California – Costa Mesa Approves Ordinance Lowering Business Tax on Legal Marijuana

Costa Mesa has approved an ordinance that will reduce a business tax on all legal marijuana operations established in a city measure approved by voters in 2016.

The City Council voted 4-2 in mid-March to give final approval to the law that will reduce a 6% gross receipt tax to 1% on all distribution, manufacturing, research and development of legal marijuana, and will eliminate the tax for testing. 

Currently, a city staff reports suggest that while over 20 businesses have received permits to operate, only eight manufacturers and distributors are active in the city due to financial burdens posed by local, state and federal taxes. This new ordinance will greatly reduce a burden placed on cannabis industry operators in Costa Mesa.

The law goes into effect April 16.

For more information visit:

voice of oc
By: bruno D. SOlis
April 14, 2020