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.