SOUTH LAKE TAHOE, Calif. – Since the beginning of legalized adult-use sales of cannabis in South Lake Tahoe, it has always been determined to use one-half of its tax revenues to give back to those who are mitigating the effects of cannabis in the community via a grant program.
During its last meeting, the council discussed major changes to the grant program.
There is currently approximately $400,000 in the program from taxes, so the council voted to continue it one more year, with possible changes in the future.
When the first cannabis ordinance was passed in 2018, the Council and partners worked through months of meetings and versions of the ordinance to create one that worked for all sides. Part of that result was ensuring half of the City’s receipts went to support those mitigating the results of having adult-use cannabis sales, mainly those working with children.
This was part of Measure G, which was voted on overwhelmingly by voters in 2022, and supported the City in enacting a gross receipts tax of up to 6 percent on retail, distribution, and manufacturing, and $20/square foot of canopy for marijuana businesses, replacing the previous community benefit fee. Owners of cannabis businesses successfully lobbied the City Council recently to cut that tax in half, reducing the amount available to community non-profits such as Tahoe Alliance for Safe Kids, the Boys and Girls Club, and Vista Rise, among others.
The City would use the other half for services.
The text of Measure G:
“Shall the measure to maintain essential services such as wildfire prevention, safety, snow removal, road repair, youth programs, other general services by converting existing cannabis business fees to a gross receipts tax up to 6% on retail/distribution/manufacturing, $20/square foot of canopy on cultivation, providing approximately $950,000 annually until ended by voters, continuing regulations/limits on cannabis businesses, requiring public spending disclosure, all funds for South Lake Tahoe, be adopted?”
Since being elected, Councilmember Scott Robbins has argued that others should be able to receive grant funds, such as the Al Tahoe Firewise group. He said he wants to eliminate the mitigation requirement for applicants.
Councilmember Heather Horgan said the issues currently being addressed by the grant program are not going away. Her background is in community health, and she understands the needs of a community. She said, since the city’s strategic goals are a moving target, perhaps a committee can complete a needs assessment before going into the grant year to see what is best for the community.
Currently, those applying for the competitive grant must submit an application that addresses at least one of the city’s strategic goals. A panel narrows down the applicant pool based on evaluations, and the city council approves it.
Council voted to implement the cannabis grant program again, approximately $400,000, and for staff to come back with long-term funding approaches to be consistent. They also want a councilmember to be on the grant committee and make that a standing annual assignment.
Over the last four years of the program, $1,666,551 has been issued from cannabis taxes to nonprofits serving the South Lake Tahoe community. The Tahoe Alliance for Safe Kids (TASK) has received the most at $200,000, as 100 percent of what they do goes to programs for kids to reduce access to drugs and alcohol, and spearheading multiple actions in place at local schools. Second highest was Gateway Mountain Center at $148,750, followed by Tahoe Youth and Family Services at $133,169, and Sober Grad Night with $110,000. The Lake Tahoe Boys and Girls Club received money separately from the cannabis grant program.