The measure was aimed at growers who set up indoor marijuana gardens in residential neighborhoods.
Mayor Michael Winkler said the vote shows even though people in Arcata are pretty liberal about marijuana, they want the large indoor growing operations out of their neighborhoods.
If growers don't leave, Winkler says he will ask voters to raise the tax even more.
He also hopes to persuade neighboring communities to take similar steps.
Medical marijuana has been legal in California since 1996, when the state became the first to allow patients with doctor's recommendations to possess the drug. Marijuana remains illegal under federal law.