Desert Hot Springs is planning to temporarily lower its cannabis cultivation taxes.
Business owners in the Coachella Valley and beyond have said the cannabis industry is struggling with high taxes, over-saturation, competition with the black market, and other issues. As a result, Cathedral City and Palm Desert both recently lowered their cannabis taxes, and Desert Hot Springs now appears to be following suit.
The city council voted 4-1 on Tuesday to support reducing its cultivation tax by 50% for the first six months of this year, with Councilmember Jan Pye dissenting. The tax, which is due in July, would go from $10.20 per square foot to $5.10 per square foot.
Councilmembers will vote on an ordinance to enact this change at their next meeting on April 18, according to City Attorney Jennifer Mizrahi.
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