Revenues generated from the sale of recreational marijuana haven’t been anywhere near what forecasters had expected around the state of California. Now, in a bid to stay competitive with other cities in the Coachella Valley, Palm Springs has lowered and suspended a few of their taxes on the industry.
The Palm Springs City Council voted 3-1 to adopt a resolution that lowers the manufacturing tax rate from 10 percent to 2 percent, according to the Desert Sun. Taxes on on cannabis transportation, distribution and testing will be suspended.
Taxes on sales of recreational cannabis products will remain unchanged (I know, bummer, right?)
Voting against the resolution was, and this will surprise you, Mayor Buzzkill. Council member J.R. Roberts was absent from the meeting.
The city claims it has taken in $2.3 million in Cannabis taxes since the 2017/2018 fiscal year – with only $51,000 of that coming from manufacturing, transportation and distribution.