Media Report: California Cuts Taxes to Support Cannabis Businesses

Business of Cannabis reports

Over a dozen cities and counties in California, including Los Angeles and San Francisco, have cut local sales, business or cultivation taxes over the past year.

According to new research compiled by Hirsh Jain of Los Angeles consultancy Ananda Strategy, reported by MJBizDaily, 14 states and cities have now taken action to help ‘preserve a struggling industry’.

Mr Jain said: “These local jurisdictions arguably need the revenue more than the state does… That’s why it’s all the more disappointing the state’s not getting the memo.”

In California, cannabis companies have long struggled with the 15% state excise tax, on top of state sales taxes ranging from 7.25% to 10.75%, alongside local taxes that cities or counties might impose.

San Luis Obispo County Supervisor Dawn Ortiz-Legg, who has pushed to cut taxes as a low as 4%, told MJBizDaily: “I think it’s our responsibility to help people who are following the rules and paying bills. Instead of being penalised, they should be supported and helped.”

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