City and County Talk Pot Taxes
Set at 6 Percent Retail in City; County Goes to a Vote
After a successful lobbying effort by the cannabis industry, the Santa Barbara County supervisors voted 4-1 to place a cannabis tax structure on the June ballot that is considerably lower than previously discussed.
The decision means county voters must decide whether or not to approve a one percent to 6 percent tax on gross receipts at each step of the supply chain. In total, the county tax could not exceed 8 percent. (Cumulatively, county and state taxes are not expected to exceed 30 percent.)
This translates to $20 million to $40 million in county tax revenue, according to County Supervisor Steve Lavagnino, at a time when local governments throughout California are struggling with high employee pension costs. Santa Barbara County has a roughly $27 million deficit.
