Markets, Municipalities, and Counties

by Roger Tower on October 20, 2022

We have compiled this list of all cities with November cannabis regulation ballot measures in California!

The citizens will be voting this November if they want retail adult use cannabis in their city or municipality and this would create a perfect target for your next business. Let’s talk about how you can find CA cannabis business opportunities with the cannabis licensing consultants at WeCann Powered by CREC.

This article is about California Cannabis markets on election ballot but there are also 5 states with adult-use legalization, these are also top markets to find real estate and start applying.

States with November 8th adult use cannabis legalization on the ballot:

• Arkansas
• Maryland
• Missouri
• North Dakota
• South Dakota

CA Cannabis Legalization Vote Municipalities

• El Segundo
  • Ballot Measure W would allow storefront retail licenses in the city east of the Pacific Coast Highway and allowing the city to subsequently develop a separate ordinance to regulate non-retail cannabis businesses.
  • City also has a separate tax measure establishing taxes upon cannabis businesses not to exceed $ 20 per square foot for cultivation and 10% of gross receipts for other cannabis businesses.
• Manhattan Beach
  • City has two separate measures, one of them a citizen led initiative to allow two retailers in the city, and a city led initiative to continue the ban on retail sales while allowing limited home cultivation.
  • Measure MB: A “yes” vote supports repealing the city’s prohibition on commercial cannabis, allowing up to three retail locations within the city.
  • Measure V: A “yes” vote supports maintaining the commercial cannabis prohibition and allowing limited indoor cultivation of marijuana within the city.
• Cudahy
  • City has a ballot measure to allow 2 storefront retail licenses in the city along with a 15% tax on cannabis businesses
  • Full ballot language: “To increase funding for parks, recreational programs, roads and sidewalks and other general governmental purposes, shall an ordinance authorizing and regulating storefront retail cannabis sales and other commercial cannabis activities be approved with prohibitions on retail operations within 600 feet of schools, churches, childcare facilities and other sensitive uses and with retailers required to pay a 15% gross receipts tax to raise approximately $3,581,952.75 annually until ended by Cudahy voters?”
• South El Monte
  • Measure CM: A “yes” vote supports allowing up to three marijuana retail businesses, establishing an 8% general tax on noncultivation cannabis business proceeds and $25 per square foot of cultivation space, and providing tax revenue for general services.
  • Measure X: A “yes” vote supports allowing marijuana businesses (5 dispensaries, 2 cultivation facilities, and others), establishing an 6% tax on retail sales, and providing tax revenue for specific programs.
• Sausalito
  • Measure K: A “yes” vote supports repealing the ban on marijuana sales in Sausalito, establishing a process for applying to operate a marijuana business, and requiring that the greater of 7.5% net profits or $50,000 from marijuana sales be paid to the city.
  • 1 retail license, 1 delivery license for first two years, then 1 more for every 4000 residents.
  • City currently does not allow cannabis businesses.
• Baldwin Park
  • Measure BP: A “yes” vote supports authorizing cannabis retailers to sell and deliver medical cannabis and cannabis products to adults; establishing a sales tax with retailers paying a 0.5% tax and 4% tax on gross receipt from sales; and authorizing City Council to modify rates up to 5%.
  • the city of Baldwin Park permits indoor commercial cultivation, manufacturing, distribution, and laboratory testing.  All retail uses are currently banned.
• Pacific Grove
  • Measure M – City of Pacific Grove Majority Voter Approval Required Cannabis Business Advisory Measure Should the Pacific Grove City Council be authorized to amend the Municipal Code to allow retail sales of medical or recreational cannabis, limited to one single location within the City.
  • Measure N – City of Pacific Grove Majority Voter Approval Required Cannabis Business Tax To fund general municipal expenses such as police, fire, roads and recreation, and for unrestricted general fund purposes, shall an ordinance be adopted establishing a City excise tax on cannabis businesses (which includes hemp) at an annual rate not to exceed 6%.

Cannabis Tax-Only Measure Municipalities

• Los Angeles County
  • 4% for gross receipts for retail operations, 3% for manufacturing and distribution, $4 per square foot for mixed light cultivation and $7 per square foot for indoor cultivation.
  • Los Angeles Unincorporated County does not yet allow cannabis businesses to operate, this measure is a first step as the county works on implementing an adult use program.
  • the initial plan will allow for up to 25 storefront retail cannabis businesses countywide, 25 delivery retail businesses, 10 indoor/mixed light cultivation establishments, 10 manufacturing businesses, 10 distribution facilities and 10 testing laboratories.
• Sacramento County
  • 6% for retail, 4% for manufacturing, 3% for distribution, 2% for testing and, 3% for cultivation or $10 per canopy square foot.
  • Unincorporated county does not yet allow cannabis businesses to operate and has no current ordinance in development to do so, but this tax measure sets the stage for them to move forward in the future if a plan emerges.
• San Diego County
  • 6% for retail, 3% for distribution, 2% for testing, cultivation at 3% or $10 (inflation adjustable) per canopy square foot, and 4% for other businesses.
  • San Diego county is in the early stages of developing a cannabis program for the unincorporated county but we are still a year or two out at the earliest.
• Huntington Beach
  • Shall the City adopt an Ordinance that taxes cannabis businesses up to 6% of gross receipts for retailers and up to 1% of gross receipts for all other cannabis businesses if they were to be permitted in the City?
  • City is currently working on an adult use ordinance that is planning on holding readings of the ordinance in the near future if the tax rate is passed.
• Lynwood
  • Shall the City adopt the Ordinance establishing a 5% tax on businesses selling cannabis products at retail stores in the City and authorize the City Council to increase the tax to a maximum rate of 10%.
  • The city passed an adult use ordinance in August to allow 6 storefront retail licenses.  Lynwood has not yet announced a timeline for when they will be accepting applications.
• Woodland
  • MEASURE K CITY OF WOODLAND To improve City services, such as law enforcement, parks, youth/senior services, and street repair, and for general government use, shall a measure be adopted enacting a tax on cannabis businesses up to 10% of gross receipts
  • The city of Woodland passed its retail cannabis ordinance on June 7th and has been working on application rules and procedures the past few months.  We hope following a successful tax measure, the city may soon move forward with an application period.
• Monterey
  • Shall the measure to impose an annual cannabis (marijuana) business license tax of up to 8% of gross receipts from retail businesses, 2% of gross receipts from testing laboratories, and 6% of gross receipts from other cannabis businesses, with an additional tax on highly potent products?
  • The city of Monterey has been working on a cannabis ordinance to allow up to three retail licenses for several years now.  The passage of a tax rate could be an important step in the city finally moving forward with enacting their ordinance.
• Laguna Woods
  • For retail cannabis businesses — 4% to 10% of gross receipts or $5 to $35 per square foot; and * For all other cannabis businesses — 1% to 10% of gross receipts or $1 to $35 per square foot. The City Council would select tax rates within these voter-approved ranges.
  • The city currently does not allow cannabis businesses to operate.
• Claremont
  • For retail cannabis businesses (storefront and delivery) — 4% to 7% of gross receipts * For cultivation businesses — the greater of 2% to 3% of gross receipts or the applicable square footage of canopy space (“SF”) rate below: – 100% artificial lighting — $5 to $10 per SF – Mix of artificial and natural lighting — $4 to $7 per SF – No artificial light — $2 to $4 per SF – Nurseries (regardless of lighting) — $1 to $2 per SF * For testing laboratories — 1% to 2% of gross receipts * For cannabis distribution businesses — 2% to 3% of gross receipts * For all other cannabis businesses (including manufacturing and processing) — 2% to 4% of gross receipts
  • The city currently does not allow cannabis businesses to operate.
• Avenal
  • Commercial Cannabis Business in the City shall pay an annual Cannabis Business tax at a rate established by resolution of the City Council which rate shall not exceed twenty-five dollars ($25) per square foot of Commercial Cannabis Business area or fifteen percent (15%) of annual gross receipts per fiscal year, whichever is greater.
• Healdsburg
  • Shall the measure establishing a City of Healdsburg cannabis business tax at annual rates up to and not to exceed 8% of gross receipts for cannabis businesses
  • The city currently does not allow cannabis businesses to operate.
• McFarland
  • Shall a measure intended to improve City services, including police, fire/emergency, parks, youth/senior services, homeless community outreach and street repair, by enacting a tax on cannabis businesses of up to $10.00 per square foot for cultivation, 8% of gross receipts for retail, 2.5% of gross receipts for testing labs, and 6% of gross receipts for other cannabis businesses.
  • The city currently does not allow cannabis businesses to operate.
• Montclair
  • Shall the measure funding general Montclair services, including supporting 91 1/police/fire response; preventing thefts/property crime; recruiting/retaining firefighters, paramedics; retaining local business/ jobs; streets/potholes; addressing repairing homelessness; by taxing cannabis retail, delivery, cultivation, manufacturing/testing businesses at a rate of not more than 7% of gross receipts?
  • The city currently does not allow cannabis businesses to operate.

We hope you find this list helpful, of all cities that have a November cannabis regulation ballot measure in California for the citizens to vote on. These are cities we are watching very closely, because the citizens will ultimately be deciding in November if they want retail adult use cannabis there.

You may also be interested in the Hawthorne, CA cannabis application.

The cities we listed could be the perfect target for your next operation. Let’s talk strategies!

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