Stockton City Council debates cannabis tax rate amid Measure B changes

The City of Stockton has taken a significant step towards regulating cannabis businesses by approving an increase in the business tax rate during a recent council meeting. The council voted 5 to 2 to raise the tax from the current rate of $25 per $1,000 of gross receipts to a range between $35 and $50 per $1,000. This decision aligns with similar measures taken in other California cities, such as Oakland and Santa Barbara, which have implemented higher tax rates for medical and recreational cannabis.

The discussion highlighted the need for a structured approach to cannabis taxation, especially following the passage of Measure B, which impacts local cannabis regulations. Community Development Director David Quang emphasized the importance of clarity in the existing ordinance and the processes involved in regulating cannabis businesses.

In addition to the tax increase, the council opened a public hearing to further discuss an urgency ordinance amending the Stockton municipal code related to medical cannabis businesses. This ordinance aims to streamline the regulatory framework and ensure compliance with state laws.

The council's decision is expected to generate additional revenue for the city while also establishing a more robust regulatory environment for cannabis operations. As Stockton moves forward, the implications of these changes will be closely monitored by both city officials and community stakeholders.