LEGALIZATION
Monterey County NORML Fuzzy Math Example v 2.2.docx
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Formula to Calculate Tax Revenue for Monterey County –
Wholesale from Cultivator → Distributor
100 facilities x 22,000 square feet per facility = 2.2M sq ft max total canopy area.
Estimated production of 20 grams per sq ft/cycle
2.2M x 20 grams per sq foot canopy = 44 Million grams of production per cycle
That’s 44,000 KG or approximately 98,214 lbs of production per cycle.
Estimated wholesale cost is between $1,500 to $3,200 per lbs.
Estimated value of wholesale is between $147,321,428.57 and $314,285,714.27 per cycle.
Assumption of 3 cycles per year = between $441,964,285.71 and $942,857,142.81 Wholesale /yr
A Proposed 5% tax on wholesale transactions would generate between $22,098,214.28 and $47,142,857.14 /yr
Any taxation that goes beyond that will price out the cost of doing business in this county.
To put that into perspective. The County of Monterey collects $128.4M from property taxes, $20.3M from hotel taxes, and $3.6M from the Tobacco Settlement. Simply put commercial cannabis businesses could become the single largest revenue contributor to Monterey County next to property taxes.
The sensible thing would be to take that money and instead of dumping it into the general fund you automatically allocate a 3rd of it for every k-12 student registered in Monterey County, another 3rd to every single registered voter in the county in the form of a tax rebate(this is how you actually get people to vote), and the last 3rd should go to roads and infrastructure.
NOTE: Our board and general members met last week to pregame before the first stakeholders meeting and came up with this. Granted it's not perfect and there are tons of variables to take into account but we hope you get the general idea. We are also breaking down the math for what the 15 M2 Extraction Facilities and the 15 Dispensaries would generate for the county. Please click on the google drive link above and contribute your own two cents. ;)
Slack Channel: #legalization
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