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8.A. - Page 13 <br />cash. The operators felt that most operators could pay City fees and taxes by check to <br />avoid incurring cash handling expenses for the City. <br />Finally, the operators were concerned about over -taxing the cannabis business and <br />making legal cannabis uncompetitive with illegal cannabis. As outlined in the table <br />below, the cumulative taxes on cannabis through all phases of production, including <br />local sales tax, is about 24%. <br />Based on the experience in Colorado, this leaves room for limited local taxation, as data <br />from Colorado suggests that cumulative taxes beyond 25-30% made legal cannabis <br />uncompetitive with illegal cannabis, and would drive consumers to the black market. <br />Cumulative Cannabis Taxes <br />C'iilti�;.ati•-•n T.ax i.5.i <br />State Ex:ise Tax (15%) <br />Sal es Tax -State General Fund <br />Feedback from Communitv Outreach Conducted <br />JesTax - La:al Publi: <br />Safety Fund <br />Sales Tax - La:al <br />Revenue Fund '13-6—:.) <br />Sales Tax - C•c•unty <br />rransp•. Fund (.25`;>i <br />>alesTax - City/C•c•unty <br />i�•s. Fun•d N..,. <br />�lesTax - C•c•unty <br />tri :t Taxes (1.50 1); <br />City staff conducted a variety of community outreach activities following the June 26 <br />City Council meeting on cannabis. <br />City staff presented this item at a Redwood City Chamber of Commerce meeting. <br />During the Chamber meeting, members discussed the need to have responsible <br />property owners at locations where a cannabis business might locate, in addition to <br />providing regulations and responsibilities for the business owners. They also had <br />questions about where a business might locate in the City, the types of licenses <br />available and the types of taxes cannabis businesses might generate. Since regulating <br />adult use cannabis is so new, the audience at the Chamber meeting, like audiences at <br />13 <br />