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San Rafael cuts cannabis delivery tax to 1% for two years after business pleas
Summary
After public comment from delivery operators citing collapsing sales and state tax pressures, the council voted 5-0 to reduce the local cannabis delivery gross-receipts tax to 1% for Jan. 1, 2025–Dec. 31, 2026 (staff had proposed retaining 2%). Council members said the change balances support for local licensed businesses with voter intent under Measure G.
San Rafael —— The City Council on Feb. 18 voted unanimously to reduce the special local tax on cannabis delivery operators to 1% of gross receipts for a two-year period (Jan. 1, 2025 to Dec. 31, 2026), after hearing several delivery business operators plead for deeper relief.
Background: Measure G (approved by San Rafael voters in 2018) authorized the city to levy a special business tax on licensed cannabis businesses of up to 8% and to set different rates for different operators. The council previously reduced the delivery tax from the measure's initial 4% to 2% for calendar years 2023 and 2024. Greg Minor (Community & Economic Development) summarized staff's recommendation to extend…
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