LONG BEACH – Long Beach cannabis retailers owe the City millions in back taxes according to a recent report provided to the mayor and city council.
City Manager Thomas B. Modica provided the jarring report during the May 23 regular city council meeting which indicates more than half the amount owed is uncollectable.
According to the staff report, “On April 9, 2024, the City Council approved an ordinance amendment to reduce the cannabis cultivation and adult-use retail tax rate by one percent (or equivalent) and adopt a Pilot Tax Credit Program (PTCP). The cannabis tax rates were reduced from $14.96 to $13.09 per square foot under cultivation for cultivators and from eight percent to seven percent of gross receipts for adult-use retailers, upon the ordinance amendment taking effect. In addition to the one percent tax rate reduction, cultivators and adult-use retailers could apply for a three percent tax credit if they are in good standing and meet the eligibility criteria, for a combined four percent in tax relief.”…