The City of Stockton held a significant meeting on May 16, 2025, focusing on the proposed increase of the business license tax for marijuana dispensaries. The discussion centered around the implications of this tax increase, which is set to rise from $25 to a range between $35 and $50, as mandated by Measure Q, a recent voter-approved initiative.
Council members expressed concerns about the fairness of taxing similar businesses at different rates. They emphasized that taxation should be equitable, ensuring that businesses in similar situations are taxed uniformly. The conversation highlighted the importance of aligning the tax structure with the desires of the constituents, as 63% of voters supported the increase.
The potential revenue generated from this tax increase was a key point of discussion. Estimates suggest that a $50 tax rate could yield approximately $1 million annually, while a $35 rate might generate around $606,000. Council members noted the uncertainty surrounding these figures, given the limited operational history of the dispensaries in Stockton.
Additionally, the meeting included public comments addressing broader community concerns. Residents raised issues about the ongoing costs associated with city services, such as the lighting at the Fair Oaks Library, which has been a point of contention due to its continuous operation despite the building being closed. There were also calls for the city to consider earmarking tax revenues for homelessness initiatives, reflecting the community's desire for transparency and accountability in how funds are utilized.
The meeting concluded without a definitive motion from the council regarding the tax increase, but the discussions underscored the need for further analysis and community engagement as the city navigates the complexities of marijuana taxation and its impact on local revenue and services.