This fall, Arroyo Grande residents will be voting on whether to allow city leaders to impose a tax on cannabis businesses.

Annette Dellemonico, an Arroyo Grande resident, thinks it’s for the best to let voters decide on the tax.

“I think it’s being considered to be sold as basically a boon for tax revenue,” Dellemonico said. “Surely, the city can use the money.”

Arroyo Grande is one of only two cities in San Luis Obispo County without a cannabis tax. It also doesn’t have any cannabis businesses currently located there. If approved, Measure C will impose a 10% tax on any cannabis business operating in the city, whether that’s delivery or a brick-and-mortar shop.

All of the money from this tax will go directly to the city’s general fund to help pay for city services and programs.

Arroyo Grande City Manager Matt Downing said it could generate $500,000 each year.

“It’s a very niche market,” Downing said. “It’s a general tax, but it’s not necessarily felt by the general public at large. It’s only by those who purchase the cannabis products.”

If voters approve the measure, Downing said there will be more steps before a cannabis store can open in the city.

“This is one of those things where even if the council at a future date decides not to allow retail cannabis in the city, we still can generate tax revenue off of deliveries that are made from purchases outside of the city, but then delivered inside the city,” he explained.

Downing said, based on recent community meetings, the city could be ready for this tax. Dellemonico doesn’t think so, but is glad the decision is ultimately in the community’s hands

“I really, actually think that’s the best,” Dellemonico said. “Then the community will get what they want.”