New exemptions apply only to cultivators
Cannabis businesses in Cathedral City have been pleading with the city to lower their taxes, arguing that the high costs make it difficult to operate in a struggling market.
Last week, the city council approved two cannabis tax exemptions, but some in the industry aren’t convinced they’re big enough to make a difference.
Cannabis makes up a decent chunk of Cathedral City’s revenue: Cannabis businesses paid the city around $4.97 million in taxes last year. These taxes include a 10% retail tax on gross proceeds, a cultivation tax of $15 per square foot of a facility and a manufacturing tax of $0.05, $0.10 or $0.40 per gram depending on the type of product.
But the tax exemptions approved Wednesday will only affect cannabis cultivators.
Article by: Ani Gasparyan
Palm Springs Desert Sun
USA TODAY NETWORK