Gay Desert Hot Springs

Tax break for ailing industry

Posted on April 6, 2023

In this week’s newsletter: Cannabis growers in Desert Hot Springs catch a break, crime is up slightly in Cathedral City, and more.

CVReporter.com BY THE REPORTER STAFF ● WEEKLY BRIEFING ● APRIL 5, 2023

Click HERE to read story on original site.

Welcome to Wednesday and happy Passover to all marking the occasion tonight.

Looking to give local cannabis cultivators some relief, the Desert Hot Springs City Council approved slashing taxes the city charges them for the first half of this year.

  • Councilmembers voted 4-1 during their regular meeting Tuesday evening to approve a temporary 50% tax reduction on the cultivation rate charged to growers.
  • The result will be more than $1.1 million in lost revenue, which will be made up for by dipping into the city’s Cannabis Emergency Reserve, which currently contains more than $5 million. 
  • The vote follows meetings staff held recently with several local cultivators who voiced concern over their ability to continue operation under current market conditions.
  • Bottom line: The vote came after a discussion of how best to help cannabis growers in the city in the long term. Staff noted that while the initial demand for cannabis-related development in the city was strong, the industry has experienced a lag in growth.