Measure X: Rio Dell’s Cannabis Taxation Measure

This is a press release from the City of Rio Dell:

City of Rio Dell Blur

On November 7, 2017, voters in Rio Dell will decide the fate of Measure X, a cannabis taxation measure aimed at generating needed revenue in order to pay for streets, infrastructure, public safety and other services for the citizens of Rio Dell. The tax is applied only to commercial cannabis operators and not the general public. The measure would allow the city to collect up to 10% of gross receipts from these businesses and the starting rate will be 2%. Cultivation may be taxed using a separate methodology involving a square footage assessment of up to $5.00 per square foot, but the starting rate will be $2.00 per square foot. Commercial cannabis operators will be required to pay all other taxes, including payroll and property taxes. Estimates of the revenue potential of this measure are $980,000 annually, subject to numerous variables that may increase or decrease the actual receipts.

Proceeds from this tax may be used for any public purpose but the City Council has prioritized streets, other infrastructure and police services. The tax proceeds and their uses would be subject to annual independent audits which would become part of the City’s public record.

Measure X follows on the heels of Measure T which appeared before the voters of Rio Dell last year on November 8, 2016. Measure T was a non‐binding advisory measure that presented the following question: “Should the City of Rio  Dell, by the necessary and appropriate action, permit commercial cannabis business activity, including cannabis cultivation, testing, processing and sales, within the area of the City that is located to the north of the Eel River and commonly referred to as the Sawmill Annexation Area if that activity is subject to local taxation?” The voters of Rio Dell responded to this question with 53.41% saying yes.

Measure X is the culmination of over two years of community effort to bring this economic development opportunity to the City. The City Council spent much of 2016 hammering out a land use ordinance that would allow commercial cannabis operations at the former Eel River Sawmills facility, now renamed the Humboldt – Rio Dell Business Park. Strategically located in the center of Humboldt County along the US‐101, the Humboldt ‐ Rio Dell Business Park is situated to be a regional center for value‐added processing in the newly legal cannabis industry. The Business Park is located on prime industrial lands that are separate and distinct from Rio Dell’s residential neighborhoods. The Business Park has sat largely idle since the last logs were milled around 2005 and the proposed use of the area as a regional manufacturing center for cannabis does not compete with or displace other pre‐existing uses. As of October 2017, 50,000 square feet of new development has been approved by the Planning Commission, potentially creating over 100 living wage jobs.

“What has already been approved by the Planning Commission represents the largest economic development projects in the City’s history. And there’s more in the works. This community has been hit hard over the past 30 years of economic takeaways associated with the decline of the timber industry. Measure X represents a unique opportunity to invest in public safety, streets and all of the things that will help make this community successful and sustainable in the long‐ term.” States City Manager Kyle Knopp.


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    • I can tell you why, without asking!!! That all too common ailment these DAZE for everything publicly funded, Lakamunny!!! Ca doesn’t fund education worth a Sh!t!!!

  • none of this is going to materialise, the bottom will drop out of weed and the greedy growers will fuck off back to where they came from. leaving humboldt poor and stupid and having really given nothing to the community. Trinidad has the right idea basically ban growing weed altogether. it’s a flash in the pan.

  • Diesel DRW - Curb Weight 7762 lbs

    I LOVE the idea of heavy taxes on growing weed passed at the local level, with the funds going for roads, cops and general services. This idea is 50 years late, but it could cause a few more people to take their drug dealing to a more appropriate area… Like maybe Oregon, or Mexico…

  • Big money to be had! Weed biz is booming ,record prices and record sales that have never been seen before,lmao

  • If there’s ever been a need to tax and take everything from growers, it’s time now. What needs to happen is act like permits will be issued, take money up front, generate a list of names, but never issue a single permit. Instead, keep the money and start giving tickets to the people on the list. Everytime they try to drive on the roads cite them for doing in excess of 100 miles per hour over the speed limit, cite them for no seat belts, broken tail lights, reckless driving- anything that can be made up.
    We need law enforcement to milk these people for every cent possible, while looking for ways to jail them.

    Marijuana is a terrible drug and all drug users and producers should be put in prison for life.

    Jailing each and every grower is the only way to build healthy, safe communities that children can be raised in.

    Marijuana destroys everything it touches and only a war against this evil plant can Make America Great Again…

    • Conservative Stupidity

      Peabrain prohibitionists at a dime a dozen.

    • Are you on prescription drugs? Some of us cannot afford the cost of prescriptions. Marijuana is not a bad drug. Have you not seen the medical benefits to critically ill people. Not everyone uses it to get high. Some people use it for medicine. Its not the plant thats evil. Its the greed thats evil.

  • Those people that jumped the gun and spent up to 80k to become legitimate are going to be sorry. The bottom is falling out on the wholesale price and now they’re going to get hit from every angle with various vice taxes. Better hope it’s not legalized on a federal level because Uncle Sam will want his 30%.

  • Rio Dell opposed every modest proposal til they decided to make money. Now cannabis is “good”. The hypocrisy is awesome.

    • who is going to be the lender(s) for development on this property contaminated with PCP and is currently an open water board cleanup case? its as if they have not made an informed decision and are jumping the gun.

        • I think “local observer”, mean PCBs.

        • yes PCP – the wood treatment chemical pentachlorophenol that when burned creates dioxins and dibenzofurans. I wonder where the tee-burner(s) were on this property. this is how the extortionist that call themselves baykeepers sued the soil company in Glendale. that property is also contaminated with PCP from the prior lumber company and the soil company did nothing but use the surface of the ground.

      • Funding for this project will be interesting seeing how a bank can’t lend on a cannabis project. This project is going to take some serious money

  • I certainly hope they are going to address the traffic hazard of people trying to get on and off the freeway there.

    • Excellent observation. You’re right.

    • Great, they will make Metropolitan a safety zone lowering speed to 50 mph. RD employees better think about that cuz there will be some pretty pissed off homeowners/locals if crossing traffic there becomes an issue.

  • Conservative Stupidity

    Some idiot came on here and said “weed ain’t legal” in the language of losers. How do you tax an illegal item?

  • *PCB PCP is an Animal Tranquilizer!!!

  • >”PCB” = pentachlorophenol also know as trade name “woodlife” which is a fungicide and the reason why Humboldt Bay is contaminated with Dioxins.”

    It was used as a dip or spray on Douglas-Fir lumber. Keeps the lumber from producing ‘mold’.
    Find any old ‘Doug Fir’ lumber mill and you will probably find some PCB contamination.
    Was banned back in the late 1970’s – 80’s. Likely you won’t find it as a chemical anymore.

    Ground contamination is nasty stuff to get rid of. Sawmills spent lots of money on removing soil and trucking it away. Modern Doug-Fir sawmills have gone to a different chemical.

    If big concentrations are found on the ‘Rio Dell’ site… somebody/somewhere didn’t do the job on cleanup.

    It used to be a cleaning solvent… guys would wash their tools in it.
    Good grease and oil remover… also found in older transformer oil (a-la-PG&E).
    Thieves would steal the old transformers and illegally drain the oil out so they could sell them.

    “Woodlife” is a current brand of lumber preservative. Registered with the EPA.

    Modern treated Lumber is not equal to PCB’s.
    Very different set of chemicals.

    • the PCP was not a typo, it seems Dan added some idiocrasy. PCBs are not generally associated with mill sites unless there was a electrical transformer explosion.

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