Hoping to make it easier for companies that are behind on their taxes to pay, Desert Hot Springs will offer payment plans for some cannabis businesses and hotels. City officials have not said how many such firms are behind on taxes or how much the city expects to collect under the new system.
Cannabis business owners have expressed that they have been struggling financially due to a number of factors, including competition with a cheaper black market and high taxes. This led Cathedral City and Palm Desert to lower their cannabis taxes, and Desert Hot Springs to temporarily lower its cultivation tax for t he first six months of 2023.
But some cannabis businesses have closed or fallen behind on their tax obligations to Desert Hot Springs due to these financial burdens, said Interim Deputy City Manager Daniel Porras. He added some hotel owners have similarly fallen behind on paying transient occupancy taxes.
Source: Palm Springs Desert Sun
