SUBJECT:
Title
Review of Draft Ballot Language for the Imposition of a Marijuana Excise Tax
Body
DEPARTMENT: Economic Development
Department
PRESENTER(S): Stephanie Pitts-Noggle, Economic Development Manager
Amy Teetzel, Director of Administrative Operations
TIME ESTIMATE: 30 minutes
only required for non-consent items
FISCAL SUMMARY: N/A
POLICY ISSUES:
Determine if the ballot language laying out the imposition of a 5% excise tax on the sale of retail marijuana, and the suggested use for that tax revenue, is suitable for inclusion on the November 2024 ballot.
STAFF RECOMMENDATION:
Recommendation
The proposed ballot language has very strict guidelines based on TABOR requirements. Staff recommends including a provision for imposing an excise tax at the rate of 5% and adding those revenues to the General Fund for the Council to determine which most pressing priorities need the funds at any given time.
End
SUMMARY AND BACKGROUND OF SUBJECT MATTER:
Since 2012, the Town of Erie has had a moratorium in place banning the sale of retail marijuana within the Town’s jurisdiction. The Town Council (formerly the Board of Trustees) has heard updates from Town staff on this matter in 2016, twice in 2021, and, most recently, in December 2023. The latter presentations included information in response to the 2021 and 2023 Community Survey results in which the majority of Erie resident respondents said they were in favor of overturning the moratorium if the Town adopted robust zoning requirements and an excise tax on any marijuana sales.
Town staff have been working on the steps to facilitate the Council and voters to vote whether to impose an excise tax on the sale of marijuana, thus effectively lifting the moratorium. The steps needed to lift the moratorium include the adoption of ballot language for a question on the November 2024 ballot, and the approval of an ordinance laying out the rules and regulations for the sale of marijuana that would be implemented if the ballot measure passes. This is a first review of the proposed ballot language and final language will be brought before the Council again on July 23 for final approval.
Town staff worked collaboratively to establish proposed zoning regulations based on accepted best practices, and by reviewing multiple neighboring municipalities’ approaches to zoning for similar retailers. Some of the best practices in regulations include restricting marijuana store sizes to no more than 5,000 square feet, in addition to requiring that no store be within 1,000 feet of any school activity, 250 feet of any residential zoning, and no less than 1,000 feet from any other retail marijuana store. Multiple other provisions are included in the proposed ordinance, which the Planning Commission will consider in July and then be presented for Council consideration. If approved, the ordinance lifting the moratorium and imposing the new zoning regulations would only go into effect if the ballot item for excise taxes is approved by the voters in November, effective January 1, 2025.
Licensing requirements for any marijuana businesses adhere closely to what is expected for liquor licensing, with the Municipal Court acting as the Local Licensing Authority, and applications and renewals being processed through the Town Clerk’s office. There are some key differences, however, notably that the applicant must go through the State’s application process first, then file an application with the local licensing authority.
Additional information is included in the Staff Presentation, and will be discussed by Town staff, at the July 9 Town Council meeting.
COUNCIL PRIORITY(S) ADDRESSED:
ü Prosperous Economy
ü Fiscally Responsible
ATTACHMENT(S):
1. Draft Resolution
2. Staff Presentation