The Long Beach Post
Long Beach cannabis retailers and cultivators could get a tax break this year after the City Council requested an ordinance be drafted to lower rates for businesses that meet hiring and compensation markers and are up to date with their current tax payments.
Currently, Long Beach charges a 6% excise tax on medical cannabis purchases and 8% on recreational adult-use sales. That’s on top of the city’s regular sales tax of 10.25% and the state’s excise tax of 15%.
The taxes have contributed millions of dollars annually to the city’s general fund since the retail industry began operating at capacity a few years ago, but retailers say they’ve undermined their ability to compete with the illicit market.
Tuesday’s vote advanced a 1 percentage point cut across the board for retailers with the opportunity to qualify for an additional 3 percentage points if they meet “good standing requirements.”
Cultivators would also get a tax break, with their square-footage tax dropping from $14.96 to $13.09, the equivalent of a 1 percentage point cut.
Any tax breaks would have to be passed along to customers.
https://lbpost.com/news/long-beach-to-cut-cannabis-taxes-in-half-for-retailers-in-good-standing/
