ORDER-2018-208 : That the City of Melrose accept Mass General Laws Chapter 64N, Section 3 to impose an excise on the retail sales of marijuana for adult use at the rate of three (3) percent.

Transcript (~12 min @ 5:18)

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▶ 5:13 Jennifer L. Lemmerman: undergo so thank you any further discussion we have a motion to place this order on file made and seconded all in favor all right any opposed we will make that recommendation to the full board the next order on our agenda this

▶ 5:24 Jennifer L. Lemmerman: evening is order 2018-208 that the city of Melrose accept mass general laws Chapter 64 and Section 3 to impose an excise tax on the retail sales of marijuana for adult use at the rate of 3%. This order is sponsored by Ward 3

▶ 5:44 Francis X. Wright Jr.: Alderman Frank Wright. Alderman Wright. Thank you Madam Chair. The thought process that's behind putting this forward now is that while I did not support the

▶ 5:59 Francis X. Wright Jr.: being recreational marijuana in Massachusetts it passed so we honor the vote of the residents of the state of Massachusetts and we move forward under state law in any community that has a medical marijuana facility that marijuana facility that medical marijuana facility will have priority in receiving a recreational marijuana facility which in my mind is to a great benefit to Melrose because I personally think that if we're going to have one and we and by law we have to have at least one unless the same voters that voted for it turn around and vote against it that our medical marijuana facility will be out on route 99 which quite honestly a lot of people don't realize is Melrose because it's a very small section of route 99 so what we will need to do is

▶ 7:07 Francis X. Wright Jr.: somewhere between now and the end of the year when the moratorium expires we would need to pass zoning that would dedicate some area of the city and hopefully it will be route 99 as the recreational marijuana area for the city of Melrose all that said this is one small part of this process which is municipalities are allowed to have a local excise tax on the sale of recreational marijuana in my mind I know other communities are taking advantage of this I believe we should too in a community now that is challenged when it comes to revenue I think we need to take advantage of every opportunity and and this is an opportunity to collect revenue from what I anticipate will be a number of people who take advantage of the opportunity to buy marijuana in Melrose but may not reside in Melrose so I think though it's important for us to take advantage of this opportunity it's also important to realize that we have to put dor on notice no less than a month before we want it to go into effect and it can only go into effect into effect quarterly so it would be July 1 September one I'm sorry July 1 October 1 January 1 etc so if we pass it now we won't be caught short later on and missing a full quarter of collecting revenue it doesn't commit us to anything if something changes between now and then this will have no impact it doesn't bind us it doesn't require us to do anything else but when and if the sale of recreational marijuana occurs in this state that or in this city I should say that we will be able to collect a 3% local excise on that sale so that's what's behind this other communities are getting out in front of it and I thought it would be wise considering our revenue challenges that we get out in front of it as well thank you thank you thank you madam

▶ 9:33 Michael P. Zwirko: chair I want to just first thank alderman Wright for bringing this forward and also I read his very well authored op-ed recently in the weekly publication so thank you for getting ahead of this the as of June 26 the Massachusetts Municipal Association put out somewhat of like a bulletin and they stated that 66 towns at the time have implemented such a excise tax on the sale of retail marijuana I have also spoken with our city planner Denise Gaffey about what's coming down the pike in terms of the next steps for us as a municipality dealing with recreational marijuana and there has been some turnover in her office and that position has recently been filled and this late summer and fall they will be working towards zoning amendments that will be forthcoming in my correspondence to her that's what she indicated so I think that Alderman Wright correct that this is the right time to take up this issue or at least begin the discussion so we don't miss anything as the moratorium here is set to expire at the end of this calendar year and I did just have one question or I guess comment to think of with this I noticed that the language is at the rate of 3% but I looked at the actual law itself the statute and it says up to 3% I don't know if we want to marry that language to give the city a little bit of flexibility however I mean my position would be is go all the way to three but I just didn't know if that was if there was any intent behind that or not but I mean so that that's my question but I am supportive of this

▶ 11:23 Francis X. Wright Jr.: effort thank you thank you madam chair through you to all the Missouri code this language is language that the DOR provides to municipalities as the language it recommends use be used when adopting this statute thank you just a

▶ 11:41 Robert A. Boisselle: clarification on the term retail sales does this also include food products

▶ 11:58 Francis X. Wright Jr.: contain marijuana through the chair yes yes well through the chair any sale of marijuana no matter in what form will only be allowed to be take place in what will be known as an adult marijuana facility which will be recreational marijuana those facilities will sell liquids with marijuana in it gummy bears with marijuana in it cookies and brownies and as well as marijuana you can smoke all of that sold within that facility will be subject to the excise tax okay thank you thank

▶ 12:31 Monica C. Medeiros: you very much thank you uh thank you yes i you know i'm not one to love the implementation of of new taxes however this is definitely a new use in our community and although

▶ 12:45 Monica C. Medeiros: I think it's important to say that we have zoned and clarify right now we have zoned for a medical marijuana facility which we expect I do expect that there

▶ 12:57 Monica C. Medeiros: will be one coming soon and as Alderman Wright pointed out that those facilities will have priority in terms of licensing for recreational use we do still in fact have a moratorium in place until the end of this calendar year in terms of in

▶ 13:19 Monica C. Medeiros: terms of recreational marijuana use and so certainly and I've spoken to miss Gaffey as well and planning and you know certainly this is something that we anticipate that they will pick up in the fall and it's something that will then come before the Board of Aldermen about you know where we wish to to zone for recreational use which could actually be a different location but you know likely

▶ 13:50 Monica C. Medeiros: it might not be but that's something that will be coming before us soon and I do think it's important to sort of get out ahead of this and I would recommend that if we do pass this that we send notice for this to begin October 1st so even if we don't have a facility in place at that time you know we are going

▶ 14:16 Monica C. Medeiros: to be faced with increased increased responsibilities as a result of this state law change in terms of more responsibilities for the police possibly more responsibility for our health department as a result of this law and there will be you know increased cost with those responsibilities and um i do think in this case it makes sense to implement this local option tax at the three percent rate thank you thank you

▶ 14:50 Jennifer L. Lemmerman: any other discussion do we have a motion a motion to approve we have a motion to recommend for passage made by alderman liberate garabedian second seconded by alderman wright any further

▶ 14:58 Shawn M. MacMaster: discussion thank you madam chair I appreciate Alderman Wright efforts to focus on additional ways to garner revenue in these trying fiscal times tonight I'm not inclined to support this and I'm just concerned about moving forward on this without having an opportunity to hear from the city solicitor I can't help but wonder if we face any liability or criminal exposure as a municipality for taxing an entity that is still illegal under federal law so I'd be more comfortable personally having the city solicitor appear before us to ask that question before proceeding tonight so I'm not inclined to to support it tonight but again I appreciate Alderman Wright order and his efforts on this matter Thank You madam chair

▶ 15:53 Francis X. Wright Jr.: To you, Madam Chair, to Alderman McMaster, we as a city would not be taxing the facility. The state would be taxing it, collecting it, and then would return that 3% to the city. It's been passed by the legislature. It's been passed in such a way that it's a local option for each municipality to decide whether or not they would like the state to collect that money much like it does the food and drink tax that restaurants collect that money gets returned to municipalities uh quarterly as

▶ 16:36 Jennifer L. Lemmerman: well so thank you thank you any further discussion of a motion that's been made and seconded to recommend for passage to the full board all in favor aye aye any opposed opposed the motion The motion passes to be recommended to the full board.

▶ 16:47 Speaker 1: Motion to adjourn, Madam Chair.

▶ 16:49 Jennifer L. Lemmerman: Motion to adjourn made by Alderman Mortimer. Second. Seconded by Alderman Forbes. All in favor? Aye. Opposed? We're now adjourned.