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Desert Hot Springs council directs staff to draft ordinance to cut retail cannabis sales tax to 5%
Summary
After a staff report and industry testimony, the Desert Hot Springs City Council voted unanimously to direct staff to return with an ordinance to reduce the city's cannabis retail sales tax from 10% to 5%; staff warned that a cut could cost the city an estimated $600,000'$750,000 annually in the near term.
The Desert Hot Springs City Council on April 1 voted unanimously to direct staff to prepare an ordinance that would reduce the city's cannabis retail sales tax from 10% to 5%.
City staff presented background on the local cannabis market and a fiscal analysis. "Staff recommends that the city council consider lowering the cannabis sales tax rate from 10% to 5%," said Miss Newsom, summarizing a multi-year revenue trend that showed retail cannabis tax receipts falling from about $1.5 million last year to a projected $1.2 million this year. She said halving the local rate would cut annual local revenue by an estimated $600,000 to $750,000.
City Manag…
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