SAN FRANCISCO (BCN) — San Francisco supervisors on Tuesday unanimously authorized an ordinance to droop town’s Cannabis Business Tax by way of the top of subsequent yr, in an try to curb unlawful marijuana gross sales.
According to Supervisor Rafael Mandelman, the laws’s writer, suspending town enterprise tax by way of Dec. 31, 2022, would assist help authorized hashish retailers as they wrestle to compete with illegally bought hashish.
San Francisco voters authorized the tax in Nov. 2018, which imposes a 1 p.c to five p.c citywide tax on gross receipts from hashish companies. The tax is about to enter impact on Jan. 1, 2022.
“Cannabis businesses create good jobs for San Franciscans and provide safe, regulated products to their customers,” Mandelman stated in an announcement. “Sadly, the illegal market is flourishing by undercutting the prices of legal businesses, which is bad for our economy as illegal businesses pay no taxes while subjecting workers to dangerous conditions and consumers to dangerous products. Now is not the time to impose a new tax on small businesses that are just getting established and trying to compete with illicit operators.”
Mandelman’s workplace pointed to a Dec. 19 report from the California Legislative Analyst’s Office that discovered that elevated state hashish tax charges had been straight linked to unlawful hashish gross sales. [Read More @ KPIX SF]