CannabisNews420.com – Cannabis/Marijuana Industry News
The report reveals
OAKLAND — Oakland’s small cannabis businesses will get a substantial tax cut after several entrepreneurs complained that the city’s previous rate was making it so only big companies could survive.
The City Council voted unanimously to lower the gross receipts tax on cannabis businesses that make $500,000 or less from 10 percent — one of the highest rates in the state — to 0.12 percent, or $1.20 for each $1,000. The new rate will be levied on businesses’ 2019 earnings, which will be paid at the start of 2020.
“We don’t want it to be an industry (with just companies) like Phillip Morris, or something. We want some grassroots production,” council member Rebecca Kaplan said at Tuesday’s meeting.
Council members will consider lowering the taxes for cannabis businesses that make more than $500,000 at a June 4 meeting.