Taxes are high in LA. So to help combat the issue, the county is… raising taxes.
But it’s a little more complicated than that. Because of the high taxes on all cannabis sales, an illicit, unlicensed market has prospered. This new taxes is targeted at the unlicensed shops to attempt to reduce the gap in prices between legal and illegal shops.
The question of whether or not to tax unlicensed dispensaries was left to voters this month, and 72% of the city approved the measure. Unlicensed dispensaries are now required to pay the 10% city business tax.
So while it seems a little absurd to be adding any more taxes to the revenue stream of cannabis dispensaries, who are hanging on by a thread in the city, this 10% has the potential to help out the businesses doing things the right way.
The new tax is projected to bring in between $30 and $35 million for the city.
Read the original article at Ganjapreneur.
