Desert Hot Springs, long known as a hub for cannabis in the Coachella Valley, is making a dramatic move to help struggling dispensaries - cutting the city's cannabis tax from 10% to 5%.
The proposal for the tax cut came as local cannabis businesses face rising pressure from high taxes, the illicit market, and dispensaries on tribal land that don't face the same tax requirements.
"They struggle as every business does, you know, up and down," Mayor Matas explained. "But for the most part, it stays strong. And, we have 5 or 6 that have been in business since day one, and they continue to be in business. And we want to make sure that we're there to support them."
At Tuesday's city council meeting, Council members had the first reading of the ordinance that outlines the proposed tax cut. The Council voted unanimously to pass the ordinance pending a second reading and final adoption of the ordinance on May 6.
Read more at KESQ