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Supervisor Mandelman seeks another year without city cannabis gross‑receipts tax
Summary
Supervisor Rafael Mandelman introduced an ordinance to suspend San Francisco’s cannabis gross‑receipts tax through Dec. 31, 2022, and asked the Controller to analyze local sales data and recommend a rate for implementation in 2023.
Supervisor Rafael Mandelman introduced an ordinance Nov. 2 to suspend the city’s cannabis gross‑receipts tax for the 2022 tax year, repeating a suspension the board approved for 2021. Mandelman said the suspension is intended to protect a young retail industry that continues to face strong competition from a large illicit market and heavy state and federal tax burdens.
Mandelman noted national and state reporting showing the scale of California’s illicit cannabis market and said he had asked Controller Ben Rosenfield, the Treasurer‑Tax Collector, the Office of Cannabis and the Cannabis Oversight Committee to analyze several years of local gross receipts data. He requested recommendations on a reasonable tax rate and structure for a local gross‑receipts tax that could be implemented for the 2023 tax year if the board decides to do so.
Mandelman said additional state or federal relief — including any reconsideration of state excise tax or federal income‑tax treatment for cannabis businesses — could change local decisions. He thanked staff and Office of Cannabis personnel for consulting on the measure. The ordinance was introduced and will be referred for further committee consideration.
