San Diego, CA
San Diego increases retail cannabis tax rates from 8 to 10%
The San Diego City Council Monday voted to increase the tax rate for cannabis businesses from 8% to 10% as the city faces a looming budget deficit.
The move will go into effect on May 1 and generate an estimated $3.97 million for the city if gross receipts remain the same. That is not a sure thing, however, as people buying products could shift their money elsewhere.
“It sounds like folks are going to stop buying here and turn to another source,” Councilman Kent Lee said. “It is estimated to generate just shy of $4 million. It will likely be less than that.”
Lee, along with seven of his colleagues, approved the tax hike. Councilman Henry Foster III was the sole no vote.
Members of the United Food and Commercial Workers Union spoke about the illicit market and declining sales already hurting the industry. Others who spoke suggested allowing on-site consumption at existing cannabis businesses.
San Diego’s Independent Budget Analyst Charles Modica did note that the city’s tax revenue from the industry had been declining since the pandemic, only offset by the addition of new businesses.
In 2016, voters in the city approved Measure N, which imposed a gross receipts tax of 5% on all non-medical cannabis businesses but also stipulated the tax cannot exceed 15%. This initial rate was later raised to the current 8%.
In 2022, an ordinance reduced the tax rate for cannabis production facilities to 2%. Monday’s item would not change the rate for these businesses.
Excluding the cannabis production facilities, 27 cannabis businesses operate in the city. During the last fiscal year, they generated $15.87 million in special cannabis taxes.
Cannabis retail sales are assessed a 15% state excise tax, 7.75% sales tax, and the current local cannabis tax rate of 8%, resulting in a total markup of 31.75%.
Other large west coast cities such as Los Angeles and San Jose have a 10% cannabis business tax rate. San Francisco is between 2.5%-5%, depending on overall gross receipts. For local cities, Chula Vista, Encinitas and Vista all have rates of 7%, while Oceanside and Lemon Grove are at 5% and La Mesa at 4%. The only real outlier is San Diego County’s unincorporated areas, which have a cannabis business tax rate of 2%.
Council President Joe LaCava said the council was not singling out the cannabis industry, rather bringing it consistent with other jurisdictions in the state.
San Diego, CA
City considering cutting funding to resource center for those experiencing homelessness
Last week Mayor Todd Gloria released the budget proposal for the 2027 fiscal budget. Protected homeless services is among his top priorities mentioned in the proposal. However, some of the reductions he’s proposing could impact thousands of San Diegans experiencing homelessness.
Located on 17th and K Street, the Neil Good Day Center offers an array of services to nearly seven thousand people experiencing homelessness. The services include giving them a place to shower and do laundry, and connecting them to a case manager, among others.
“These are critical services that are helping people off the streets, but really better their lives and their health and their employment situation as well,” Deacon Vargas with Father Joe’s Villages said.
Deacon Jim Vargas heads Father Joe’s Villages, which runs the center. He said through their prevention and diversion strategies, they’ve managed to keep nearly one thousand individuals from falling into homelessness.
“So by helping them pay rent, or helping them with their utilities, or helping them to reunite with family,” Vargas said.
Right now, the city allocates at least $850,000 per year to the Neil Good Day Center, according to Vargas.
But the future and funding for these services are in limbo because of Mayor Todd Gloria’s proposed budget cuts.
“The impact to those whom we’ve been serving the Daily Center would be very severe,” Deacon Vargas said.
In a statement to NBC 7, Mayor Todd Gloria said in part, “We must find more efficient and cost-effective ways to address this crisis and prioritize funding for programs that provide shelter beds and maximize resources to programs that place people into permanent housing.”
Since it’s still at a proposal stage, Deacon Vargas said it’s unclear how the city will decide to move forward.
However, Deacon Vargas said services would be significantly reduced because they would be forced to operate solely on a budget of about half a million dollars they receive from philanthropy.
“The hours would be cut. Some days would be cut. We would have showers that might be impacted because they’re given seven days a week and we’d close two days a week, then the showers would be five days a week, the case management,” Deacon Vargas said.
Deacon Vargas is certain of one thing.
He would like to continue offering services at the Day Center, even if the city goes through with the funding cuts.
“As we work with individuals at the Day Center and at Father Joe’s Villages, the community becomes healthier as a result of it,” Deacon Vargas said.
The budget also recommends additional cuts to homeless services, but does not give specifics as to where those cuts would be.
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San Diego, CA
Solans, Luna, Guilavogui help RSL beat slumping San Diego, extend unbeaten streak to 6 games :: WRALSportsFan.com
SANDY, Utah — SANDY, Utah (AP) — Sergi Solans had two goals and an assist, Diego Luna added a goal and two assists, and Real Salt Lake beat San Diego FC 4-2 on Saturday night to extend its unbeaten streak to six games.
Morgan Guilavogui scored his first goal in MLS and had an assist for Real Salt Lake (5-1-1). The 28-year-old designated player has five goal contributions in his first six career games.
RSL hasn’t lost since a 1-0 defeat at Vancouver in the season opener.
San Diego (3-3-2) has lost three in a row and is winless in five straight.
Luna opened the scoring in the fifth minute when he re-directed a misplayed pass by Duran Ferree, San Diego’s 19-year-old goalkeeper, into the net.
Moments later, Solans headed home a perfectly-placed cross played by Luna from outside the right corner of the 18-yard box to the back post to make it 2-0. Solans, a 23-year-old forward, flicked a header from the center of the area inside the right post and past the outstretched arm of Ferree to make it 3-1 in the 37th minute.
Guilavogui slammed home a first-touch shot to give RSL a three-goal lead in the 45th.
Marcus Ingvartsen scored a goal in the 14th minute and Anders Dreyer converted from the penalty spot in the 66th for San Diego.
Ingvartsen has five goals and an assist this season and has 10 goal contributions (seven goals, three assists) in 16 career MLS appearances.
Rafael Cabral had three saves for RSL.
Ferree finished with five saves.
___
AP soccer: https://apnews.com/soccer
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