Citrus Heights seeks input from residents on cannabis dispensaries, tax

By Phillip Pesola–
The Citrus Heights City Council is seeking feedback from residents as it moves forward with consideration of allowing and taxing cannabis dispensaries within the city.

During a Feb. 8 City Council meeting, Casey Kempenaar, the city’s Community Development Director, gave a presentation outlining potential changes to the city’s longstanding cannabis ban. The discussion explored a possible path forward should the city decide to permit cannabis sales.

Kempenaar detailed the historical backdrop of cannabis regulation, noting Propositions 215 and 64, which respectively legalized medicinal and recreational cannabis in the state. As allowed by law, the city has maintained a ban on cannabis dispensaries and outdoor growing of cannabis, while regulating indoor growing of a limited number of plants for medical purposes.

Nearby cities along the I-80 corridor already allow and tax dispensaries, with tax rates varying from as low as 4% in Sacramento to as high as 15% in Dixon, according to Kempenaar’s presentation. Local discretion remains over licensing, offering the city a measure of control.

Two potential revenue options for Citrus Heights were presented, including a proposal going to local voters on whether to approve a cannabis tax on gross receipts, or the allowance of a more narrow developmental agreement with a community benefits fund. Kempenaar specified that a cannabis tax would require a four-fifths council vote to proceed to the ballot, whereas a development agreement could expedite financial benefits without waiting for a tax measure to pass.

The presentation stressed the importance of community engagement through workshops and online tools such as FlashVote, with an outlined timeline for implementation allowing for possible implementing of the tax as early as January 2025, if a tax measure were put on the ballot and approved by local voters in November.

Following the presentation, members of the public spoke both in favor of and in opposition to the idea of allowing dispensaries in the city, including former council members, residents, and business owners from nearby cities.

“People’s lives have been changed by this, both for the medical purposes, but also the opportunity to create new entrepreneur opportunities for their family and the local community as well,” said Mark Mabutas, owner of Metro Cannabis, a dispensary located in Sacramento.

However, former councilmember Albert Fox argued that the potential revenue for the city was overstated.

“The recent claim that (the tax) is going to be a sufficient resource for road repair funding is highly questionable, at best, and is not supported by the statewide reports of dispensary closures, failures to pay, or delinquent payments of sales and excise tax revenues,” Fox told the council during public comment.

Former councilmember Jeannie Bruins also voiced her opposition, recalling her part in prohibiting cannabis dispensaries in Citrus Heights when recreational use was legalized in the state.

“I believe that the reasons that existed then are even stronger today,” said Bruins. “And if you’ll put it out to the community and ask for their input and really listen to what they say, I think the direction will be very clear that this is not something we want in Citrus Heights.”

Sean Kiernan, CEO of Weed for Warriors, a disabled veterans group, spoke in favor of allowing cannabis as a safer alternative to harder, more dangerous drugs.

“We have an epidemic of suicide and overdose, and we need a safer substitute and an alternative,” Kiernan told the council. “And millions of our veterans, and millions of our first responders, and people who are around us every day are safely choosing cannabis.”

After hearing public comment from more than a dozen speakers, the council discussed the matter, with Councilmember Tim Schaefer supporting a move forward with the process, along with support from a majority of other council members.

“I see this as an opportunity that we should look at and analyze it and make an informed decision,” said Schaefer. “If we’re going to choose to make an informed decision, we need to have the data. We need to explore the data and see what it looks like.”

Councilmember Porsche Middleton said “it’s definitely worth looking into,” and noted hearing “powerful stories about how cannabis has changed the lives of individuals for the better.”

Councilmember MariJane Lopez-Taff opposed the idea, describing herself as a “child of a drug addict who only did marijuana.” She also said the topic of taxing and allowing cannabis dispensaries has been talked about before and should still be opposed in Citrus Heights.

“We’ve talked about this over the years, and it’s been struck down, spoken against, moved with regulation and restriction over those years, and I still agree with those things,” said Lopez-Taff.

Mayor Bret Daniels spoke in favor of further exploration, clarifying with staff that dispensaries could be barred from being near schools and other facilities. He also cautioned against more taxation, and noted that the city is not in desperate need of more revenue.

“My parents died in their sixties, of cancer, and I would have gone and got them anything, anything to relieve their pain and suffering… So I’m a firm believer in that there are medicinal needs for marijuana,” said Daniels. “On the flip side, I’m very much against recreational marijuana… but, I’m also a partaker of an adult beverage, and who am I to say: that’s okay, but you can’t decide to relax with your chosen substance?”

Vice Mayor Jayna Karpinski-Costa said she supported moving forward with putting “something” on the ballot for voters to decide, noting that “the community has changed.” She also said she had visited a dispensary in Davis along with the city manager and was “quite impressed” with its operation and described it like visiting any other retail store.

Although no formal vote was taken during the study session, a majority of the council gave consensus to city staff to move forward with a recommended timeline, starting with the process of further community engagement on the issue. Depending on community feedback received by April, a draft timeline presented during the meeting indicated potential consideration in May-June for an ordinance allowing dispensaries, with consideration of a ballot measure for taxing cannabis being considered by the council in July, and then potentially going before voters in November.

Residents wishing to have their opinion heard on this matter can sign up for FlashVote in order to participate in any future polls on that platform. The City Council can also be contacted directly as a whole, by emailing citycouncil@citrusheights.net.

Want to share your thoughts on cannabis regulation and taxation in Citrus Heights? The Sentinel welcomes guest opinions of any viewpoint. To submit a letter to the editor or opinion column for publication, click here.