California City Lowers Marijuana Tax Rates

Time and again, cities have demonstrated the economic benefits of lowering cannabis tax rates. Now, it’s California City’s turn.

California City voted March 23 to lower tax rates for cannabis manufacturing and distribution. They'll drop from 6% to 1% for manufacturing and to 0.5% for distribution. Staff had proposed reducing tax rates on both manufacturing and distribution to 1%, but the Council was persuaded by industry officials to drop the distribution rate even lower.

The city heard from an array of cannabis business owners who said the current tax rate was making the city less competitive.

“The benefits of this potential revenue will ultimately benefit the residents by allowing the City a revenue source to improve parks, streets landscaping throughout the city and more job opportunities for local residents,” said City Manager Anna Linn (Antelope Valley Press). “It will also help to eliminate the special tax and absorb public safety to the general fund.”


Comments

Top Stories

Thursday, June 17, 2021 - 05:11

The recall effort against Gavin Newsom is being watched across the nation. But California's governor isn’t the only one whose job is potentially on the line.

Rev & Tax

Thursday, June 17, 2021 - 05:22

Cities like Fresno and Ontario have been courting online retail giants with generous sales-tax rebate programs that return as much as 50 to 80% of the tax to the retailers.