Cannabis taxes in Long Beach will be reduced by 1%, and businesses may be able to receive an additional 3% reduction, the city of Long Beach has announced.
The 1% cannabis tax reductions will apply to cultivation and adult-use cannabis retailers. This reduction went into effect on May 24.
Businesses will have the additional opportunity to apply to the Pilot Tax Credit Program to receive an additional 3% cannabis tax reduction.
In order to apply, cannabis retail businesses must be “in good standing” and satisfy the following criteria provided by the city of Long Beach:
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- Hire employees locally
- Pay 80% of employees 115% or above the state minimum wage, and the rest of the employees 110% or above the state minimum wage
- Proof of participation in a High Road Training Partnership
- Present proof of participation in a High Road Training Partnership
- Either have 15% of their products on display be from an equitable distribution, or provide 50 hours minimum per year of incubation support to equity businesses
- Submit official payroll records and EDD’s DE9 and DE9C quarterly
Businesses on Special Circumstances Payment Plans may also be eligible after six months of proven payments, and the following documentation is required:
- Quarterly or annual taxes
- Gross receipts reports
Prior to this cannabis tax reduction, Long Beach charged a 6% excise tax on medical cannabis purchases and an 8% tax on recreational purchases. These taxes are additional to the city’s regular sales tax of 10.25% and the state’s 15% excise tax.
The Long Beach City Council will require all cannabis tax reductions to be passed onto customers.
These tax reductions come as an effort to “stimulate growth in the local cannabis industry and promote community,” according to a press release provided by the city of Long Beach.
