Desert Hot Springs is giving local cannabis cultivators a tax reduction for the first six months of the year.
The Desert Hot Springs City Council approved an ordinance that temporarily lowers cultivation taxes by 50% with a 4-1 vote on Tuesday. Councilmember Jan Pye was the dissenting vote. The council had voted in support of this temporary reduction earlier this month, with Pye again being opposed. It was brought forth as an ordinance to be able to enact a change in the tax rate.
Cultivation taxes are due in July and will be lowered from $10.20 per square foot to $5.10 per square foot. It is expected to cost the city $1,167,892 in revenue, but this loss will be covered by a balance of over $5 million in the city's "Cannabis Emergency Reserve."
Cannabis business owners have shared a number of issues ailing the industry, including competition with a cheaper black market and high taxes. Other Coachella Valley cities like Cathedral City and Palm Desert recently lowered their cannabis taxes as a result.
Read more at desertsun.com