During a special meeting on June 24, the San Luis Obispo County Board of Supervisors voted to halt a cannabis tax increase for the county. The board voted to keep the tax at 6 percent rather than increasing to 8 percent. The tax was originally scheduled to increase starting July 1.
When implemented, the Cannabis Business Tax was meant to increase by 2 percent every year for businesses located in unincorporated areas of the county. During public comment, Shawn Bean, owner of The Source, a local cannabis delivery company, said his business would struggle if the tax were to increase.
"A lower tax rate allows entrepreneurs like myself to hire more people, do more business, invest back into the company," said Bean. Other cannabis business owners who came to the meeting echoed Bean's notion that the tax increase would severely hurttheir businesses.
Local business owner Steven Herring said, "It's no secret that the cannabis market has been devastated and the sales prices have been cut in half since 2018 … going to 8 percent will definitely tax multiple businesses out of existance, especially the farms."
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