The La Mesa City Council unanimously approved a 1% retail cannabis tax rate hike at a recent meeting, Documenter Alicia Bennett reports.
The tax applies to commercial cannabis businesses’ revenue and is not a sales tax on customers. The decision changes the tax rate from 4% to 5% effective Jan. 1.
In 2018, La Mesa voters approved a tax on marjuana businesses in 2018. The City Council is authorized to annually adjust the tax rates, though rate hikes are capped at a voter-approved 6%.
The city’s cannabis tax rate still falls below most in the county — the city of San Diego has the highest at 10% and Chula Vista, Encinitas and Vista are each at 7%. La Mesa met Oceanside, National City and Lemon Grove’s 5% tax, with only unincorporated San Diego County taxing at a lower rate of 2%.
The tax raise is expected to generate an additional $600,000 annually for general city expenses, such as police and fire, roads, and parks and recreation.
— Written by Brisa Karow, Documenter and freelance reporter