Cannabis Industry Issues Dire Warning to Costa Mesa

Costa Mesa’s cannabis program is like a microcosm of the state’s experiment with legal weed. Hoping for a windfall in tax revenue, the city opened its doors to commercial marijuana in 2016. But the actual intake has been underwhelming and industry representatives warn the local industry is now at risk of collapse.

Nearly two dozen cannabis executives sent a recent letter to the City Council. They’ve requested a decrease in the local tax rate on manufacturing, distribution and testing businesses from 6% to 2% among other changes. The aim? To help legal cannabis compete.

The city has been convening on the matter for some time, even forming an ad hoc committee to investigate the industry’s concerns. But executives say time is running out.

“When there’s no oxygen in the room, you don’t sit there and debate whether you know how much oxygen you should give people” said Steve Hellings, who runs a cannabis manufacturing businesses.

Read more at the Los Angeles Times.

 


Comments

Top Stories

Tuesday, October 20, 2020 - 05:12

Finance Director Adam Pirrie was appointed acting city manager by the Claremont City Council last week.The unanimous appointment came after the resignation of City Manager Tara Schultz.

Rev & Tax

Thursday, October 8, 2020 - 05:41

Milpitas Mayor Rich Tran has threatened to sue the state and Santa Clara County over a $29.2 million plan to turn an Extended Stay America hotel into permanent homeless housing.

Special Reports

Tuesday, September 8, 2020 - 04:40

The coronavirus pandemic has breathed new life into the debate over “strong mayors.” San Jose Mayor Sam Liccardo and Sacramento Mayor Darrell Steinberg have recently pushed for strong mayor charter