San Diego’s Board of Supervisors voted to lower tax rates for cannabis stores in the county to allow the businesses to compete with those in neighboring cities, the San Diego Union-Tribune reports. Could Following a 4-1 board vote, the tax measure would be imposed on five existing legal marijuana operations and any others that open their doors.
Jim Desmond, one of the supervisors, said, “As we set out these dollars that are collected, I think they should benefit the communities that they are in.” “County code allows on-site consumption or smoking and tasting rooms. If people are getting high and driving down winding roads (that are) dimly lit in unincorporated territory, that’s a big problem.
He said board chair Nora Vargas proposed taxing crops by square footage instead of revenue, which would have cost cannabis traders more of an estimate.
Under the new system, marijuana operations (in unincorporated county areas) would be taxed $7 per square foot for cultivation, 2.5 percent for manufacturing, 1 percent for testing, and 2 percent for distribution and retail sales, according to local news reports. Will pay gross receipts. Shop.
While some marijuana operators said the low tax rates were too high, others said the board should establish higher tax rates to cover costs (including the effects on law enforcement, public health and market competition).
What will happen next?
On February 28, the board will vote on whether or not to authorize the cannabis tax ordinance. If approved, the tax would take effect on April 1, with the first payment due in July.
in 2022, Signed by Gov. Gavin Newsom Assembly Bill 195 which State eliminates marijuana cultivation tax, a study was done that year shed light on The immediate elimination of the cultivation tax will impact important issues ranging from seed to sales in the state’s legal cannabis market. According to the study, the state could increase legal cannabis sales and bring in 123% more total monthly cannabis-related tax revenue by 2024.
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