A special meeting was held to discuss the cannabis tax rate and the impact on the industry
SAN LUIS OBISPO — The Board of Supervisors held a special meeting on Friday, Jun. 25, at 8:30 a.m. to discuss the cannabis tax rate and decide whether or not to hold the rate at the current six percent or increase it to the proposed eight percent.
The special meeting was held as the rate would have to be voted on before Jul. 1 in order to change the rate and the next regular meeting is not scheduled until Jul. 13
Measure B-18 was on the ballot in June of 2018 and passed with a 76 percent vote in favor of authorizing San Luis Obispo County to impose a tax on gross receipts of marijuana business beginning at 4 percent and increasing annually to a maximum of 10 percent for general revenue purposes. However, many in the industry called in the regular meeting to suggest holding the rate, as those in the industry have not had sufficient time to operate due to slow legislative processes approving cannabis businesses operations.
The Board approved the special meeting to discuss the tax rate increase. Supervisor Debbie Arnold was in favor of increasing the tax rate as the bill proposed as the public had voted on this measure, and that was their direction. Additionally, the cannabis industry reports that had been presented had done so with estimates on the increased tax rate and would be impacted negatively if the rate was held at six percent.
Overall the supervisors were in favor of holding the rate and allowing the industry more time to solidify their businesses before increasing the rate, and the vote passed 4-1.
The next regular meeting of the Supervisors will be held on Jul. 13 at 9 a.m., and links to the meeting can be found on the district website.