The county board of supervisors approved a resolution to maintain the tax rate for the cannabis industry at 6%.
The cannabis business tax was established in 2018, which started at 4%, and would increase by 2% each year on July 1st, to a maximum of 10%.
However, in fiscal year 23 – 24, the board voted to reduce the rate from 8 to 6%, and has maintained this tax rate. The agenda for yesterday’s meeting says every 1% change in the tax rate results in around 92 thousand dollars in less revenue for the county.
Cannabis business owners spoke at the board meeting yesterday in support of keeping the tax rate at 6%. Others called on the board to reduce the taxes on other businesses, not just cannabis.
Following public comment, supervisor Moreno said: “The county doesn’t tax other businesses. So we don’t have a bunch of taxes that we can reduce on other industries. That’s not quite the way it works”
