Applied Development Economics | Page 5
for calendar year 2019). The study also found that the illicit market comprised $8.7 billion in annual sales, or roughly three-fourths of the total cannabis market.1 Moving forward, the Arcview/BDS study also projected that through 2024, the legal cannabis market will grow at a compounded annual growth rate (CAGR) of 18.4 percent, and displace a significant portion of the current illicit cannabis sales. By 2024, the study projects that legal cannabis sales will increase to $7.2 billion annually, while illicit sales will decline to $6.4 billion.
According to data from CDTFA, California’s taxable retail cannabis sales totaled $2.1 billion in 2019.
This represents a 62 percent increase from the $1.2 billion in retail cannabis sales in 2018.2 As shown in Table 1, the total number of active cannabis retailers also increased from 824 to 980 retail licensees.3 When also including microbusinesses and delivery services, the number of licensees increased from 1,192 to 1,405 businesses.
TABLE 1: SUMMARY OF CALIFORNIA RETAIL CANNABIS PER CAPITA SALES AND AVERAGE SALES PER RETAILER YEAR
TAXABLE RETAIL
CANNABIS SALES
TAXABLE
CANNABIS
SALES PER
CAPITA
CANNABIS
RETAILERS
(LOW)
CANNABIS
RETAILERS
(HIGH)
TAXABLE
SALES PER
RETAILER
(LOW)
TAXABLE
SALES PER
RETAILER
(HIGH)
2018 $1,274,666,667 $32.01 834 1,192 $1,069,351 $1,528,377 2019 $2,068,666,667 $51.77 980 1,405 $1,472,361 $2,110,884 Source: ADE, Inc.; data from CDTFA, California Department of Finance, and California Bureau of Cannabis Control.
Notes: The low cannabis retailer count only includes retail licensees, while the high count adds microbusinesses and delivery services. The number of licensees reflects those cannabis businesses operating as of July 2020 that began operations prior to the end of 2019.
CANNABIS TAX RECEIPTS
The primary cannabis revenues to the state come from specific taxes, which are levied at different rates.
CANNABIS TAX RATES
Excise Tax
The excise tax for cannabis uses a standard 15 percent rate specified in the approved Proposition 64.
This applies to all taxable retail cannabis transactions based on the average market price. 1 Arcview Market Research and BDS Analytics; California: Lessons From The World’s Largest Cannabis Market; June 2019.
2 This figure is based on the statewide 15% excise tax rate for taxable cannabis sales. The 2019 figure for taxable sales by cannabis retailers was $2.7 billion, which also includes non-cannabis taxable sales. 3 In order to keep the retailer count consistent with the taxable sales total, the active cannabis retailer total does not include any licenses approved after December 31, 2019.
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Sales Tax
Sales taxes will vary by jurisdiction. The standard allocations for sales taxes begin with a statewide base rate of 7.25 percent.4 This follows the formula established under the Bradley-Burns Uniform Sales and Use Tax Law, which allocates sales taxes as follows:
6.0 percent to the State
1.0 percent to the local jurisdiction for the point of sale (City or County)
0.25 percent to the local County transportation fund for the point of sale Additional local taxes for special districts can be levied as well. These district taxes can range from 0.1 to 1.0 percent, and a specific location can have multiple districts. The highest sales tax rates in California are 10.25 and 10.5 percent, which occur in portions of Los Angeles County.
Cultivation Tax
The cultivation tax is levied on harvested cannabis that enters the commercial market. The current rates are based on weight, and will range from $1.35 to $9.65 per ounce and depend on whether the cannabis is a fresh flower or dry flower or dry leaf.5
EXISTING CANNABIS TAX RECEIPTS
As shown in Table 2, California saw a marked increase in legal cannabis sales in 2019. The cannabis taxes in California are highly variable by jurisdiction, as is the availability of legal cannabis, as many jurisdictions have yet to enable cannabis retailers to operate within their boundaries. In calendar year 2019, California collected a total of $635.3 million in cannabis-related taxes, as shown in Table 3. This does not include local taxes enacted at the city and county level.
TABLE 2: CALIFORNIA CANNABIS TAX RECEIPTS, 2018 AND 2019
YEAR EXCISE TAX
CULTIVATION
TAX SALES TAX TOTAL TAX
2018 $191,200,000 $36,700,000 $168,600,000 $396,800,000 2019 $310,300,000 $87,000,000 $238,000,000 $635,300,000 Source: CDTFA
COMPARISON OF STATE CANNABIS BENCHMARKS
In benchmarking California’s legal cannabis sales performance against other states that have legalized recreational cannabis sales, the state generally does not fare well. As shown in Table 3, California’s per capita taxable cannabis sales of $51.77 in 2019 is less than half the per capita sales in Washington, Oregon, and Colorado. California’s per capita legal cannabis sales is comparable to Massachusetts. However, 2019 was also Massachusetts’ first full year of legal recreational cannabis sales.
4 https://www.cdtfa.ca.gov/taxes-and-fees/local-and-district-taxes.htm 5 https://www.cdtfa.ca.gov/taxes-and-fees/tax-rates-stfd.htm 111
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By comparison, California’s average taxable sales per retailer of $2.1 million is comparable to the average sales in Colorado and Washington.
TABLE 3: COMPARISON OF CALIFORNIA PER CAPITA AND PER RETAILER CANNABIS SALES WITH OTHER STATES STATE
CANNABIS
SALES PER
CAPITA
AVERAGE
CANNABIS
SALES PER
RETAILER
California $51.77 $2,110,884
Colorado $244.28 $2,349,171
Massachusetts $57.13 $4,023,808
Oregon $160.95 $1,031,550
Washington $140.18 $2,030,399
Source: ADE, Inc.; data from CDTFA, California Department of Finance, California Bureau of Cannabis Control, Colorado Department of Revenue, Colorado State Demography Office, Massachusetts Cannabis Control Commission, Massachusetts State Data Center, Oregon Department of Revenue, Oregon Liquor Control Commission, PSU Population Research Center, Washington State Liquor and Cannabis Board, and Washington Office of Financial Management, Forecasting and Research Division.
CANNABIS DEMAND IN CALIFORNIA
Table 4 shows the benchmarks for cannabis demand in California. Applying the ratio of legal to illegal cannabis sales from the Arcview/BDS study, California’s existing $2.1 billion in legal taxable cannabis sales would yield a total addressable cannabis market (legal and illegal sales) of about $7.8 billion.
Legal sales make up about 23% of the total adult use cannabis market in California (not including medicinal cannabis).
In order to estimate the legal cannabis demand in California, the analysis used a range of potential outcomes. Because of California’s existing per capita taxable cannabis sales ranks far behind other states with legalized adult use cannabis sales, the low cannabis demand scenario uses the existing sales in California as the benchmark.
The high cannabis demand scenario uses the per capita taxable cannabis sales in Colorado to illustrate the size of the California market if it can achieve the same magnitude of legal sales. Colorado was the first state in the U.S. to legalize recreational cannabis sales, so it represents a mature market scenario. Using these two scenarios, the size of the legal cannabis market in California ranges from $2.1 billion to $9.8 billion.
The Arcview/BDS study projects that total adult use cannabis sales will grow at an annual rate of about 2.9 percent, while legal cannabis will grow at a rate of 18.4 percent. The difference between the growth rates is offset by a projected 6.0 percent annual loss of illegal cannabis sales. Using these growth rates, the potential legal cannabis demand in California by 2024 would grow to $4.8 billion, with an overall market of $9.1 billion when accounting for both legal and illegal cannabis sales.
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TABLE 4: LEGAL CANNABIS DEMAND BENCHMARKS FOR CALIFORNIA Existing California Benchmarks
Population (2019) 39,959,095
Legal Cannabis Demand (Low) $2,068,666,667
Legal Cannabis Demand (High) $9,761,281,019
Existing Retailers 980
Exiting Retailers (including microbusinesses) 1,405
Total Addressable Cannabis Market (Legal and Illegal Sales) $7,874,279,570 2024 California Projection
Legal Cannabis Demand (Arcview/BDS Growth Projection) $4,804,645,161 Total Addressable Cannabis Market (Legal and Illegal Sales) $9,075,440,860 Source: ADE, Inc.; data from Arcview Market Research/BDS Analytics, CDTFA, California Department of Finance, California Bureau of Cannabis Control, Colorado Department of Revenue, Colorado State Demography Office.
Notes: The low cannabis demand scenario is based on the per capita taxable cannabis sales in California through the 15% statewide excise tax. The high cannabis demand scenario is based on the per capital taxable cannabis sales in Colorado, which their Department of Revenue reports directly.
CASE STUDIES
INTRODUCTION
In order to provide some local context, the analysis also included case studies of three different jurisdictions in California – Stockton, San Bruno, and unincorporated Sacramento County. These communities are each in different stages of approval/disapproval for cannabis businesses. But, none of them currently have a significant base of cannabis retailers. So, the revenue and business formation potential within these communities should be considered a potential net gain in economic activity for those jurisdictions.
The case studies are intended to illustrate the degree of market support for cannabis businesses in these communities, and the local tax revenue potential if local legal cannabis establishments can meet this market demand. It should be noted that at least some portion of the existing cannabis demand is likely met by legal cannabis establishments operating in other communities. The remainder of the market demand is likely met through illegal cannabis sales.
LOCAL CANNABIS TAXES
Under Proposition 64, cities and counties are allowed to collect their own taxes on cannabis. These tax revenues stay with the local jurisdiction. The local cannabis taxes have also seen very wide ranging outcomes of cannabis legalization. Communities throughout California have enacted tax measures that establish local cannabis tax rates, most of which go through initiatives voted on by local residents.
Even for communities that have made no provisions to allow retail cannabis businesses, the tax measures were presented to the voters in order to have the mechanisms in place in the eventuality that cannabis retailers are allowed.
Typically, a local cannabis tax measure will specify a maximum cannabis tax rate, and set an initial tax rate lower than the maximum. In other cases, the initial rate is set by the City Council or Board of Supervisors. Other communities might charge development fees instead of or in addition to the local cannabis taxes.
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In addition to cannabis sales, retail cannabis businesses also generate sales from other non-cannabis items, such as smoking accessories and related products. While they do not generate cannabis taxes, these additional retail transactions further increase the sales tax revenues that local and state governments can potentially collect.
STOCKTON CASE STUDY
The City of Stockton has a recently enacted system for issuing cannabis licenses. Their setup entails issuing cannabis licenses with a lottery system. Two licenses are issued in each of four different business categories: microbusiness, retail, manufacturing, and cultivation. This program began in 2019, and the 2020 license lottery was set to take place in June. Stockton has enacted a local cannabis tax rate of 5%.
As shown in Table 5, the market demand for legal taxable cannabis in Stockton ranges from a low of $16.5 million (based on the existing per capita taxable cannabis sales in California) to a high of $77.8 million (based on existing per capita taxable cannabis sales in Colorado).
The total addressable cannabis market in Stockton (combined legal and illegal cannabis sales) is currently about $62.8 million.
TABLE 5: LEGAL CANNABIS DEMAND AND POTENTIAL RETAIL SUPPORT IN CITY OF STOCKTON
STOCKTON CASE STUDY
1. Population (2020) 318,522
2a. Legal Cannabis Demand (Low) $16,489,759
2b. Legal Cannabis Demand (High) $77,809,138
3a. Supportable Retailers (Low) 7.8
3b. Supportable Retailers (High) 36.9
4. Currently Allowed Retailers (2019 and 2020 License Lottery) 4 5a. Local Tax Potential (Low Based on 5% rate) $824,488 5b. Local Tax Potential (High Based on 5% rate) $3,890,457
6. Current Addressable Cannabis Market (Legal and Illegal Sales) $62,767,470
Source: ADE, Inc.; data from Arcview Market Research/BDS Analytics, CDTFA, California Department of Finance, California Bureau of Cannabis Control, Colorado Department of Revenue, Colorado State Demography Office.
Notes: The low cannabis demand scenario is based on the per capita taxable cannabis sales in California through the 15% statewide excise tax. The high cannabis demand scenario is based on the per capital taxable cannabis sales in Colorado, which their Department of Revenue reports directly.
The number of supportable legal cannabis retailers will range from about 7.8 to 36.9 establishments.
This is a conservative estimate because it uses the taxable sales per retailer average for California. It should be further noted that this benchmark average does not include microbusinesses. Using the benchmark average that includes microbusinesses in the total, the number of supportable establishments increases to 52.8.
Local tax potential for the City of Stockton, based on its existing local cannabis tax rate of 5%, ranges from about $824,500 to $3.9 million annually.
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SAN BRUNO CASE STUDY
The City of San Bruno is an untapped cannabis market with no existing cannabis retailers operating within the city limits. Even though San Bruno has no framework in place for licensing or permitting retail cannabis establishments, the community has taken initial steps towards the eventuality that legal cannabis retailers do open for business in San Bruno at a future date. On June 29, 2020, the San Bruno City Council passed a resolution to include a ballot measure for the fall election that sets a local cannabis tax of 10%. The measure does not include any provisions for approving or licensing cannabis businesses in San Bruno.
As shown in Table 6, market demand for legal taxable cannabis in San Bruno ranges from $2.4 million (based on existing California per capita taxable cannabis sales) to $11.1 million (based on existing Colorado per capita taxable cannabis sales). The total addressable cannabis market for San Bruno is $9.0 million when combining existing legal and illegal cannabis demand.
The supportable number of legal cannabis retailers will range from 1.1 to 5.3 establishments, based on existing average cannabis retail establishment sales in California. Using the lower benchmark average sales per establishment that accounts for microbusinesses would increase the high range of supportable establishments to 7.5.
The local tax potential for the City of San Bruno ranges from about $235,300 to $1.1 million. This assumes that the fall ballot measure passes and establishes a local cannabis tax rate of 10%.
TABLE 6: LEGAL CANNABIS DEMAND AND POTENTIAL RETAIL SUPPORT IN CITY OF SAN BRUNO
SAN BRUNO CASE STUDY
1. Population (2020) 45,454
2a. Legal Cannabis Demand (Low) $2,353,136
2b. Legal Cannabis Demand (High) $11,103,586
3a. Supportable Retailers (Low) 1.1
3b. Supportable Retailers (High) 5.3
4. Currently Allowed Retailers 0
5a. Local Tax Potential (Low Based on 10% rate) $235,314 5b. Local Tax Potential (High Based on 10% rate) $1,110,359
6. Current Addressable Cannabis Market (Legal and Illegal Sales) $8,957,097
Source: ADE, Inc.; data from Arcview Market Research/BDS Analytics, CDTFA, California Department of Finance, California Bureau of Cannabis Control, Colorado Department of Revenue, Colorado State Demography Office.
UNINCORPORATED SACRAMENTO COUNTY CANNABIS MARKET
The unincorporated area of Sacramento County represents the most restrictive of the three case study communities. Even though some local jurisdictions in Sacramento County, including the City of Sacramento, have provisions for licensing and collecting taxes from cannabis retailers, the County itself does not currently allow cannabis-related businesses of any kind in the unincorporated areas.
The County also has not taken the step of setting a local tax rate or establishing a framework from which cannabis businesses can eventually operate within the unincorporated areas.
As shown in Table 7, the market demand for legal taxable cannabis in unincorporated Sacramento County ranges from a low of $30.7 million (based on the existing per capita taxable cannabis sales in
Applied Development Economics | Page 11
California) to a high of $145.1 million (based on existing per capita taxable cannabis sales in Colorado).The total addressable cannabis market in unincorporated Sacramento County (combined legal and illegal cannabis sales) is about $117.0 million (based data from the Arcview/BDS study).
TABLE 7: LEGAL CANNABIS DEMAND AND POTENTIAL RETAIL SUPPORT IN SACRAMENTO COUNTY (UNINCORPORATED AREAS ONLY)
SACRAMENTO COUNTY (UNINCORPORATED) CASE STUDY
Population (2020) 593,801
Legal Cannabis Demand (Low) $30,740,845
Legal Cannabis Demand (High) $145,054,797
Supportable Retailers (Low) 14.6
Supportable Retailers (High) 68.7
Existing Cannabis Businesses and Dispensaries 0
Local Tax Potential (Low Based on 4% rate) $1,229,634
Local Tax Potential (High Based on 4% rate) $5,802,192
Total Addressable Cannabis Market (Legal and Illegal Sales) $117,013,538 Source: ADE, Inc.; data from Arcview Market Research/BDS Analytics, CDTFA, California Department of Finance, California Bureau of Cannabis Control, Colorado Department of Revenue, Colorado State Demography Office.
The number of supportable legal cannabis retailers will range from about 14.6 to 68.7 establishments.
Using the more lenient benchmark average that includes microbusinesses, the number of supportable establishments increases to a high of 98.5.
Using the City of Sacramento’s local tax rate of 4% as an assumption, the local tax potential for unincorporated Sacramento County ranges from $1.2 million to $5.8 million annually.
CONCLUSION
Based on our independent and objective analysis, cannabis businesses show significant market potential for additional legal sales throughout California. This would result in substantial increases in tax receipts for state and local governments if the number of retail cannabis establishments expands to meet local demand in those communities that do not currently have legal retail cannabis sales.
Because of the state’s underperforming retail cannabis market, the range of potential market support has significant upside. The market demand already exists, with most of the demand currently met through illicit sales channels that generate no tax revenues. As local governments struggle with meeting their budget needs and providing essential services to their residents, legal cannabis sales represent a source of revenue that has remained untapped by most California jurisdictions.
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APPENDIX B: METHODOLOGY
ASSUMPTIONS AND METHODOLOGY
The existing cannabis retail establishments and taxable sales came from the Bureau of Cannabis Control (“BCC”). The number of retail establishments includes a combination of storefront businesses, no storefront retailers, and temporary retailers. The higher number of existing cannabis businesses includes microbusinesses and delivery services that could potentially generate retail sales, even though their revenues also came from other sources.
The breakdown of tax collections came from the BCC quarterly press releases.
The California projection of future cannabis demand through 2024 is based on the growth rates projected in the 2019 study by Arcview Market Research and BDS Analytics. These growth rates were applied to the estimated legal cannabis sales that were calculated using the excise tax data from the California Department of Tax and Fee Administration (CDTFA).
CASE STUDY METHODOLOGY
The case study benchmarks correspond to the numbered lines on the tables for the three case studies.
1. Population: The population figure comes from the California Department of Finance. The per capita benchmark for California was calculated based on the 2019 population and the 2019 taxable sales figures. For the individual jurisdictions in the case studies, the analysis is based on the population estimate for January 1, 2020.
2a. Cannabis Demand (Low): The legal cannabis demand assumes a range with the existing cannabis demand representing the low estimate. The existing cannabis demand is based on CDTFA excise tax collections in 2019. Applying the 15% excise tax rate, the resulting estimate of $2.1 billion in taxable sales was divided by the state population in January 2019. The resulting benchmark comes out to $51.77 in taxable legal cannabis demand per capita. 2b. Cannabis Demand (High): The high cannabis demand uses Colorado as the benchmark.
The Colorado Department of Revenue separately tracks medicinal and adult use (taxable) cannabis sales. This data is very useful because it does not just report the tax revenues, but the actual cannabis sales. The taxable sales total was divided by the 2019 Colorado state population as reported by the Colorado State Demography Office to produce the benchmark of $244.28 in taxable cannabis sales per capita. Because it is the most mature adult use cannabis market in the country, Colorado was considered more representative of what a market area in California can potentially support once it reaches a more stable and mature state. However, it should be noted that the Colorado has continued to grow at a high rate since recreational cannabis sales started in 2014. The use of the Colorado benchmark as a high cannabis demand benchmark does not account for illegal cannabis demand that might remain in the Colorado market.
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3a and b. Supportable Retailers: The number of supportable retailers comes from the average sales per retail cannabis license in California. The benchmark average divides the total taxable cannabis sales reported by CDTFA into the total number of retail cannabis licenses in California. The retail license total comes from the California Bureau of Cannabis Control database. Licenses added after December 31, 2019 were not included in the total, and the license inventory also does not account for any retailers that might have closed in 2020. The low estimate of supportable retailers is based on the existing estimated legal cannabis demand, while the high estimate is based on the demand using the higher Colorado per capita cannabis sales benchmark. The number of supportable cannabis retailers can further increase by adding microbusinesses to the retail cannabis licensee count.
4. Currently Allowed Retailers: The number of allowed cannabis businesses is based on local laws and licensing procedures. For Stockton, their cannabis license lottery allows two retail licenses annually, and the first lottery occurred in 2019 with a second lottery concluding in June 2020. San Bruno and Sacramento County currently do not allow cannabis establishments.
5. Local Tax Potential: This figure is based on the local tax revenues that the case study jurisdictions would collect if the legal cannabis demand translates into actual local sales. The tax rates are based on what the local jurisdictions currently allow (or in the case of San Bruno, have proposed in a ballot measure).
6. Current Addressable Cannabis Market: Multiple publications assume that the majority of adult use cannabis currently comes through illegal sales. The figure used for this estimate comes from the 2019 study by Arcview/BDS. The study estimated that legal cannabis sales in California would total $3.1 billion in California, and make up about 23 percent of the total recreational cannabis sales. This percentage share is applied to the existing legal cannabis demand to come up with the total addressable cannabis market demand. This represents a combination of legal and illegal sales.
From: Phil Barry <[email protected]>
Sent: Monday, June 20, 2022 11:06 AM
To: Council <[email protected]>
Subject: Cannabis dispensaries
EXTERNAL SENDER
Los Gatos Town Cuncil,
I am in favor of cannabis dispensaries in town.I moved to Los Gatos in 1966 and have been active in the town and with the schools.
It seems to me that the town is struggling finacially with no clear way to slove the problem other than increasing taxes and fees.Cannabis dispensaries would provide a consistent and meaningful tax revenue that would not have to come out of the taxpayers pocket.
Most of the opposition feedback that I have heard is of the dog whistle variety including egregious misstatements of facts to fit their narrative. I am shocked that special interest groups continue to influence our local politics.
My request is that all 32,000 residents have a voice. Please put this measure on the ballott so that we can all have a voice in our futrue. Isn't that what democracy is all about?? Phil Barry
200 Winchester Circle
Los Gatos
From: Kathy BAys <[email protected]>
Sent: Tuesday, June 21, 2022 10:00 AM
To: Council <[email protected]>
Subject: Dispensary vote
EXTERNAL SENDER
Please do not allow dispensaries in our town. Thanks, Kathy Bays Sent from my iPhone.
CANNABIS
BUSINESS
SURVEY
Prepared By
ETC INSTITUTE
OLATHE, KANSAS
2022
Presented To The
TOWN OF LOS GATOS,
CALIFORNIA
JUNE 2022
Findings Report
ATTACHMENT 7 Page 1107
Executive Summary
Charts & Graphs:
Overall Results
Tabular Data
Survey Instrument
Section 1: page 1
Section 2: page 4
Section 3: page 25
Section 4: page 34
Section 1:
Executive Summary
Findings Report: 2022 Town of Los Gatos Cannabis Business Survey Page 1
Purpose & Methodology
Purpose
ETC Institute administered a public opinion survey to residents of the Town of Los Gatos, CA. The purpose of this survey was to gather information on the opinions of Town residents about various legalized cannabis topics. Town leaders will use this data as they explore how cannabis retail businesses could provide value to the community. Conducting a statistically valid public opinion survey ensures that the data represents the community. In ensuring the data represents the community as a whole, ensures that Town leaders have information to align Town priorities to resident's needs.
The survey instrument, cover letter, and postage paid return envelope were mailed to a random sample of households in the Town. The cover letter explained the purpose of the survey and encouraged residents to either return their survey by mail or complete the survey online.
Approximately, ten days after the surveys were mailed, ETC Institute sent emails/text messages to the households that received the survey to encourage participation. The emails/texts contained a link to the online version of the survey to make it easy for residents to complete. To prevent people who were not residents of the Town from participating, everyone who completed the survey online was required to enter their home address prior to submitting the survey.
ETC Institute then matched the addresses that were entered online with the addresses that were originally selected for the random sample. If the address from a survey completed online did not match one of the addresses selected for the sample, the online survey was not counted.
The goal was to obtain 300 surveys and this goal was achieved by a total of 403 completed surveys. The overall response for the sample of 403 households have a precision of at least +/-4.9% at the 95% level of confidence.
Methodology
Findings Report: 2022 Town of Los Gatos Cannabis Business Survey Page 2
Overview of the Findings Report
An executive summary of the survey purpose, methodology, and major findings
Charts and graphs showing the overall results
Frequency tables that show the results for each question on the survey
A copy of the cover letter and survey instrument
This report contains:
About three-fourths (71.5%) of residents are either strongly or somewhat supportive of legalized cannabis for medicinal use and onethird (33.3%) are either strongly or somewhat supportive of allowing commercial cannabis businesses in Los Gatos.
Over half (58.7%) of residents are either strongly or somewhat supportive of allow commercial cannabis retailers within the Town of Los Gatos.
Residents are most supportive of non-storefront (delivery-only) retailers for medicinal cannabis (49.0%) than residents are of storefront retailers for adult recreation use cannabis (33.5%).
Nearly all (81.3%) of residents agree that if the Town were to allow commercial cannabis businesses, the Town should limit the number of permits issues for cannabis retailers only. The majority (71.2%) believer the Town should limit the number of permits for cannabis retailers to one to three permits.
Sixty percent (60.1%) of residents agree that the Town should further limit the hours of operation for cannabis retailers, past the definition made by the State.
At least half of residents do have concerns about loitering around cannabis businesses (63.3%), youth access to cannabis (72.2%), and people driving under the influence (75.8%).
Key Findings
Findings Report: 2022 Town of Los Gatos Cannabis Business Survey Page 3
Section 2:
Charts & Graphs
of Overall Results
Findings Report: 2022 Town of Los Gatos Cannabis Business Survey Page 4
26%
32%
56%
8%
12%
16%
7%
14%
13%
6%
8%
3%
53%
33%
13%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Allowing commercial cannabis
businesses in Los Gatos
Legalized cannabis for adult
recreational use
Legalized cannabis for medicinal use
Q1: What is your level of support/opposition for the
following…
by percentage of respondents (excluding don't know responses) Strongly Support Somewhat Support Neutral Somewhat Oppose Strongly Opposed Findings Report: 2022 Town of Los Gatos Cannabis Business Survey Page
5
37%
41%
39%
47%
50%
58%
60%
16%
14%
15%
12%
14%
14%
16%
17%
16%
16%
11%
9%
8%
10%
12%
13%
13%
12%
11%
10%
8%
18%
17%
16%
18%
17%
11%
6%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
I am concerned about traffic and parking
impacts from commercial cannabis
businesses.
I am concerned about public consumption
of cannabis.
I am concerned about odor impacts from
commercial cannabis businesses.
I am concerned about public safety impacts
from commercial cannabis businesses.
I am concerned about loitering around
cannabis businesses.
I am concerned about youth access to
cannabis.
I am concerned about people driving under
the influence of cannabis.
Q2: What is your level of agreement with the following
statements…
by percentage of respondents (excluding don't know responses) Strongly Agree Agree Neutral Disagree Strongly Disagree Findings Report: 2022 Town of Los Gatos Cannabis Business Survey Page
6
Strongly
Support
51.0%
Somewhat Support
7.7%
Neutral
5.1% Somewhat Oppose
9.4%
Strongly
Opposed
26.8%
Q3: Based on this information, what is your overall level of support/opposition for allowing commercial cannabis
retailers within the Town of Los Gatos?
by percentage of respondents (excluding don't know responses) Findings Report: 2022 Town of Los Gatos Cannabis Business Survey Page
7
24%
26%
30%
34%
10%
11%
11%
15%
6%
14%
12%
15%
6%
8%
7%
5%
55%
41%
42%
31%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Storefront retailers for adult recreation use
cannabis
Non‐storefront (delivery‐only) retailers for
adult recreational use cannabis
Storefront retailers for medicinal cannabis
Non‐storefront (delivery‐only) retailers for
medicinal cannabis
Q4: What is your level of support/opposition for the
following types of commercial cannabis retailers within the Town of Los Gatos…
by percentage of respondents (excluding don't know responses) Strongly Support Somewhat Support Neutral Somewhat Oppose Strongly Opposed Findings Report: 2022 Town of Los Gatos Cannabis Business Survey Page
8
8.7%
9.8%
16.6%
17.0%
18.9%
29.1%
0.0% 20.0% 40.0% 60.0% 80.0% 100.0%
Central Business District (downtown)
Neighborhood Commercial (generally N Santa Cruz
Ave. north of Hwy 9)
Highway Commercial (generally Los Gatos Blvd.)
Don't know
Commercial/Industrial (generally University Ave.
north of Andrews Street)
Controlled Manufacturing (generally University Ave.
north of Vasona Lake)
Q5: IF the Town were to allow "Storefront Cannabis
Retail" businesses, which zones do you think would be
appropriate for business locations?
by the percentage of respondents
Findings Report: 2022 Town of Los Gatos Cannabis Business Survey Page
9
7.5%
8.8%
15.4%
16.7%
20.7%
30.9%
0.0% 20.0% 40.0% 60.0% 80.0% 100.0%
Central Business District (downtown)
Neighborhood Commercial (generally N Santa Cruz
Ave. north of Hwy 9)
Highway Commercial (generally Los Gatos Blvd.)
Don't know
Commercial/Industrial (generally University Ave.
north of Andrews Street)
Controlled Manufacturing (generally University Ave.
north of Vasona Lake)
Q6: IF the Town were to allow "Delivery Only Cannabis
Retail" businesses, which zones do you think would be
appropriate for business locations?
by the percentage of respondents (multiple response question) Findings Report: 2022 Town of Los Gatos Cannabis Business Survey
13%
14%
37%
57%
66%
9%
15%
24%
17%
16%
29%
27%
24%
10%
8%
21%
18%
6%
7%
5%
28%
27%
9%
8%
5%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
If the Town limits cannabis businesses, it
should be done on a first come/first served
basis.
If the Town limits cannabis businesses, it
should be done by a lottery.
If the Town limits cannabis businesses, it
should be done by a competitive ranking
process.
The Town should limit the number of
permits issued for cannabis retailers only.
The Town should limit the number of
permits issued for all types of cannabis
business.
Q7: IF the Town were to allow commercial cannabis
businesses, what is your level of agreement with the
following statements…
by percentage of respondents (excluding don't know responses) Strongly Agree Agree Neutral Disagree Strongly Disagree Findings Report: 2022 Town of Los Gatos Cannabis Business Survey
13.2%
11.9%
3.7%
13.4%
18.1%
39.7%
0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% 40.0% 45.0% 50.0% Don't know
Five or more permits
Four permits
Three permits
Two permits
One permit
Q8: If the Town were to limit the number of permits
issued for cannabis retailers, how many permits should
the Town allow?
by the percentage of respondents
Findings Report: 2022 Town of Los Gatos Cannabis Business Survey
4%
42%
37%
57%
46%
57%
2%
8%
12%
10%
22%
17%
11%
27%
33%
16%
13%
14%
18%
12%
9%
9%
8%
7%
65%
12%
8%
8%
11%
6%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
The Town should reduce the sensitive use
buffers to be less than 600 feet.
The Town should include an additional
sensitive use buffer from places of worship.
The Town should include an additional
sensitive use buffer from other cannabis
businesses.
The Town should increase the sensitive use
buffers to be greater than 600 feet.
The Town should maintain the 600‐foot
sensitive use buffer defined by the State.
The Town should include an additional
sensitive use buffer from residential areas.
Q9: Based on the information above, what is your level of agreement with the following statements…
by percentage of respondents (excluding don't know responses) Strongly Agree Agree Neutral Disagree Strongly Disagree Findings Report: 2022 Town of Los Gatos Cannabis Business Survey
5%
35%
27%
30%
33%
32%
39%
68%
5%
9%
24%
25%
24%
31%
28%
22%
16%
19%
28%
25%
24%
12%
20%
4%
22%
19%
10%
8%
8%
11%
5%
3%
52%
19%
11%
12%
11%
14%
8%
4%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Cannabis taxes should be set at levels that
are lower than State averages
Cannabis taxes should be set at levels that
are higher than State averages
Cannabis tax revenues should be used to
address related environmental issues
Cannabis tax revenues should be used to
address any needed Town issues
Cannabis tax revenues should be used to
address social costs of cannabis use
Cannabis taxes should be set at levels that
are consistent with State averages
Cannabis tax revenues should be used to
address related public safety issues
The Town should tax cannabis retailers
Q10: Based on the information above, what is your level of agreement with the following statements…
by percentage of respondents (excluding don't know responses) Strongly Agree Agree Neutral Disagree Strongly Disagree Findings Report: 2022 Town of Los Gatos Cannabis Business Survey
Strongly Agree
11.2%
Agree
7.6%
Neutral
14.9%
Disagree
22.2%
Strongly
Disagree
44.1%
Q11: Based on this information, what is your level of
agreement with the following statement: “The Town
should require cannabis businesses to provide additional community benefits.”
by percentage of respondents (excluding don't know responses) Findings Report: 2022 Town of Los Gatos Cannabis Business Survey
25%
49%
26%
11%
13%
15%
13%
12%
23%
13%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
The Town should maintain the hours of
operation defined by the State for cannabis
retailers.
The Town should further limit the hours of
operation for cannabis retailers.
Q12: Based on the information above, what is your level of agreement with the following statements…
by percentage of respondents (excluding don't know responses) Strongly Agree Agree Neutral Disagree Strongly Disagree Findings Report: 2022 Town of Los Gatos Cannabis Business Survey
Yes/Support
40.7%
No/Opposed
29.8%
Did Not Vote
18.1%
I don't remember
11.4%
Q13: How did you vote on Proposition 64, the Adult Use
of Marijuana Act of 2016?
by percentage of respondents (excluding don't know responses) Findings Report: 2022 Town of Los Gatos Cannabis Business Survey
Regularly
4.7%
Occasionally
7.0%
Rarely
6.5%
Never
81.7%
Q14: Do you personally use cannabis for medicinal use?
by percentage of respondents (excluding don't know responses) Findings Report: 2022 Town of Los Gatos Cannabis Business Survey
Regularly
4.9%
Occasionally
7.8% Rarely
9.6%
Never
77.6%
Q15: Do you personally use cannabis for adult
recreational use?
by percentage of respondents (excluding don't know responses) Findings Report: 2022 Town of Los Gatos Cannabis Business Survey
0‐5 years
19.8%
6‐10 years
12.4%
11‐20 years
19.3%
21‐40 years
33.6%
41+ years
14.8%
Q16: Approximately how many years have you lived
in Los Gatos?
by percentage of respondents (excluding not provided responses) Findings Report: 2022 Town of Los Gatos Cannabis Business Survey
1.0%
0.2%
0.2%
0.5%
1.2%
6.6%
16.0%
74.3%
0.0% 20.0% 40.0% 60.0% 80.0% 100.0%
Other
Native Hawaiian or Other Pacific Islander
Chicano/Chicana
American Indian/Alaska Native
African American/Black
Hispanic/Latino/Latina/Spanish Origin
Asian
White
Q17: Which of the following best describes your
race/ethnicity? by the percentage of respondents (multiple response question) Findings Report: 2022 Town of Los Gatos Cannabis Business Survey
Under $50k
6.2% $50k‐
$99,999
11.4%
$100k‐
$199,999
31.3%
$200k+
38.7%
Not provided
12.4%
Q18: Would you say your total annual household
income is...
by percentage of respondents (excluding not provided responses) Findings Report: 2022 Town of Los Gatos Cannabis Business Survey
18‐24
2.7% 25‐34
15.1%
35‐44
18.1%
45‐54
18.9%
55‐64
18.9%
65+
20.1%
Not provided
6.2%
Q19: What is your age?
by percentage of respondents (excluding not provided responses) Findings Report: 2022 Town of Los Gatos Cannabis Business Survey
Male
49.1%
Female
49.4%
Non‐binary
0.2%
Prefer to
self‐describe
1.2%
Q20: What is your gender identity?
by percentage of respondents (excluding not provided responses) Findings Report: 2022 Town of Los Gatos Cannabis Business Survey
Section 3:
Tabular Data
Findings Report: 2022 Town of Los Gatos Cannabis Business Survey Page 25
1. What is your level of support/opposition for the
following…
Strongly
Support
Somewhat
Support Neutral Somewhat Oppose Strongly Opposed
Legalized cannabis for medicinal use 55.8% 15.8% 12.5% 3.3% 12.8% Legalized cannabis for adult recreational use 32.1% 12.2% 14.4% 8.5% 32.8% Allowing commercial cannabis businesses in Los Gatos 25.8% 7.5% 7.3% 6.3% 53.1%
2. What is your level of agreement with the followingstatements… Strongly Agree Agree Neutral Disagree Strongly DisagreeI am concerned about odor impacts from commercial cannabis businesses. 39.2% 15.4% 15.6% 13.3% 16.4%
I am concerned about traffic and parking impacts fromcommercial cannabis businesses. 37.1% 15.7% 17.3% 12.2% 17.8%I am concerned about public safety impacts from commercial cannabis businesses. 47.1% 11.8% 11.0% 12.0% 18.0%I am concerned about loitering around cannabisbusinesses. 49.5% 13.8% 8.8% 11.3% 16.8%I am concerned about youth access to cannabis. 57.9% 14.3% 7.5% 9.8% 10.5% I am concerned about public consumption of cannabis. 40.6% 13.8% 16.0% 12.5% 17.0% I am concerned about people driving under theinfluence of cannabis. 60.1% 15.7% 10.5% 7.7% 6.0% Strongly
Support
Somewhat
Support Neutral Somewhat Oppose Strongly Opposed
3. Based on this information, what is your overall levelof support/opposition for allowing commercialcannabis retailers within the Town of Los Gatos?
51.0% 7.7% 5.1% 9.4% 26.8%
Findings Report: 2022 Town of Los Gatos Cannabis Business Survey
4. What is your level of support/opposition for the
following types of commercial cannabis retailers
within the Town of Los Gatos…
Strongly
Support
Somewhat
Support Neutral Somewhat Oppose Strongly Opposed
Storefront retailers for medicinal cannabis 29.8% 10.5% 11.5% 6.8% 41.5%Storefront retailers for adult recreation use cannabis 23.8% 9.8% 5.5% 6.3% 54.8% Non‐storefront (delivery‐only) retailers for medicinal
cannabis 34.0% 15.0% 15.3% 5.3% 30.5%Non‐storefront (delivery‐only) retailers for adultrecreational use cannabis 26.1% 10.5% 14.3% 8.3% 40.9%
5. Storefront Cannabis Retail Number PercentNeighborhood Commercial (generally N Santa Cruz Ave.north of Hwy 9) 69 9.8%Central Business District (downtown) 61 8.7% Highway Commercial (generally Los Gatos Blvd.) 117 16.6%Commercial/Industrial (generally University Ave. north of Andrews Street) 133 18.9%Controlled Manufacturing (generally University Ave.north of Vasona Lake) 205 29.1%Don't know 120 17.0% Total 705 100.0%
There are a variety of commercial cannabis business types, not all of which may be suitable for the same locations in the Town. IF the Town were to allow each of the following types of cannabis businesses, which zones do you think would be appropriate for each one?
Findings Report: 2022 Town of Los Gatos Cannabis Business Survey
6. Delivery Only Cannabis Retail Number Percent
Neighborhood Commercial (generally N Santa Cruz Ave.
north of Hwy 9) 65 8.8%Central Business District (downtown) 55 7.5%Highway Commercial (generally Los Gatos Blvd.) 113 15.4%Commercial/Industrial (generally University Ave. north of Andrews Street) 152 20.7%Controlled Manufacturing (generally University Ave.north of Vasona Lake) 227 30.9%Don't know 123 16.7% Total 735 100.0%7. Based on the information above, IF the Town wereto allow commercial cannabis businesses, what is yourlevel of agreement with the following statements… Strongly Agree Agree Neutral Disagree Strongly Disagree The Town should limit the number of permits issued for
cannabis retailers only. 57.1% 17.4% 10.1% 7.3% 8.1%
The Town should limit the number of permits issued for
all types of cannabis business. 65.8% 15.5% 8.3% 5.1% 5.3% If the Town limits cannabis businesses, it should bedone on a first come/first served basis. 12.8% 8.6% 28.8% 21.4% 28.4% If the Town limits cannabis businesses, it should bedone by a lottery. 13.5% 14.8% 26.8% 17.7% 27.1% If the Town limits cannabis businesses, it should be
done by a competitive ranking process. 36.5% 24.0% 24.4% 5.8% 9.3% Findings Report: 2022 Town of Los Gatos Cannabis Business Survey
8. If the Town were to limit the number of permits
issued for cannabis retailers, how many permits
should the Town allow?
Number Percent
One permit 160 39.7%Two permits 70 18.1%Three permits 54 13.4% Four permits 15 3.7%Five or more permits 48 11.9%Don't know 53 13.2%Total 400 100.0%9. Based on the information above, what is your level of agreement with the following statements…
Strongly Agree Agree Neutral Disagree Strongly Disagree The Town should maintain the 600‐foot sensitive use
buffer defined by the State. 45.8% 21.7% 12.8% 8.4% 11.3% The Town should increase the sensitive use buffers tobe greater than 600 feet. 56.9% 9.8% 16.3% 9.5% 7.6%The Town should reduce the sensitive use buffers to beless than 600 feet. 3.7% 1.7% 11.3% 18.1% 65.2% The Town should include an additional sensitive use
buffer from residential areas. 56.7% 16.9% 13.6% 7.1% 5.7% The Town should include an additional sensitive usebuffer from places of worship. 41.8% 7.5% 26.7% 12.0% 12.0%The Town should include an additional sensitive usebuffer from other cannabis businesses. 37.2% 12.2% 33.4% 8.7% 8.4% Findings Report: 2022 Town of Los Gatos Cannabis Business Survey
10. Based on the information above, what is your level
of agreement with the following statements…
Strongly Agree Agree Neutral Disagree Strongly Disagree The Town should tax cannabis retailers 67.8% 21.7% 4.4% 2.5% 3.6%Cannabis taxes should be set at levels that are consistent with State averages 31.7% 31.1% 12.1% 10.7% 14.5% Cannabis taxes should be set at levels that are lower
than State averages 5.2% 4.9% 16.4% 21.6% 51.9%
Cannabis taxes should be set at levels that are higher
than State averages 34.6% 8.7% 19.0% 18.7% 19.0%
Cannabis tax revenues should be used to address socialcosts of cannabis use 33.2% 23.6% 23.6% 8.5% 11.1% Cannabis tax revenues should be used to addressrelated public safety issues 39.2% 27.6% 20.2% 5.4% 7.7% Cannabis tax revenues should be used to addressrelated environmental issues 26.9% 24.3% 28.0% 9.5% 11.3%Cannabis tax revenues should be used to address any needed Town issues 29.9% 24.8% 25.1% 8.0% 12.3%
11. Based on this information, what is your level of
agreement with the following statement: “The Town
should require cannabis businesses to provideadditional community benefits.” Number Percent
Strongly Agree 40 11.2%Agree 27 7.6%Neutral 53 14.9%Disagree 79 22.2%Strongly Disagree 157 44.1%Total 356 100.0% Findings Report: 2022 Town of Los Gatos Cannabis Business Survey
12. Based on the information above, what is your level
of agreement with the following statements…
Strongly Agree Agree Neutral Disagree Strongly Disagree The Town should maintain the hours of operationdefined by the State for cannabis retailers. 25.1% 25.7% 13.1% 12.8% 23.3%The Town should further limit the hours of operationfor cannabis retailers. 49.2% 10.9% 14.8% 11.7% 13.4%
13. How did you vote on Proposition 64, the Adult Use
of Marijuana Act of 2016? Number Percent
Yes/Support 164 40.7%
No/Opposed 120 29.8%Did Not Vote 73 18.1%
I don't remember 46 11.4%
Total 403 100.0%14. Do you personally use cannabis for medicinal use? Number PercentRegularly 18 4.7%Occasionally 27 7.0%Rarely 25 6.5%Never 313 81.7%Total 383 100.0% Findings Report: 2022 Town of Los Gatos Cannabis Business Survey
15. Do you personally use cannabis for adult
recreational use? Number PercentRegularly 19 4.9%Occasionally 30 7.8%Rarely 37 9.6%Never 298 77.6%Total 384 100.0%16. Approximately how many years have you lived in Los Gatos? Number Percent
0‐5 years 75 19.8%6‐10 years 47 12.4%11‐20 years 73 19.3%21‐40 years 127 33.6%41+ years 56 14.8%Total 378 100.0%17. Which of the following best describes your race/ethnicity? Number Percent
Asian 66 16.0%
African American/Black 5 1.2%American Indian/Alaska Native 2 0.5%White 306 74.3%Native Hawaiian or Other Pacific Islander 1 0.2%Hispanic/Latino/Latina/Spanish Origin 27 6.6% Chicano/Chicana 1 0.2%
Other 4 1.0%Total 412
Findings Report: 2022 Town of Los Gatos Cannabis Business Survey
18. Would you say your total annual household
income is...Under 50k 25 6.2%50‐99,999 46 11.4%100k‐199,999 126 31.3%200k+ 156 38.7%Not provided 50 12.4%Total 403 100.0%19. What is your age? Number Percent 18‐24 11 2.7%25‐34 61 15.1%35‐44 73 18.1%45‐54 76 18.9%55‐64 76 18.9%65+ 81 20.1%Not provided 25 6.2%Total 403 100.0%20. What is your gender identity? Number PercentMale 198 49.1%Female 199 49.4%Non‐binary 1 0.2%Prefer to self‐describe 5 1.2% Total 403 100.0%
Findings Report: 2022 Town of Los Gatos Cannabis Business Survey
Section 4:
Survey Instrument
Findings Report: 2022 Town of Los Gatos Cannabis Business Survey Page 34
Dear Los Gatos Resident,
You have been selected to participate in the 2022 Town of Los Gatos Cannabis Business Survey! Town Council and Town staff believe it is crucial to ask our residents their opinion about various legalized cannabis topics as the Town explores potentially allowing cannabis retail businesses. Asking questions ensures the Town's priorities are aligned with the needs of our residents; it is important to know what you think.
Your feedback is essential, especially since your household was among a limited number of randomly selected households that were invited to participate in this survey. Your participation is necessary to make the survey a success.
We greatly appreciate your time. We realize this survey takes some time to complete, but every question is crucial. The time you invest in this survey will influence decisions that will be made about the Town’s future.
Please return your survey or complete it online sometime during the next two weeks. ETC Institute recently administered our 2022 Community Survey and we have selected ETC Institute to administer this survey. Since 1982, ETC Institute has been serving local government organizations and is the leading market research firm in the nation. Your responses will remain confidential. Please return your survey in the enclosed postage-paid envelope addressed to ETC Institute, 725 W. Frontier Circle, Olathe, Kansas, 66061 or go to LGCannabisSurvey.org to complete the survey online. If you have any questions, please contact: Esther Campbell, Senior Research Analyst for ETC Institute, at [email protected] or (913) 254-4528.
Thank you very much for taking the time to provide your valuable input to help us as we explore the possibility of allowing cannabis retail businesses in our Town. Your participation is greatly appreciated.
Sincerely,
Laurel Prevetti
Town Manager
Town of Los Gatos
Si tiene preguntas acerca de la encuesta y no habla inglés, par favor llame al 1-844-811-0411. 如果您对调查有任何疑问并且不会说英语，请致电 1-844-872-2562.
Findings Report: 2022 Town of Los Gatos Cannabis Business Survey Page 35
2022 Town of Los Gatos Cannabis Business Survey
Please take a few minutes to complete this survey. Your input is an important part of the Town's exploration of potentially allowing cannabis retail businesses. You may complete the survey by filling it out online at LGCannabisSurvey.org or returning the paper survey in the postage-paid envelope that has been provided.
General Views of Cannabis
1. What is your level of support/opposition for the following… Strongly Support
Somewhat
Support Neutral Somewhat Oppose
Strongly
Opposed
Don't
Know
1. Legalized cannabis for medicinal use 5 4 3 2 1 9
2. Legalized cannabis for adult recreational use 5 4 3 2 1 9
3. Allowing commercial cannabis businesses in Los Gatos 5 4 3 2 1 9
2. What is your level of agreement with the following statements… Strongly Agree Agree Neutral Disagree Strongly Disagree
Don't
Know
1. I am concerned about odor impacts from commercial cannabis businesses. 5 4 3 2 1 9
2. I am concerned about traffic and parking impacts from commercial cannabis businesses. 5 4 3 2 1 9
3. I am concerned about public safety impacts from commercial cannabis businesses. 5 4 3 2 1 9
4. I am concerned about loitering around cannabis businesses. 5 4 3 2 1 9
5. I am concerned about youth access to cannabis. 5 4 3 2 1 9
6. I am concerned about public consumption of cannabis. 5 4 3 2 1 9
7. I am concerned about people driving under the influence of cannabis. 5 4 3 2 1 9
Commercial Cannabis Businesses
Commercial cannabis retailers are the only businesses that can sell cannabis to consumers. A cannabis retailer may have a storefront location where customers buy cannabis, or it may sell cannabis through a delivery service. Storefront retailers may also offer delivery. Non-storefront, delivery-only retailers must have a physical location, but it is not allowed to be open to the public. Cannabis retailers can be licensed to sell cannabis for medicinal use, or adult recreational use, or both.
3. Based on this information, what is your overall level of support/opposition for allowing commercial cannabis retailers within the Town of Los Gatos? ____(1) Strongly Support
____(2) Somewhat Support
____(3) Neutral
____(4) Somewhat Oppose
____(5) Strongly Opposed
____(9) Don’t Know
4. What is your level of support/opposition for the following types of commercial cannabis retailers within the Town of Los Gatos… Strongly
Support
Somewhat
Support Neutral Somewhat Oppose
Strongly
Opposed
Don’t
Know
1. Storefront retailers for medicinal cannabis 5 4 3 2 1 9
2. Storefront retailers for adult recreation use cannabis 5 4 3 2 1 9
3. Non-storefront (delivery-only) retailers for medicinal cannabis 5 4 3 2 1 9
4. Non-storefront (delivery-only) retailers for adult recreational use cannabis 5 4 3 2 1 9
Findings Report: 2022 Town of Los Gatos Cannabis Business Survey Page 36
Commercial Cannabis Business Locations
There are a variety of commercial cannabis business types, not all of which may be suitable for the same locations in the Town. IF the Town were to allow each of the following types of cannabis businesses, which zones do you think would be appropriate for each one?
5. Storefront Cannabis Retail
____(1) Neighborhood Commercial (generally N Santa
Cruz Ave. north of Hwy 9)
____(2) Central Business District (downtown)
____(3) Highway Commercial (generally Los Gatos
Blvd.)
____(4) Commercial/Industrial (generally University Ave. north of Andrews Street)
____(5) Controlled Manufacturing (generally University
Ave. north of Vasona Lake)
____(9) Don’t Know
6. Delivery Only Cannabis Retail
____(1) Neighborhood Commercial (generally N Santa
Cruz Ave. north of Hwy 9)
____(2) Central Business District (downtown)
____(3) Highway Commercial (generally Los Gatos Blvd.)
____(4) Commercial/Industrial (generally
University Ave. north of Andrews Street)
____(5) Controlled Manufacturing (generally
University Ave. north of Vasona Lake)
____(9) Don’t Know
Some cities have chosen to limit the number of permits that will be issued for various types of cannabis businesses. This can be done on a “first come/first served” basis, or by a lottery, or by a competitive ranking process. Limiting the number of permits can make the application process competitive and makes each one permit more valuable, which generally benefits those applicants with more business experience and greater financial capacity. This is especially true for retailers, as it can drive more customer traffic to each location.
7. Based on the information above, IF the Town were to allow commercial cannabis businesses, what is your level of
agreement with the following statements…
Strongly
Agree Agree Neutral Disagree Strongly Disagree
Don't
Know
1. The Town should limit the number of permits issued for cannabis retailers only. 5 4 3 2 1 9
2. The Town should limit the number of permits issued for all types of cannabis business. 5 4 3 2 1 9
3. If the Town limits cannabis businesses, it should be done on a first come/first served basis. 5 4 3 2 1 9
4. If the Town limits cannabis businesses, it should be done by a lottery. 5 4 3 2 1 9
5. If the Town limits cannabis businesses, it should be done by a competitive ranking process.
5 4 3 2 1 9
8. If the Town were to limit the number of permits issued for cannabis retailers, how many permits should the Town allow?
____(1) One permit ____(2) Two permits ____(3) Three permits ____(4) Four permits ____(4) Five or more permits Findings Report: 2022 Town of Los Gatos Cannabis Business Survey Page 37
The State of California generally requires that commercial cannabis businesses be located a minimum of 600 feet from certain sensitive uses, including K-12 schools, daycare centers, or youth centers. Cities are allowed to increase or decrease these sensitive use buffers and may even reduce them to zero if desired. Cities may also define additional sensitive uses.
9. Based on the information above, what is your level of agreement with the following statements…
Strongly
Agree Agree Neutral Disagree Strongly Disagree
Don't
Know
1. The Town should maintain the 600-foot sensitive use buffer defined by the State. 5 4 3 2 1 9
2. The Town should increase the sensitive use buffers to be greater than 600 feet. 5 4 3 2 1 9
3. The Town should reduce the sensitive use buffers to be less than 600 feet. 5 4 3 2 1 9
4. The Town should include an additional sensitive use buffer from residential areas. 5 4 3 2 1 9
5. The Town should include an additional sensitive use buffer from places of worship. 5 4 3 2 1 9
6. The Town should include an additional sensitive use buffer from other cannabis businesses. 5 4 3 2 1 9
Commercial Cannabis Business Taxes
Many cities have chosen to establish taxes for commercial cannabis businesses. These taxes can generate revenues for the Town to use for any desired purpose. Setting taxes too high can make it harder for cannabis businesses to compete. Often cities will use revenue from cannabis taxes to address public safety issues related to cannabis use, including drug treatment, youth programs, law enforcement or environmental issues.
10. Based on the information above, what is your level of agreement with the following statements…
Strongly
Agree Agree Neutral Disagree Strongly Disagree
Don't
Know
1. The Town should tax cannabis retailers 5 4 3 2 1 9
2. Cannabis taxes should be set at levels that are consistent with State averages 5 4 3 2 1 9
3. Cannabis taxes should be set at levels that are lower than State averages
5 4 3 2 1 9
4. Cannabis taxes should be set at levels that are higher than State averages
5 4 3 2 1 9
5. Cannabis tax revenues should be used to address social costs of cannabis use 5 4 3 2 1 9
6. Cannabis tax revenues should be used to address related public safety issues 5 4 3 2 1 9
7. Cannabis tax revenues should be used to address related environmental issues 5 4 3 2 1 9
8. Cannabis tax revenues should be used to address any needed Town issues 5 4 3 2 1 9
In addition to requiring cannabis businesses to pay a cannabis business tax, some cities also require cannabis businesses to provide specified community benefits. These may include requiring them to pay a living wage, provide health insurance and other employee benefits, contribute to community organizations and non-profits, provide paid volunteer hours for their employees, or other benefits. As with taxes, these benefits impose an additional cost on the business that can affect their profitability.
11. Based on this information, what is your level of agreement with the following statement: “The Town should require cannabis businesses to provide additional community benefits.” ____(1) Strongly Agree
____(2) Agree
____(3) Neutral
____(4) Disagree
____(5) Strongly Disagree
____(9) Don’t Know
Findings Report: 2022 Town of Los Gatos Cannabis Business Survey Page 38
Other Topics
The State allows cannabis retailers to sell and deliver cannabis only between the hours of 6:00 a.m. and 10:00 p.m. Some cities choose to limit these hours even further.
12. Based on the information above, what is your level of agreement with the following statements…
Strongly
Agree Agree Neutral Disagree Strongly Disagree
Don't
Know
1. The Town should maintain the hours of operation defined by the State for cannabis retailers. 5 4 3 2 1 9
2. The Town should further limit the hours of operation for cannabis retailers. 5 4 3 2 1 9
13. How did you vote on Proposition 64, the Adult Use of Marijuana Act of 2016? ____(1) Yes/Support ____(2) No/Opposed ____(3) Did Not Vote
14. Do you personally use cannabis for medicinal use?
____(1) Regularly ____(2) Occasionally ____(3) Rarely ____(4) Never
15. Do you personally use cannabis for adult recreational use? ____(1) Regularly ____(2) Occasionally ____(3) Rarely ____(4) Never Demographics
16. Approximately how many years have you lived in Los Gatos? ______ years
17. Which of the following best describes your race/ethnicity? [Check all that apply.] ____(01) Asian
____(02) American/Black
____(03) American Indian/Alaska Native
____(04) White
____(05) Native Hawaiian or Other Pacific Islander
____(06) Hispanic/Latino/Latina/Spanish Origin
____(07) Chicano/Chicana
____(99) Other: _________________________
18. Would you say your total annual household income is... ____(1) Under $50,000 ____(2) $50,000 to $99,999 ____(3) $100,000 to $199,999 ____(4) $200,000+
19. What is your age?
____(1) 18-24 years
____(2) 25-34 years
____(3) 35-44 years
____(4) 45-54 years
____(5) 55-64 years
____(6) 65+ years
20. What is your gender identity?
____(1) Male ____(2) Female ____(3) Non-binary/third gender (4) Prefer to self-describe:_________
21. Please provide any additional comments you may have:
This concludes the survey. Thank you for your time!
Please return your survey in the postage-paid envelope addressed to:
ETC Institute, 725 W. Frontier Circle, Olathe, KS 66061 The information shown to the right will ONLY
be used to help ensure the survey results are
statistically representative of residents in the
area. Thank you.
Findings Report: 2022 Town of Los Gatos Cannabis Business Survey Page 39