Sand City To Propose Retail Cannabis Ordinances

The results are in, and it appears that the majority of residents of Sand City, Arizona approve permitting commercial cannabis operations within the city limits.

Since December, the City Council has been debating its options for cannabis operations in the city, including drafting a plan for community participation. If the results show widespread support, the city will move forward with the plan.

“In the next couple of months, we will bring a retail-only law to the council for consideration,” said Sand City City Manager Aaron Blair.

According to comments from resident mailings and workshops, residents made up 65 percent of community survey respondents, 22 percent of business owners, and 13 percent of others. According to the data, residents and others support permitting commercial cannabis enterprises in Sand City while business owners are split 50/50. The city’s cannabis survey received 54 replies, with the majority of respondents favoring retail cannabis, including those who attended the workshops.

The council should give direction on legalizing commercial cannabis operations in the city, according to city staff.

Retail, manufacturing, delivery, cultivation, testing, locations, several permits, and a selection procedure are among the aspects of cannabis activities that the city council will review.

Business Revenues Affected by the New Decree

According to the staff report, the costs of study, discussion, implementation, and management of cannabis enterprises will require allocating staff resources that can be recovered through regulatory fees and taxes. As a result, cannabis firms are projected to generate additional revenue in fees, sales tax, and business licensing tax.

According to the city’s sales tax consultant, even without a separate municipal tax, a single non-medical cannabis retail store could earn $200,000 in sales tax income a year.

However, revenue is affected by factors such as shop location and market saturation. A 15% state excise tax will be provided for every cannabis purchase at a retail store, and an excise tax on cannabis cultivation. The city may additionally levy a separate non-medical cannabis sales and usage tax. With voter approval, the city could also impose a local sales tax.

According to Blair, there would most likely be a small number of operations due to distance restrictions. For example, according to the state, cannabis retail businesses are forbidden within a 600-foot buffer zone around schools and childcare facilities.

Sand City Will Reconsider Cannabis Creativities

At this moment, Sand City will only consider retail cannabis enterprises, and the city council has requested more information on other cannabis-related activities.

The Monterey Peninsula market is pretty saturated with cannabis storefront sellers, according to the city’s consultant. The first dispensary opened in Del Rey Oaks in 2015, with Seaside, Marina, and unincorporated Carmel joined the mix.

Blair stated that the city has consulted with other nearby towns to learn about their experiences and ordinances.

According to Blair, “for the most part, there were no serious difficulties associated with cannabis retail stores.”

Following the city council’s direction on commercial cannabis enterprises, city staff collaborates with the city attorney to draft an ordinance that will likely take many months to complete.

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