During a recent city council meeting, significant concerns were raised regarding the impending increase in cannabis taxes in California. A representative from Cloverdale's cannabis industry highlighted that the state plans to raise the cannabis sales tax by 4% starting next year, bringing the total tax burden to 32.25%. This increase comes at a time when cannabis sales in California have already declined by 20% over the past two years, with many businesses struggling to remain profitable.

Currently, Cloverdale has six cannabis businesses, but only three are subject to the excise tax, which applies to retail operations. The representative emphasized that the cannabis market is facing a crisis, with over 15% of dispensaries in California having closed down and a significant portion of sales now occurring in the black market. The speaker urged the city council to advocate for a reconsideration of the proposed tax increase, arguing that it would further harm legal cannabis businesses and potentially lead to increased city tax revenues if the industry stabilizes.

In addition to the cannabis tax discussion, the council reviewed various correspondences, including survey results related to local parks and property tax inquiries. The meeting proceeded with the approval of the consent calendar, which included routine city business items.

The council's response to the cannabis tax concerns and the broader implications for local businesses will be closely monitored as the state moves forward with its tax policy changes.