Monterey County ballot measure would add marijuana tax for fire district funding

Monterey County is bringing in an estimated ten million dollars in cannabis tax revenue, through Measure Y passed in 2016.

But the Monterey County Regional Fire District largely doesn’t see that money, despite being responsible for enforcing regulations and responding to issues related to marijuana operations in much of the county.

“In our fire district specifically, we are looking at 7.5 million square feet of production. We are not receiving any of those funds. So we are having a financial impact to our organization,” Monterey County Regional Fire District Chief Michael Urquides, said.

The district is asking for funding through the June Ballot, titled Measure H. It is a tax on cannabis operations under their jurisdiction, they estimate would bring in 350 thousand dollars annually – enough to cover marijuana enforcement expenses.

“We are requiring millions of dollars of infrastructure be put in – fire sprinklers, water systems, and so forth,” Urquides said. “We can’t do business knowing this year we might get a little bit of tax money, (possibly) next year we won’t.”

Salinas-based attorney Aaron Johnson represents many of the businesses looking to operate in Monterey County. He tells KION he has been speaking with the fire district, and can support the measure under certain conditions.

“We are generally accepting that 18 cents a square foot is doable on the industry’s part. But then again, we are looking at what we are being charged overall and making sure that’s reasonable,” Johnson said.

The current Monterey County charge for cultivation is 15 dollars per square foot. Johnson said that is a tax the industry can’t afford.

“They (the cannabis companies) are going to be able to pay taxes and everyone wins. If they (the county) charge too high a tax overall, it’s hard for these businesses to provide any sort of benefit.”

Urquides admits there is a concern another tax could lead to some businesses not reporting their production, and ending up on the black market. But money from Measure H would help crack down on the overall problem. “We already know there are areas in our district with illegal grow operations. Once we can get dedicated staff to address the legal operations, we will also be dealing with the illegal.”