Cannabis retailers will pay three per cent on gross earnings, manufacturers only one per cent

ADELANTO, CALIFORNIA (NEWS 1130) – As British Columbia municipalities continue to wrestle with their approaches to recreational marijuana sales, one California town is going whole hog.

Adelanto city council just voted to dramatically reduce taxes on recreational cannabis.

“It almost gives them no option but to come here when there’s other places that have taxes at 14 and 15 per cent,” says Stevevonna Evans, the assistant mayor in Adelanto.

Cannabis retailers will pay three per cent on gross earnings, manufacturers only one per cent.

“We wanted to dominate the industry,” says Evans.

When given the opportunity to simplify and slash taxes on cannabis businesses, council jumped on it, planning to dominate the California weed market. It’s a symptom of a city looking for a new economy.

“We were about $3 million in the red and they saw this as an opportunity to get out of the red and into the black, so that’s what got us into the industry,” she says. “The only other industry that we have here right now is the prison, jail industry.”

She says her town relies on limited jobs at three nearby penitentiaries and has struggled to raise enough tax revenue to operate in the past. And city council is hoping cannabis is the answer.

“Cannabis operators – not only do they pay their taxes, but they’re also giving back to the city in many other ways. They are definitely stepping up.”