Local cannabis operators are asking San Luis Obispo County supervisors to hit the brakes on a planned cannabis tax increase, which would raise the county’s gross receipt tax from 6 to 8 percent starting July 1.
Industry members told the Board of Supervisors during its June 8 meeting that the tax hike would place an undue burden on the small number of licensed cannabis operators that are trying to find their footing in the market.
“The increased tax rate was supposed to grow with the industry, but the fact of the matter is this industry hasn’t been able to grow at all in this county,” said Austen Connella, CEO of Slocal Roots Farms.
SLO County’s cannabis tax automatically increases by 2 percent each year, to up to 10 percent, unless the Board of Supervisors delays it. As a neighboring comparison, Santa Barbara County’s current cannabis tax rates range from 1 to 6 percent on gross receipts, depending on the activity.
According to a SLO County cannabis program update, which is scheduled as an agenda item on the board’s June 22 meeting, there are 20 local cannabis projects permitted and operational in the county, including 10 grows and seven delivery services.
SLO County is projecting to receive $845,000 in local cannabis tax revenue in the next fiscal year. In contrast, Santa Barbara County is projecting $16.7 million.
Slow permitting, project-by-project environmental reviews, and appeals have kept the local industry in an infancy phase, Connellla said.
“It is my goal to keep our small family farm operating. It’s been a long and hard road,” he told the board. Δ
This article appears in Jun 17-27, 2021.
Los Angeles County is being asked to subsidize their “cannabis industry” which apparently is losing money. Perhaps we should also subsidize our “tomato industry,” or our “peach industry?”
Maybe there isn’t a massive market for the weed. Why government is getting deeply involved in it is curious.
My recollection is that if you are in the “liquor industry,” you pay relatively massive additional taxes, and regulatory fees to several oversight agencies. Perhaps the “cannabis industry” needs the same?
Oppose drug legalization.
Our local governments have become corrupted with the advent of a legal marijuana industry, and the FBI raided Adam Hill’s house for a reason. We now have a situation where the promised/expected tax revenue has not materialized and local taxpayers will not be subsidizing these drug dealers.
The legal marijuana industry should have to take out an indemnity policy, and they should have to pay for ALL addiction treatment for the druggies who need rehabilitation, as well as paying for the cost when workers go on long term unemployment as well.
Enough is enough, let’s send a message to our children that drug abuse is life abuse.
Theres no surprise that the notorious Central coast bigot Who masquerades as so-called Steve Edwards is pushing for marijuana re-criminalization. The following article will put his comments in proper perspective:
https://www.aclu.org/blog/criminal-law-ref…