Special Meeting: Cannabis Business Tax Rate - Monday, June 24th

The County of San Luis Obispo held a special meeting on June 24, 2024, to discuss the cannabis business tax rate for the upcoming fiscal year. The meeting focused on whether to allow the tax rate to increase from 6% to 8% as originally scheduled or to hold it steady. County officials and cannabis industry representatives presented data showing that maintaining the tax rate at 6% has correlated with increased tax revenues and supports local businesses, while raising it to 8% could force some operators to close or relocate to counties with lower rates. Several speakers urged the board to keep the rate at 6% to sustain the industry and encourage growth. The board voted unanimously to adopt a resolution to maintain the cannabis business tax rate at 6% for fiscal year 2024-25. The discussion also touched on the balance between tax revenue and enforcement costs, and the need for regulatory amendments and collaboration with law enforcement to support the industry.