During Tuesday’s regular meeting, the Redding City Council will consider a more than 3 fold increase in the tax charged to commercial indoor cannabis cultivators. Currently the city levies a business tax of $3 per square foot of cultivation area. The proposal would boost that to $10 per square foot. It’s estimated that the increase would provide an additional $700,000 to $1.3 Million of funding into city coffers. A separate proposal would be to raise the retail cannabis tax from the current 5% up to 10%. That’s in addition to the regular sales tax. The council is trying to resolve a $5 Million budget deficit, which is mostly due to an unexpected drop in general sales tax revenue.
-Steve Gibson