Santa Cruz weighs city cannabis tax overhaul

SANTA CRUZ — Acknowledging that a one-size-fits-all approach to taxing cannabis may have some flaws, the Santa Cruz City Council on Tuesday will consider lowering sales taxes enacted in December.

The city’s 8 percent cannabis tax rate, on top of state excise tax, cultivation taxes and the city’s normal sales tax, means some Santa Cruz businesses can be responsible for as much as a 38 percent tax rate — even before annual state licensing fees are calculated, according to a report to the City Council by Senior Planner Katherine Donovan. Studies and industry experts recommend that total taxes on marijuana be limited to no more than 30-35 percent, according to Donovan.

Source: Santa Cruz weighs city cannabis tax overhaul