Costa Mesa Cuts Cannabis Business Tax More Than Expected

When we mention taxes on cannabis businesses in California, the news is rarely good. But, according to an article in the Los Angeles Times, the City Council of Costa Mesa, CA surprised marijuana business owners there on March 4, by lowering the gross-receipts tax by more than cannabis industry leaders expected.

Costa Mesa’s City Council voted Tuesday to lower the gross-receipts tax on cannabis product manufacturers, distributors and processors from 6% to just 1% – better than the 2% cannabis industry insiders had expected. Additionally, the council voted to remove the tax from testing laboratories altogether.

Prior to the vote, cannabis industry representatives had spent about an hour convincing the City Council of the benefits of lowering the tax. Cannabis leaders said the change could mean the difference between cannabis businesses opening in Costa Mesa or somewhere else in the state.