US (MA): Cambridge eliminates tax on adult-use cannabis

The Cambridge City Council unanimously passed a policy order repealing a three percent “Community Impact Fee” tax on adult-use in a recent meeting.

The policy order eliminated the tax, currently part of Massachusetts state law, in a move to “support the viability” of adult-use dispensaries in Cambridge, according to an early version of the policy order.

Though Massachusetts legalized adult-use cannabis in 2016 and Cambridge began issuing permits for adult-use dispensaries in 2019, retail cannabis shops have been slow to open. The city’s first adult-use dispensary, Yamba Market, will open to the public next week.

Sean D. Hope, a co-owner of Yamba Market, said that dispensaries are “not set up to be profitable” under the existing tax regime.

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