Berkeley lowers pot tax to 5 percent after complaints of customer ‘sticker shock’

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Rashad Sisemore/File

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Weeks after the legalization of recreational marijuana in the state of California, the city of Berkeley voted to reduce the sales tax on recreational marijuana from 10 to 5 percent.

At its regular meeting Tuesday night, City Council voted to pass the ordinance proposed by Mayor Jesse Arreguín. This change comes after the recommendation from the city’s Cannabis Commission to reduce the adult-use marijuana tax rate and complaints of customer “sticker shock” from Berkeley cannabis business owners.  

Several cannabis business owners said the new tax rate will help keep their businesses in Berkeley as opposed to forcing them out to other Bay Area cities, such as San Francisco, where the tax rates are lower than 10 percent.

 

 

 

 

Contact Malini Ramaiyer and Rachael Cornejo at [email protected].