Be Sure to Vote on Tuesday November 8th

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Three tax measures will be before Watsonville voters on November 8: changes to existing Utility User and Transient Occupancy Taxes and a new Cannabis Tax.

The Utility Use Tax reduces the tax on telecommunications and video from 6% to 5.5%, adds wireless updating the current Utility User Tax so that all taxpayers are treated the same regardless of which technology they use. The current tax was adopted in 1989 (almost 30 years ago). A lot has changed since then. The tax on energy is unchanged except low income persons are exempt. The Utility User Tax helps pay for police, fire protection, youth programs, parks and recreation.

A second tax change measure is a one percent increase in the City’s Transient Occupancy (Hotel) Tax. This measure will increase the Watsonville hotel room tax from ten percent to eleven percent to match the tax paid in the County and nearby cities. Again, the tax helps pay for police, fire protection, youth programs, parks and recreation.

The third tax measure is a tax on cannabis cultivation businesses. The City Council adopted an ordinance on June 19th to place this cannabis business tax before the voters. This measure will impose a tax on not more than 10% on gross receipts from cannabis sales, 2.5% tax on gross receipts from the sale of cannabis products, and $20 per square foot tax on cannabis cultivation areas. The proposed tax will help offset the impact that cannabis business is expected to have on the community, and pay the cost to manage permits and enforce the medical cannabis ordinance.

Go to the City’s website for information on all these three measures. Also check out the County Election Website


This entry was posted on Monday, August 1st, 2016 at 8:14 am and is filed under City Manager, City of Watsonville, Homepage News, Mayor . You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.