--- title: California Cities Reduce Cannabis Taxes to Boost Businesses description: California cities that embraced the commercial cannabis industry are now revisiting tax rates in an effort to boost local businesses and to fight the black market. Some California cities are reducing tax rates or forgoing automatic raises including San Leandro, Benicia, Cathedral City, Monterey County, Redding, and Salinas. These cities are focused on attracting cannabis […] image: https://cdn.prod.website-files.com/66525ec138843cc1ccb1c325/68c301ebaa36be33aa2af8f7_1a3f16114a452999cc4d7d6b36ae1602_Obedio%20march%20of%20progress.png --- [Skip to content](https://hs.getobedio.com/blog/2020/02/19/2020-2-19-california-cities-reduce-cannabis-taxes-to-boost-businesses#main-content) [![Obedio logo with black text and an orange graphic composed of four circles and a diagonal arrow pointing up and right.](https://cdn.prod.website-files.com/66525ec138843cc1ccb1c325/66529844eddaa630d6da1b42_obedio%20gold%20for%20white%20background.png)](https://getobedio.com) [Team](https://www.getobedio.com/team) [Pricing](https://www.getobedio.com/pricing) [Contact](https://www.getobedio.com/demo) [Blog](https://www.getobedio.com/blog) [Login](https://obed.io/v4/login) California # California Cities Reduce Cannabis Taxes to Boost Businesses ![Susan Ameel](https://7528315.fs1.hubspotusercontent-na1.net/hub/7528315/hubfs/raw_assets/public/mV0_d-cms-elevate-theme_hubspot/elevate/images/avatar-placeholder.jpg?width=48&height=48&name=avatar-placeholder.jpg) Susan Ameel February 19, 2020 ![california-2798001\_1280.jpg](https://hs.getobedio.com/hubfs/Imported_Blog_Media/fc877-california-2798001_1280.jpg) ![california-2798001\_1280.jpg](https://hs.getobedio.com/hubfs/Imported_Blog_Media/fc877-california-2798001_1280.jpg) California cities that embraced the commercial cannabis industry are now revisiting tax rates in an effort to boost local businesses and to fight the black market. Some California cities are reducing tax rates or forgoing automatic raises including San Leandro, Benicia, Cathedral City, Monterey County, Redding, and Salinas. These cities are focused on attracting cannabis businesses that can quickly start operating and employ local residents. In December 2019, Salinas stopped a 2020 increase that raised the cultivation tax to $25 per square foot and the retail tax at 10%. The city was concerned that the increase would impact the viability of local businesses, and create a barrier to entry. Earlier this month, the Mendocino County Board of Supervisors voted to send a letter of support for AB 1948, which suspends California’s cultivation tax and to reduces the state excise tax from 15% to 11% until July 1, 2023. The county indicated in its letter that the tax relief would help the cannabis industry’s transition into a legal market. The county believes that the high-cost structure due to compliance, taxes and other costs provides the black market with a competitive advantage and that a temporary cut in taxes would help level out the playing field. The good news for the cannabis industry is that city and state officials are listening. Tax relief appears to be on the horizon at the state and local levels. ## Share this post [mailto:https%3A%2F%2Fhs.getobedio.com%2Fblog%2F2020%2F02%2F19%2F2020-2-19-california-cities-reduce-cannabis-taxes-to-boost-businesses](mailto:https%3A%2F%2Fhs.getobedio.com%2Fblog%2F2020%2F02%2F19%2F2020-2-19-california-cities-reduce-cannabis-taxes-to-boost-businesses) ## Keep reading ### [California Ballot Measure Local Municipalities California voters will decide 118 local tax measures and $8.07 billion in bond requests on November 3](https://hs.getobedio.com/blog/california-voters-will-decide-118-local-tax-measures-and-8.07-billion-in-bond-requests-on-november-3) ### [Local Ordinance Zoning Ordinance Development Data Federal Realty Asks La Mesa to Approve a 165,000-Square-Foot Bass Pro Shops Where Macy's Stood at Grossmont Center](https://hs.getobedio.com/blog/federal-realty-asks-la-mesa-to-approve-a-165000-square-foot-bass-pro-shops-where-macys-stood-at-grossmont-center) [![Obedio your municipal data source](https://hs.getobedio.com/hs-fs/hubfs/google%20workspace-1.png?width=100&height=41&name=google%20workspace-1.png "Obedio your municipal data source")](https://getobedio.com) Obedio's business intelligence platform provides data and insights from over 25,000 municipalities, enabling retail, manufacturing, finance, real estate, and government clients to make informed decisions, assess risk, and identify opportunities. **Data Source & Liability Disclaimer:** The data presented on this website is aggregated from various official government and public entities ("The Original Government Sources"). 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