San Diego

City Council

March 25, 2025 Item #52

Agenda Item 52

Item 52: Increase the Current Tax Rate for Cannabis Businesses in the City of San Diego,\nExcluding Cannabis Production Facilities, from 8% to 10%.\nTotal Estimated Cost of Proposed Action and Funding Source:\nAssuming taxable gross receipts remain consistent, the proposed tax rate increase would\ngenerate approximately $3.97 million in additional annual tax revenue.\nCouncil District(s) Affected: Citywide.\nProposed Actions:\nAdopt the following Ordinance which was introduced on 3/10/2025, Item S400 (Council\nvoted 8-1, Councilmember Foster III-nay):\n(O-2025-91)\nOrdinance amending Chapter 3, Article 4, Division 1 of the San Diego Municipal Code by\namending section 34.0112 regarding the City’s Cannabis Business Tax.\nCommittee Actions Taken: N/A\nOffice of the City Treasurer: Elizabeth Correia, (619) 236-7157\nCity Attorney Contact: David Powell