San Diego’s Board of Supervisors voted to decrease tax charges for hashish outlets within the county to permit companies to compete with these in neighboring cities, reported San Diego Union-Tribune. Following a 4-1 board vote, the tax measure can be imposed on 5 present authorized marijuana operations and any others opening their doorways.

“As we set these {dollars} which can be collected, I do assume they need to be benefiting the communities that they’re in,” stated Jim Desmond, one of many supervisors. “County code permits for consumption or smoking and tasting rooms on website. If persons are getting excessive and driving on winding roads (which can be) dimly lit within the unincorporated space, that’s an even bigger downside.”

Board chair Nora Vargas proposed taxing crops by sq. footage reasonably than income, which might extra predictable value for hashish enterprise house owners, she stated. 

Beneath the brand new system, marijuana operations (in unincorporated county areas) would pay as much as $7 per sq. foot for cultivation, 2.5 p.c for manufacturing, 1 p.c for testing, and a pair of p.c for distribution and gross receipts of retail gross sales, per the native information outlet. 

Whereas some marijuana operators stated that even the lowered tax charges are too excessive, others stated that to cowl prices (together with regulation enforcement, public well being, and the impression of market competitors) the board ought to set up larger tax charges.

What’s Subsequent?

On February 28, the board will vote on whether or not or to not authorize the hashish tax ordinance. If authorised, the tax will go into impact on April 1, with the primary funds due in July.

In 2022, Gov. Gavin Newsom signed Meeting Invoice 195 which eliminates the state marijuana cultivation tax. A research carried out that 12 months highlighted the impression a right away elimination of the cultivation tax would have on vital points going through the state’s authorized hashish market from seed to sale. The state may enhance authorized hashish gross sales and herald 123% extra in whole month-to-month cannabis-related tax income by 2024 by eliminating its cultivation tax, in response to the research.

The Benzinga Hashish Capital Convention Is Again!

Probably the most profitable hashish enterprise occasion on the earth, the Benzinga Hashish Capital Convention returns to Miami for its sixteenth version. That is the place the place DEALS GET DONE, the place cash is raised, M&A begin, and corporations meet traders and key companions. Be part of us on the Fontainebleau Miami Seaside Lodge in Florida on April 11-12. Don’t miss out. Safe your tickets now. Costs will surge very quickly.

Picture Credit: greenserenityca by Pixabay Edited By Benzinga