Millwood gets big marijuana tax reimbursement

The biggest winner in the decision by the Washington Legislature to share marijuana tax revenue may be the city of Millwood.

The Washington Liquor and Cannabis Board projects the city will receive $80,000 from state coffers as its share of marijuana tax revenue – enough to boost Millwood’s $1.4 million annual budget by nearly 6 percent.

If the city wanted to, it would be enough to cut each of Millwood’s roughly 1,800 residents a $47 check.

But it’s unclear whether Millwood and other cities and counties will be able to spend that money on their own projects or if the pot revenue windfall must be spent on law enforcement.

“It’s not real clear in the law itself,” said Tom Richardson, Millwood’s planner.

Based on guidance from the Association of Washington Cities, he said, “We’ll likely put the money in reserves for law enforcement.”

Millwood, like several cities in the county, contracts with the Sheriff’s Office for policing. The city budgeted $217,825 for public safety this year.

Spokane County, which anticipates about $443,000 in payments from the state, believes the money comes with no strings attached.

“I don’t know of any restrictions,” said Spokane County CEO Marshall Farnell, referring to guidance from the Washington State Association of Counties. Farnell said he would consult with legal staff to ensure that interpretation is correct.

He said county officials were pleasantly surprised by the amount Spokane County will receive. Officials were expecting about $100,000, he said.

The first of quarterly installment payments to counties and cities were sent out by the Liquor and Cannabis Board several weeks ago.

A new state law signed by Gov. Jay Inslee this summer sets up a calculation for each city and county’s share of marijuana tax revenue, which had been paid into a statewide account. There are still earmarked uses at the state level for education, law enforcement and funding of programs at state public schools and universities.

Once that money has been allocated, the additional money that would have landed in the state’s general fund is to be distributed to counties and cities based in part on the amount of marijuana sales that occurs within their borders, and in part based on the number of residents.

Within Millwood city limits are two of the most profitable marijuana businesses in Spokane County: Sativa Sisters, which has reported revenues of $5.1 million since opening in August 2014; and Greenlight, reporting revenues of $4.8 million since opening last October.

In comparison, the city of Spokane, which boasts a population roughly 210 times greater than Millwood, will receive $123,012 from the state, according to projections. Spokane Valley, with about 91,000 residents, will receive $75,825, less than Millwood.

Cities and counties that have chosen to ban marijuana retailers will receive no money from the state.

Millwood, like many cities and counties in the state, has chosen to put the brakes on marijuana business expansion as the Liquor and Cannabis Board reopens the application process.

Spokane Valley has had a moratorium in place since December 2014 that has sent potential businesses to seek locations outside that city’s limits.

Millwood officials will spend the next few months evaluating how many marijuana stores the city might support, particularly in the wake of an armed robbery at Greenlight in August.

Richardson said Millwood anticipates one medicinal marijuana dispensary will apply for state licensing in the city, and an existing retailer is looking at relocating to the town.

“We just don’t want to have a string of eight or 10 marijuana stores on Trent, just because that’s the only place they can go,” Richardson said.

The decision on expansion of marijuana retailing in Millwood won’t be influenced by dollar signs, he added.

Said Richardson, “We’re not doing this for the money.”