Officials in San Francisco, California last week delayed the implementation of the city’s cannabis taxes until the end of 2021, Law360 reports. The Board of Supervisors also cut industry operators’ tax burdens by raising the threshold for when they will start collecting taxes from the first $500,000 of a business’ gross receipts to $1 million.
The measure sets gross receipt taxes from sales up to and including $1 million at 2.5 percent, with anything above that mark taxed at 5 percent. The bill also imposes a 1 percent tax on any other cannabis revenue up to $1 million, or 1.5 percent for anything above $1 million, the report says. California imposes a 15 percent tax rate on sales.
City officials said the new ordinance would reduce the city’s 2021 revenue by about $7 million.
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