Survey says: Two thirds of Visalians support cannabis sales with 10% tax

The Visalia City Council is expected to approve a plan to put a proposed measure to tax cannabis business in Visalia on the November ballot this week. The results of a March survey indicated that 2/3 of Visalians would approve of retail sales of cannabis in the city limits with a 10% tax to fund city services.

The consultant firm FM3 Research concluded that a proposed measure to tax cannabis businesses in Visalia"appears viable" for November 2024. The measure receives broad and consistent support among the electorate, regardless of whether or not a state mandate is mentioned in the ballot language, says the researcher group.

FM3 Research was hired to conduct a public opinion survey of Visalia registered voters to assess voter attitude towards a potential measure to tax cannabis businesses, if such businesses were allowed to operate within Visalia's jurisdiction.

Selling marijuana in a retail store is not allowed in Visalia, although a state law allows delivery as of 2024.  A city staff report says Senate Bill (SB) 1186, the "Medicinal Cannabis Patients' Right of Access Act" was signed into law in late 2022. This state law, which became effective on Jan. 1, 2024, prohibits local agencies from enforcing any local regulations that prohibit the retail sale by delivery of medicinal cannabis. After this date, "delivery only" (i.e., delivery of medicinal cannabis) businesses can be permitted, subject to reasonable zoning regulations for public health and safety, within the city of Visalia. This means that warehouse-based businesses could legally operate in the city of Visalia as long as they sold medicinal cannabis via delivery only.

Simple majority referendum

The Visalia survey showed many people are uncertain about whether it is legal or not to sell cannabis in Visalia, but majorities support allowing cannabis business activity. Additionally, nearly three-quarters perceive a need for funding for city services. In that context, nearly two-thirds support what could be the proposed simple majority measure initially.Even if the city referendum  in November indicates a large majority would support selling marijuana in Visalia, the council has the final word over whether to allow retail sales, likely in 2 to 3 outlets in town. City staff has received numerous inquiries from business operators seeking to operate storefront retail cannabis businesses, which are not permitted to operate in Visalia under the current municipal code regulations.

The wording of the ballot measure only mentions allowing marijuana businesses, leaving it up to the council on what types of businesses will be allowed.

The measure is expected to ask:

S hall the measure to fund, for general governmental uses, services such as:maintaining emergency response times; supporting youth programs; helping attract businesses; cleaning public areas; addressing homelessness; by taxing cannabis businesses’ gross receipts not exceeding 10% on retail, delivery, manufacturing/testing raising approximately $1,000,000 annually, requiring spending disclosures, and which would only be levied if state law imposes mandates or the city approves an ordinance allowing such businesses, lasting until ended by voters, be adopted?

Other conclusions from the survey: • Voters place the greatest priority on addressing homelessness, maintaining emergency response times, keeping public areas safe and clean, and preventing property crime.• Support fluctuates with messaging, but remains well-above the 50% threshold for passage throughout the survey.

The question of pot sales has surfaced a number of times at city council meetings over the years and has gained traction in the past several years although that last discussion, council majority was cool to the retail sales idea.

Other nearby communities, including Woodlake Farmersville, Hanford and Lemoore, allow retail sales with some allowing manufacturing and growing of marijuana with several reporting they have enjoyed tax revenues of over $1 million a year from the special sales tax.

All cities depend on sales tax revenue to back their general fund.

Some here are worried that the lower price of pot by weight across the state will mean less  tax revenue than anticipated and that expanding the store count in Tulare County could mean less for each community. Other critics argue that smoking marijuana is problematic, and should not be encouraged even though it is legal in California.Nationwide, support is building to legalize marijuana. Recently, President Biden announced he backed the idea.Gallup, in a survey released in November, said public support for legalization hit a record 70% "after holding steady at 68%" for the three previous years. The younger you are, the more likely you support it. The survey found 79% support from people ages 18-34, 71% for respondents ages 35-54, and 64% for those 55 or older.If retail sales are approved, the council will likely restrict their location away from homes and  schools similar to restricted zoning for bars.

One district that has been discussed, would be to allow a restricted number of retail stores in the microbrew area east of Santa Fe in Downtown.

This article originally appeared on Salinas Californian: Survey says: Two thirds of Visalians support cannabis sales with 10% tax