Desert Hot Springs has become the latest city to give its cannabis industry a break by approving a temporary tax reduction on the cultivation rate charged to growers.
The city council voted 4-1 during its regular meeting on Tuesday evening, agreeing to slash taxes by 50% for the first half of this year.
Scott Rusczyk, who is a board member with the Coachella Valley Cannabis Alliance Network, applauded the decision, saying that high taxes have been strangling the cannabis industry.
“It is not, you know, a measure or a perspective of people being greedy people in the industry, the simple reality of it is they are struggling to stay alive,” he said. “This is a wonderful step in the right direction.”
The decision was made after city staff met with cannabis business owners who warned that they might have to cut staffing or even shut down due to the current tax rates.
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