This is in response to a recent letter that suggested a marijuana tax in the City of Turlock would solve all of our fiscal issues. The numbers do not support this. For the entire state of California, the estimated state revenues from the marijuana tax are $175 million and actual revenues are below that estimate. The state tax rate is 7.25 percent. Turlock’s prorated share of this would be .00.2 percent or $350,000. This money goes to the state. Modesto’s tax rate will be a maximum of 10 percent on top of the state tax. A similar rate in Turlock would yield about $485,000 per year. This seems like a large sum but would only be 1.3 percent of the current general fund expenditures of $38 million. It would pay for adding at most three police officers or cover the unbudgeted legal fees in the current fiscal year.
This does not even take in to account the additional policing issues that would arise from the permitting marijuana sales in the city.
— Ron Hillberg