Stockton Council sets medical cannabis business tax rate at $50 per thousand dollars

The City of Stockton is poised to significantly increase its business license tax rate for medical cannabis businesses, following a recent council meeting that highlighted the financial implications of this decision. The proposed tax rate will rise from the current $25 per thousand dollars in gross receipts to a maximum of $50, a change approved by voters last year under Measure Q.

During the meeting, CFO Matt Paulin presented the rationale behind this increase, emphasizing the potential revenue boost for the city. With the addition of two more dispensaries and four cultivation sites allowed under Measure P, the city anticipates a substantial increase in tax revenue, which can be allocated to various unrestricted general fund purposes.

Public comments during the meeting included support for the tax increase from Bobby Bivens of the NAACP California State Conference. He urged the council to ensure diversity and equity in any review board related to cannabis operations and suggested that a portion of the tax revenue be dedicated to educational programs for youth.

Mayor Tubbs expressed his support for the tax hike but questioned whether the proposed rate was sufficient, noting the significant profits generated by cannabis businesses. The council's decision on the tax rate is expected to have a lasting impact on the city's finances and community programs, with further discussions anticipated in upcoming meetings.