The City of Adelanto voted to reduce the tax on transportation, distribution, manufacturing, and cannabis testing lab services from 5% down to 1%.
The city also agreed to reduce the cultivation tax from $5 per month per square foot to $5 per year per square foot. Likewise, the dispensaries tax was reduced from 5% down to 3%.
The decision comes in line with California voting to reduce the cannabis cultivation tax statewide. The reduction in city taxes will be a positive shift for cannabis businesses operating in Adelanto, according to Lifestyle Delivery.
Commenting on the move, the company’s CEO Brad Eckenweiler stated that the steps by the Adelanto City Council “were evidence of the city’s commitment to a strong and sustainable Cannabis business community here in Adelanto.”
“The City isn’t alone in its proactive moves to protect the legal cannabis market and its customers. The State of California is also lowering taxes to reduce the illegal, unregulated, contaminated, and pesticide-ridden grey market products, which have had price advantages due to the higher taxes,” Eckenweiler added.