SAN DIEGO, CA – The San Diego County Board of Supervisors voted to adjust tax rates for existing cannabis businesses in the unincorporated area.
The action voted on only applies to the unincorporated area of the county, where five licensed cannabis businesses currently exist.
According to the City Council, the new tax will apply to both medical and recreational operations and will be calculated based on the type of cannabis business. Cultivation establishments will be taxed based on square footage of floor space and method of illumination, while all other types will be taxed based on a percentage of gross receipts.
Supervisors voted to impose a 2 percent tax on all retail sales of cannabis products in the unincorporated area.
In addition, the vote is one of the initial steps the County is taking to implement Measure A, which San Diegans approved during the November 8, 2022 election.
The next step is for the Board to finalize approval of the rates during a second hearing scheduled for late February. While the session is underway, cannabis businesses would apply the new tax in early April and begin paying the County in July.
The Board is expected to take further action later this summer, when Planning and Development Services and the Office of Equity and Racial Justice will present additional policy measures and proposed licensing requirements.
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