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Phoenix City Council kills medical marijuana tax

Jessica Boehm, Arizona Republic Published 7:46 p.m. MT Oct. 2, 2018 | Updated 7:24 a.m. MT Oct. 3, 2018

The Phoenix City Council voted unanimously to kill a tax proposal that could have cost medical marijuana dispensaries millions of dollars each year.

After backlash from the medical marijuana industry and transparency concerns voiced by council members, Mayor Thelda Williams was forced to back down on the idea.

The tax plan would have raised $40 million to $50 million per year for the city's police and fire departments by taxing medical marijuana dispensaries and cultivation sites by the size of the facilities.

Some marijuana businesses would have been on the hook for more than $1 million under the tax model.

The tax idea came from the Professional Fire Fighters of Arizona, the statewide union, which paid a law firm to craft the proposal.

Bryan Jeffries, the mayor's chief of staff and president of the firefighters union, said the union had been studying a medical-marijuana tax for about a year because it is concerned about the status of public safety in Phoenix. He presented the idea to Williams when she took over as interim mayor at the end of May.

The proposal caught dispensary owners, medical-marijuana patients and some council members by surprise when it appeared on Tuesday's council agenda, which posted online Thursday evening.

Typically, a policy proposal of this magnitude would go to a council subcommittee first, or come before the full council to get approval to research the idea.

But Tuesday's council meeting was the first time the topic was posted for discussion at a public meeting. The vote was to begin a 60-day notice process on the tax.

The industry called the tactic "an ambush."

Dispensary owners and medical-marijuana patients mobilized and called on the council to kill the proposal. They packed the council chambers, wearing stickers that read "no new taxes" and "no tax on medicine."

Councilwoman Debra Stark initially suggested a 30-day continuance so the council could meet with industry representatives before it made any decisions. The suggestion drew a chorus of boos from the testy audience.

Joe DeMenna, executive director of the Arizona Dispensary Association, told the council that the industry was willing to meet with the council, but not with the threat of a 30-day time frame.

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Councilman Sal DiCiccio instead suggested the council kill the proposal and start from scratch with transparent conversations with dispensary owners and medical marijuana patients. He criticized city staff and the mayor for the secretiveness surrounding the proposal.

J.P. Holyoak, co-founder of Arizona Natural Selections, told the council that his business would have to pay $2.9 million if the tax proposal passed.

"I cannot afford it. I will close my doors," Holyoak said. "This is a job killer. But, beyond being just a job killer, we provide medicine to thousands and thousands of people including my daughter Reese."

Reese suffers from a rare genetic condition. Holyoak pushed his daughter in a stroller up to the council members.

"See the face of who you're going after," he said.

After Holyoak's speech and testimony from another parent, the council voted unanimously to kill the proposal.

http://www.fox10phoenix.com/news/arizona-news/phoenix-city-council-meets-to-discuss-tax-on-marijuana-dispensaries

Phoenix City Council nips marijuana tax in the bud

By: Matt Rodewald

POSTED: OCT 02 2018 03:07PM MST

VIDEO POSTED: OCT 02 2018 09:50PM MST

UPDATED: OCT 02 2018 09:51PM MST

PHOENIX (KSAZ) -- Phoenix City Council met Tuesday afternoon to discuss a proposal to boost public safety funding.

One idea would tax medical marijuana dispensaries to pay for more police and fire personnel. Ultimately, FOX 10's Matt Rodewald reported that the proposal was killed.

"Why the public including the council members were kept in the dark from day one on this thing," said Councilmember Sal DiCiccio. The council represents District 6, which covers Ahwatukee and parts of North Central Phoenix

The full dysfunction of Phoenix City Hall was on full display for all to see Tuesday afternoon, as councilmembers challenged the transparency of the quick-to-the-floor marijuana dispensary tax. DiCiccio, who made a rare in-person appearance at the council chambers, was lectured by a defensive mayor Thelda Williams.

"Because of your attitude, you make it difficult to work up here," said Williams. "I have people coming up and asking for a rule of conduct for the council because it's adversarial, and I don't want it to be adversarial. Would you not interrupt me? Stop it! Right now!"

The bickering stems from Ed Zuercher ordering staff to work on the tax proposal over the weekend. The frustration in the room came from medical marijuana supporters, who wanted a seat at the table.

"It brought us out here today. Honestly, to know that something could have happened this quickly without a lot of buy in and really imposed on our industry on our business without us having any say so in it at all, that was very upsetting," said Robert Smith.

With the bill dead, the process will start all over.

"I was pleasantly surprised by the end result, going in I think a lot of us showed up and were prepared for a discussion that did not unfold the way it did," said Yoli Worth.