Cannabis Knowledge & Insights

Weekly Cannabis Licensing Update – June 3

This week brought some big news updates from Los Angeles, Coachella, Adelanto, and San Jose. Check out these recent city council decisions concerning cannabis taxes and business licenses.

Los Angeles, California

The Los Angeles City Council released some guidelines and new deadlines for applicants interested in participating in the Social Equity Program (SEP). DCR will be accepting SEP verification applications from May 28 until July 29, 2019. SEP applications will be eligible to participate in priority processing of LA’s Phase 3 retail and delivery licensing window.

To be considered under the Social Equity Program, and to apply for priority processing, you must complete the verification process first. This verification will also come into play when the city determines eligibility for property assistance, the fee deferral program, and other aspects of LA’s social equity benefits. Verification is free and applications will be approved on a rolling basis – don’t hesitate to get your Eligibility Application in! Click here to access the Accela Citizen Access portal.

In addition, the DCR is hosting a second Phase 3 Retail and Delivery Licensing workshop on Wednesday, June 5 from 6PM – 8PM. We will be attending this meeting to provide guidance and technical assistance to prospective applicants. Space is limited – we hope to see you there! Please RSVP here and get in touch with our experts if you want to meet us.

Coachella, California

Big news out of Coachella: the City Council approved Ordinance 1140! 

That means there are 10 retail licenses coming online for the city of Coachella, as well as five dispensaries in Pueblo Viejo and four additional dispensaries within three nearby commercial/industrial sectors. One dispensary may also be approved at the southwest corner of Avenue 48 and Grapefruit Boulevard.

More news to come on the application process and how you can get ahead of the competition!

San Jose, California

San Jose’s City Council added new tiers to the cannabis business tax structure applying to cannabis operators in their jurisdiction.

The city is reducing their original 10% cannabis tax to the following tax rates, starting on July 1, 2019:

  • Cannabis cultivation tax: 4% of gross receipts
  • Cannabis manufacturing tax: 3% of gross receipts
  • Cannabis distribution tax: 2% of gross receipts
  • Cannabis lab testing tax: 0% of gross receipts

This is good news for cannabis operators in San Jose!

Adelanto, California

Adelanto’s City Council also adopted an ordinance lowering the district’s cannabis tax rates. The City Council adjusted the maximum tax rate originally set by Ordinance No. 594 downward.

These new tax rates will take effect 30 days after the final passing of the new Ordinance.

  • Cannabis cultivation tax: $0.415 per square foot
  • Cannabis retail tax: 3% of gross receipts
  • Cannabis special events tax: 3% of gross receipts
  • Cannabis manufacturing tax: 1% of gross receipts
  • Cannabis testing tax: 1% of gross receipts
  • Cannabis distribution tax: 1% of gross receipts

These new tax rates will take effect 30 days after the final passing of the new Ordinance.

If you have any questions about these updates, or want to meet us at the LA Social Equity workshop, get in touch by clicking the “Get Started” button below.