Cannabis Tax Reduction
Summary
Desert Hot Springs just slashed its cannabis cultivation tax, which had been among Southern California’s steepest. That’s a win for growers facing high costs, but it also puts pressure on a city budget that has leaned on cannabis revenue.
At a glance
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Impact analysis
The cut could ease operating costs for growers and help keep cannabis businesses in town, but it likely means less tax revenue for city services unless new activity makes up the difference.
Cannabis growers and related local businesses get immediate relief, and the city may benefit if lower taxes keep cultivation and jobs in Desert Hot Springs.
City residents and departments that rely on cannabis tax dollars could feel the squeeze if the reduction creates a budget shortfall.
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