Cannabis Business Tax, Measure B-18

Frequently Asked Questions

If approved by voters, which areas would be subject to the Cannabis Business Tax?

The Cannabis Business Tax would apply to the unincorporated areas of San Luis Obispo County (the areas outside of the seven incorporated cities).

The seven incorporated cities may implement their own cannabis taxes within their jurisdictions.

What tax rates are included in the Cannabis Business Tax?

If approved by voters, the Cannabis Business Tax would impose an initial tax rate of 4% on the gross receipts of most cannabis related businesses in the unincorporated areas of San Luis Obispo County. Cannabis testing facilities would be exempt from the tax.

The Cannabis Business Tax could increase by 2% each year beginning in July 2020, not to exceed 10%. The Board would also have the ongoing authority to determine if the tax rate should remain the same, be reduced, or even be adjusted among different cannabis business types.