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Redding council trims proposed cannabis tax increases after hours of public comment; cultivation rate raised to $5/sq ft
Summary
After extensive public comment and debate, the Redding City Council approved a scaled-back increase in local cannabis taxes: cultivation tax from $3 to $5 per square foot, manufacturing/processing and related activities from 3% to 4% of gross receipts, and the initial retail rate from 5% to 6%. The measure passed 3–2.
Redding — The Redding City Council narrowly approved an increase in local cannabis taxes Wednesday after a lengthy public-comment period in which dozens of business owners, workers and consumers urged the council to reject larger hikes.
By a 3–2 vote the council adopted a resolution that raises the cultivation canopy tax from $3 to $5 per square foot, increases the manufacturing/processing/testing/storage/distribution tax from 3% to 4% of gross receipts, and raises the initial retail excise from 5% to 6% of gross receipts. Council debate and public testimony were driven by the city’s stated need to close a roughly $5 million budget shortfall.
Why it matters: The council’s action increases revenue earmarked for general city services — including public safety — but business owners and industry representatives warned the hike would push customers to neighboring jurisdictions or the unregulated market and could accelerate business closures and layoffs…
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