Commercial Cannabis Taxation
Recommendation Report
Megan Hunter, Community Development Director
August 23, 2022
City Council
Background
• February 15th – Annual report on commercial cannabis industry presented to Council
• At meeting, business owners expressed concern about taxation rates for cultivation and manufacturing
• Council directed staff to hire a consultant to complete a recommendation report on taxation
• After conducting an RFP process, a resolution was approved to contract with SCI Consulting Group
• August 16th – Cannabis Subcommittee met to review report Discussion
SCI Group to present on Report
CEQA
Not a Project. The City of Salinas has determined that the proposed action is not a project as defined by CEQA Guidelines Section 15378 because the proposed action and this matter have no potential to cause any effect on the environment.
Fiscal and Sustainability
Impac
t
Business Type Base Year
2021
$10 sq ft/
3%
$8.50 sq ft/
2.5%
$7 sq ft/
2.5%
Cultivation $73,539 $49,026 $41,672 $34,318
Manufacturing $669,760 $401,856 $334,880 $334,880
Total Revenue $743,299 $450,882 $376,552 $369,198
Potential Loss N/A $292,417 $366,747 $374,101