2.11 21-0905 Subject: Requesting State Cannabis Cultivation Tax Reform
From: Vice Mayor Kaplan And Councilmember Gallo
Recommendation: Adopt A Resolution Of The City Of Oakland City Council Requesting State Cannabis Cultivation Tax Reform
Cannabis operators are placed in danger due to federal criminality of cannabis operations which results in the inability to use banks. The city of Oakland has a responsibility to protect small businesses, including cannabis operators. Illicit cannabis operations hold an advantage and there is no incentive for operators to do business legally due to the high tax-rate. It is unreasonable for law enforcement to recommend hiring private security to businesses they refuse to protect. Further, the city has a responsibility to promote equity and lowering the tax for smaller operations is a step in that direction.
Cannabis dispensaries in Oakland are asking for a 2 year exemption from the city's cannabis tax and state tax relief because of recent break-ins/robberies.
Please know I, and many of my friends and neighbors, are vehemently opposed to this proposal. It is ludicrous!
The cannabis firms chose to do business in Oakland, in a number of cases because other cities refused their entry. Other retail businesses in Oakland have faced losses over the years from break-ins, robberies and vandalism during riots. Should we retroactively give those businesses a tax break?
To take the cannabis lobby logic one step further, should every Oakland home owner or renter who has suffered physical damage and theft receive a tax break?
Regarding the cannabis tax break proposal, please vote against it. Not one cent. Tax revenue is needed to make our city leaner and safer.
Sincerely,
Brian Smalley
3450 Calandria Ave.
Oakland, CA 94605
The Governor's office has publicly acknowledged that cannabis cultivators are in crisis and that tax reform is vital. The LAO report even cites high taxes as the root cause of the illicit, unlicensed market thriving in California. The number of licensed operators has dropped form 16,000 to 10,000, costing the State millions of dollars. Many went out of business due to excessive tax burdens, but many went back to the illicit market. Rob Bonta carried a tax reform bill last year and it is vital that the legislature pass a similar bill this session.
Cannabis operators are placed in danger due to federal criminality of cannabis operations which results in the inability to use banks. The city of Oakland has a responsibility to protect small businesses, including cannabis operators. Illicit cannabis operations hold an advantage and there is no incentive for operators to do business legally due to the high tax-rate. It is unreasonable for law enforcement to recommend hiring private security to businesses they refuse to protect. Further, the city has a responsibility to promote equity and lowering the tax for smaller operations is a step in that direction.
Cannabis dispensaries in Oakland are asking for a 2 year exemption from the city's cannabis tax and state tax relief because of recent break-ins/robberies.
Please know I, and many of my friends and neighbors, are vehemently opposed to this proposal. It is ludicrous!
The cannabis firms chose to do business in Oakland, in a number of cases because other cities refused their entry. Other retail businesses in Oakland have faced losses over the years from break-ins, robberies and vandalism during riots. Should we retroactively give those businesses a tax break?
To take the cannabis lobby logic one step further, should every Oakland home owner or renter who has suffered physical damage and theft receive a tax break?
Regarding the cannabis tax break proposal, please vote against it. Not one cent. Tax revenue is needed to make our city leaner and safer.
Sincerely,
Brian Smalley
3450 Calandria Ave.
Oakland, CA 94605
The Governor's office has publicly acknowledged that cannabis cultivators are in crisis and that tax reform is vital. The LAO report even cites high taxes as the root cause of the illicit, unlicensed market thriving in California. The number of licensed operators has dropped form 16,000 to 10,000, costing the State millions of dollars. Many went out of business due to excessive tax burdens, but many went back to the illicit market. Rob Bonta carried a tax reform bill last year and it is vital that the legislature pass a similar bill this session.