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Desert Hot Springs moves to cut cannabis retail tax to 5% in first reading
Summary
The council introduced on first reading an ordinance to lower recreational and medical retail cannabis taxes from 10% to 5%; supporters from CV CAN urged the cut while one resident urged preserving 1% for small-business grants. The ordinance returns May 6 for final adoption.
The Desert Hot Springs City Council on April 15 introduced on first reading an ordinance to reduce the city's cannabis retail tax from 10% to 5% for both recreational and medical sales.
City staff said the ordinance implements council direction and amends Desert Hot Springs Municipal Code chapters 3.34 and 3.37 to lower both retail tax rates. "This proposed ordinance incorporates city council's direction," staff noted during the presentation.
Speakers from the Coachella Valley Cannabis Alliance Network voiced support. Jocelyn Kane, vice president of CV CAN, told the council she and the organization "strongly support" the retail tax reduction and noted the city would align with neighboring jurisdictions if it adopts 5%. Scott Russick, president of CV CAN, described the cut as "necessary, critical, required, timely" and urged council action to help keep jobs and businesses in the valley.
At least one resident asked council to consider retaining a portion of the revenue for local small-business grants. A resident commenter suggested holding back 1 percentage point to create about $120,000 to $150,000 annually for small-business support or homelessness programs and urged council to evaluate that option.
Council members moved to introduce the ordinance; the clerk recorded the motion passing and staff said the ordinance will return May 6 for the second reading and adoption.
