The San Diego City Council approved a reduction to some city cannabis taxes to encourage the opening of more indoor cannabis farms and factories that make cannabis edibles.
The council voted 6-3 to shrink the tax rate on production facilities from 8 percent to 2 percent. San Diego’s two dozen dispensaries will continue to pay the 8 percent rate.
Supporters said San Diego’s tax rate on cannabis production facilities, which is among the highest in the state, is discouraging those businesses from opening in the city.
Only 19 of 40 city-approved production facilities have opened, creating a gap in the local supply chain that forces some local dispensaries to truck their cannabis into San Diego from elsewhere.
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