US: Cathedral City slashes Cannabis taxes in attempt to help ailing local industry

Cathedral City is slashing its cannabis taxes in order to provide financial relief to local businesses.

Cannabis business owners have pleaded with the city to lower their taxes for some time, arguing that the high costs are crushing them on top of competing in an overly saturated market and against a cheaper black market. The city held several meetings on the topic dating back to September 2021, but the City Council mostly avoided making any major changes to avoid losing out on city revenue.

Until Wednesday, when the council unanimously voted to lower its cannabis retail, cultivation, and manufacturing taxes. The vote comes around a month after council members indicated support for lowering these taxes during a study session.

The city's cannabis retail tax will be cut in half from 10% to 5%, the cultivation tax will be cut from $15 per square foot to $10 per square foot, and the manufacturing tax will be cut from between 5, 10 or 40 cents per gram depending on the type of item to 5 cents.


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