Cal.Sup.Ct.;
S234148

The California Supreme Court affirmed a court of appeal decision. The court held that Cal. Const. art. XIII C, §2, which limits the ability of local governments to impose, extend, or increase any general tax, does not apply to taxes imposed by voter initiative.

California Cannabis Coalition, a California nonprofit corporation, sponsored and drafted a proposed medical marijuana initiative petition. The initiative would repeal existing City of Upland code provisions prohibiting medical marijuana dispensaries and would adopt regulations permitting and establishing standards for the operation of medical marijuana dispensaries within the city. The initiative would require any permitted dispensary to pay the city an annual “licensing and inspection fee” of $75,000. The initiative proponents requested that the initiative be considered at a special election. The city found the initiative did not qualify for a special election because the $75,000 licensing and inspection fee qualified as a tax under art. XIII C, §2. Coalition filed a petition for writ of mandate challenging that decision. The trial court denied the petition, finding that the $75,000 fee imposed by the initiative was a tax and, for that reason, the initiative was required to be placed on the next general election ballot.