A new law will tax marijuana businesses without a presence in the city
This past Tuesday, San Francisco voters approved a measure that will provide a windfall to the city. The midterm elections have been relatively supportive of cannabis measures and San Fran was no different. Two-thirds of the residents agreed to the bill, which will see new marijuana businesses and businesses without a physical presence in the city forced to pay a new tax. Proposition D is expected to bring in as much as $10 million annually to the city’s coffers.
The new tax will be between 1% and 5% of gross receipts. It will be enacted as of the 2021 year and the money will go to the city’s General Fund. The tax revenue will be directed by the Cannabis Oversight Committee, a new entity that will fall under the guidance of the San Francisco Office of Cannabis. The committee will also be responsible for funding priorities for San Francisco’s marijuana industry.
According to Malia Cohen, the president of the Board of Supervisors and author of the bill, “Prop. D’s passage represents a significant boost to our Equity Program, to patient care, and to streamlining our permitting process for cannabis businesses. I look forward to continuing to work with business owners, with neighbors, with the medical marijuana advocates, and with our brothers and sisters in labor to stabilize the industry. With this support, every entrepreneur will have equal opportunity to access and benefit from cannabis legalization.”