Cannabis Revenue Can't Offset Framingham CPA Surcharge — Yet

Framingham MA

21 January, 2021

8:00 AM

Description

FRAMINGHAM, MA — An idea to pay for a new property surcharge in Framingham linked to the Community Preservation Act (CPA) through local cannabis businesses may be a possibility, according to the City Council. In early October the Framingham City Council passed a resolution supporting the adoption of the CPA. Before the resolution passed unanimously, Chair George King Jr. asked Mayor Yvonne Spicer to explore if the CPA property tax bill surcharge could be offset with revenue from local cannabis businesses. Under state law, non-medical cannabis retailers may pay up to a 3 percent local option tax. Framingham did not specify during the 2021 budget process how much revenue the city earned from these business, but statewide in fiscal 2020 — the budget year that ended on June 30 — the local option cannabis tax generated just over $18 million across 46 cities and towns. Framingham voters adopted the CPA in November, and it includes a 1 percent surcharge on tax bills for most property owners. In recent months, the Council has been drafting a local CPA ordinance, which passed on a first reading — a second reading will be required for full final passage — on Tuesday. In a report on the city's ordinance, Councilors said they discovered "state law prohibits the earmarking of these and other general fund revenues outside the annual appropriations process." That may leave open the possibility of diverting the cannabis revenue during the annual budget process, which typically happens in May and June. Framingham has two adult-use retailers: Cultivate along Route 9 and Temescal Wellness north of the Natick Mall. Nova Farms along Route 9 near Tower Street has not opened yet.