San Diego’s Board of Supervisors has voted to lower the tax rate on cannabis stores in the county to allow businesses to compete with cannabis stores in neighboring cities, the San Diego Union-Tribune reported. Following his 4-to-1 vote of the board, tax measures will be imposed on his five existing legal marijuana businesses and others that open their doors.
As Jim Desmond, one of the supervisors, said: “County code allows consumption or smoking and tasting rooms on premises. It’s a bigger problem when people are driving high, winding roads (that is) dim roads in unincorporated areas. ”
Director Nora Vargas proposed taxing crops by acreage instead of revenue. This makes costs more predictable for cannabis business owners, she said.
According to local news, under the new system, marijuana businesses (in unincorporated county areas) will be allowed up to $7 per square foot for cultivation, 2.5% for manufacturing, 1% for testing, and 1% for retail sales. You will pay 2% on distribution and gross revenue. exit.
Some marijuana businesses said even the reduced tax rates were too high, while others said that to cover the costs (including the impact of law enforcement, public health, and market competition), the Commission He said a higher tax rate should be set.
what’s next?
On February 28, the Board will vote on whether to approve the Cannabis Tax Ordinance. If approved, the tax will go into effect on April 1st and the first payment will be made in July.
2022, Signed by Governor Gavin Newsom Congressional Bill 195 to repeal the Marijuana Cultivation Tax. A study conducted that year highlighted the impact of the immediate elimination of the cultivation tax on the significant issues facing the state’s legal cannabis market, from seed to sale. The study found that the state could increase legal cannabis sales and increase monthly cannabis-related tax revenue by 123% by 2024.
The Benzinga Cannabis Capital Conference is back!
The Benzinga Cannabis Capital Conference, the world’s most successful cannabis business event, returns to Miami for its 16th edition. This is where funding is raised, M&A is initiated, and companies meet investors and key partners. Join us April 11-12 at the Fontainebleau Miami Beach Hotel in Florida. Do not miss it. Secure your ticket now. Prices will skyrocket quickly.
Image credit: greenserenityca by Pixabay Editor Benzinga