City of Shasta Lake passes marijuana tax

Nov 6, 2014 8:42 PM

Voters around Shasta County passed "Measure C" -- which taxes the city's two marijuana collectives.
The idea was first brought up at a council meeting in February by Jamie Kerr, owner of the "530 Collective" -- it was her way to thank the city for allowing both collectives to keep their doors open.

"Let's look to the future and get ready, instead of burying out head in the sand."

That's just what "Queen of Dragons" owner Dr. Tammy Brazil had in mind, when Jamie Kerr approached her with the idea of adding a tax on their collectives, to give back to the city.

"We like it that we're part of the effort to build this town...this little town is actually starting to wake up again."

The City of Shasta Lake has no obligation to keep both collectives in business -- not to mention -- they are the only marijuana collectives in Shasta County.

Under the new tax, both collectives would give the city six percent of their gross sales each year, starting in 2015.

When the idea was proposed back in February, customers were concerned the collectives would raise their prices to make up for the additional tax.

"What most people don't understand is it's a tax on us, the collectives's something that we absorb from the top."

"There's a need for additional funding in every area."

City of Shasta Lake finance manager John Jones says the city's general fund for this fiscal year was just under three million dollars.

"The estimated revenue from the new tax could generate anywhere between 20 and 200-thousand dollars."

The additional money would be put into the general fund, but as for how the money will be spent -- that's up to the city council.

"Thank you Shasta Lake for letting us exist. We love you dearly."

Shasta Lake was one of five California cities to put a marijuana tax measure on the ballot for the 2014 November elections.


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