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Desert Hot Springs reduces cannabis cultivation tax, which was among the highest in SoCal

An artist’s rendering of a portion of the Coachillin’ Canna-Business Park, being built in Desert Hot Springs. Credit: Coachillin’ Facebook

Desert Hot Springs officials have voted to lower the city’s cannabis cultivation tax rate in an effort to keep the city’s competitiveness as the cannabis industry expands throughout California.

It was one of the first cities in California to allow medical marijuana cultivation within its limits, but other cities, offering lower tax rates, have since opened their borders to the  cultivation industry.

Desert Hot Springs’ current tax rate is $25.50-per-square-foot for the first 3,000 square feet, then $10.20-per-square-foot for each square foot over 3,000 square feet. Its $25.50 rate is among the highest in Southern California.

City Council approved a Cannabis Strategic Plan in March 2019, which outlined the city’s goals regarding cannabis cultivation. These goals include creating a business-friendly image and maintaining its competitiveness.

In June 2020, council members directed city staff to create a Cannabis Task Force made up of industry stakeholders, residents, and city staff to review the Desert Hot Springs’ tax competitiveness.

On Tuesday, the task force presented its recommendations during Desert Hot Springs City Council’s regular session.

To Read The Rest Of This Article By Erin Rode on Desert Sun

Published: February 05, 2021

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