San Francisco officials determined to carry off by one year the implementation of a new cannabis sales tax.
According to Legislation360, town’s Board of Supervisors unanimously accepted a delay of the new tax till the tip of 2021. The tax was slated to enter impact in January 2021.
The new tariff, accepted by voters in 2018, is a gross sales tax on all marijuana merchandise at 2.5% on gross receipts as much as $1 million and at a 5% charge on receipts past $1 million.
There’s additionally a separate tax for marijuana companies who absorb revenues from non-marijuana merchandise: 1% on revenues as much as $1 million and 1.5% on revenues above $1 million.
San Francisco Supervisor Rafael Mandelman advised the board he proposed the delay in implementation to provide cannabis firms some monetary reduction as a result of town has had a number of delays within the marijuana enterprise licensing course of.
He stated that when the tax was accepted by voters two years in the past, it was anticipated that way more companies could be operational by January 2021.
But town’s licensing of marijuana companies has been gradual up to now, with many operators needing as much as three years to navigate the method and open their doorways to shoppers.