This is why the illegal sale of marijuana is growing—government has a policy to make it too expensive to buy “legal” pot”. Sadly, it is easy to do—just make the fees and taxes so high on legal operations, that potheads will buy from the gangster on the street corner—for less.’
““City fees need to be added to the fee schedule for the recovery of costs associated with cannabis permits and any other cannabis-related fees,” Dilg said. “This agenda item establishes by resolution the creation of three new fees. Included in the resolution is a site plan evaluation fee, a renewal application fee and a late application fee.”
The fees are as follows:
Renewal application fee: $25,200
Site plan evaluation: $500
Late application fee: $100
This does not include the mandated security personnel and systems, cost of rent, utilities, etc. You can buy the same quality pot in your dorm as you can at a government approved store—for about half the price. They may be potheads, but like everybody else, they do not want to be overcharged for a product or service.
Chico adds more than $25,000 in additional fees to cannabis businesses
By JAKE HUTCHISON, Enterprise-Record, 10/6/22
CHICO — Those looking to open cannabis dispensaries in Chico will be facing additional fees down the line as the Chico City Council unanimously approved three new charges for recouping staff costs.
Management Analyst Angie Dilg presented the item before the council and explained that the new fees will go toward recovering costs to the city accrued when handling the application process for new businesses.
“City fees need to be added to the fee schedule for the recovery of costs associated with cannabis permits and any other cannabis-related fees,” Dilg said. “This agenda item establishes by resolution the creation of three new fees. Included in the resolution is a site plan evaluation fee, a renewal application fee and a late application fee.”
The fees are as follows:
Renewal application fee: $25,200
Site plan evaluation: $500
Late application fee: $100
A public hearing was held regarding the item, though only two members of the public spoke during the hearing.
James Hutchinson said that while he isn’t fond of cannabis or other substances, he would prefer to see the city wait and see how allowing for dispensaries goes before adding additional fees.
“You have this whole process and you don’t know how it’s going to play out,” Hutchinson said. “It hasn’t happened before. We haven’t had anything like this since prohibition when you start thinking about it. We haven’t had to legalize something that was illegal and suddenly we’re going to do it. We don’t know what’s going to happen. When you start imposing fees without knowing what’s going on, you don’t know the repercussions of it. Why are you doing it? Wait and see. Let it play out a little bit first.”
Councilor Alex Brown asked Dilg what an annual revenue audit is, adding that it was one of the larger expenses listed to the city in conducting regulations on cannabis businesses.
Dilg said the state requires that the businesses be audited to ensure the businesses are paying taxes and handling finances properly.
Brown asked how these fees compare to other municipalities around the state. Dilg said they were comparable.
“In the city of Redding, theirs is $30,000,” Dilg said. “In doing some research and talking to our consultant, this is pretty average.”
Dilg said that the city can look at costs over time and lower the fees if costs aren’t as much as anticipated.
The new fees were passed unanimously.
The Chico City Council mostly meets at 6 p.m. on the first and third Tuesday of the month at 421 Main St. Meetings are free and open to the public.
