PRESS RELEASE

Long Beach, CA – In an effort to stimulate growth in the local cannabis industry and promote community benefits, during its April 9, 2024, meeting, the Long Beach City Council approved with a 9 to 0 vote a Cannabis Tax Relief Plan and ordinance amendment. The approved plan includes a 1% cannabis tax reduction (or equivalent) for cultivation and adult-use retail businesses as well as a Pilot Tax Credit Program, for a combined potential 4% of tax relief for qualifying businesses.

“Identifying new ways to support our local businesses and stimulate our local economy is a cornerstone in our economic development strategy,” said Mayor Rex Richardson. “This new Pilot Tax Credit Program will uplift our local cannabis industry and foster responsible business practices that support frontline employees.”

The amended ordinance and 1% cannabis tax reduction for all businesses went into effect on May 24, 2024. The City is now accepting applications for the Pilot Tax Credit Program.

To qualify for the Pilot Tax Credit Program and receive a tax credit of 3%, a cannabis cultivation or adult-use retail business must be in “good standing” and satisfy the eligibility criteria. The eligibility criteria, including local hiring, workforce quality of life, training, and equity business support, are designed to provide flexibility to businesses and promote meaningful employment opportunities using a workforce and equity lens.

Businesses enrolled in a Special Circumstances Payment Plan may be eligible for the program after six months of proven payments. Tax credits will be applied upon remittance of quarterly or annual taxes and gross receipts reports, and other supporting documentation as required.

More information about the program, including application requirements and the link to the application, is available on the Cannabis Business License and Fees webpage.

“This is another step forward in supporting our local cannabis industry and ensuring its long-term success,” said Ninth District Councilmember Dr. Joni Ricks-Oddie. “By providing incentives for businesses that prioritizes community benefits including local hiring, we are creating an economic environment that positively impacts our workforce.”

The City developed its own Cannabis Tax Relief Plan, at the direction of City Council, following research of best practices of comparable jurisdictions that license cannabis businesses. The recommendation to develop a tax relief plan was brought forward in April 2023 by Ninth District Councilmember Dr. Joni Ricks-Oddie and co-sponsored by Vice Mayor and Second District Councilwoman Cindy Allen and Sixth District Councilwoman Dr. Suely Saro and was approved by the City Council.

Previous tax relief efforts included the reduction of cannabis cultivation and retail taxes for equity businesses by half the rate of non-equity businesses approved by the City Council in August 2023, and reduction of cannabis manufacturing, distribution and lab testing taxes from 6% to 1% of gross receipts approved by the City Council in December 2019.

Eligible businesses may contact the Department of Financial Management, Business Services Bureau by email at cannabislicense@longbeach.gov or by phone at 562.570.2662 with questions.

About the City of Long Beach
Long Beach is nestled along the Southern California coast and home to approximately 466,000 people. As an award-winning full-service charter city, Long Beach offers the amenities of a metropolitan city while maintaining a strong sense of individual and diverse neighborhoods, culture and community. With a bustling downtown and over six miles of scenic beaches, Long Beach is a renowned tourist and business destination and home to the iconic Queen Mary, nationally recognized Aquarium of the Pacific and Long Beach Airport, award-winning Long Beach Convention and Entertainment Center and world-class Port of Long Beach.

For more information about the City of Long Beach, visit longbeach.gov/. Follow us on social to keep up with the latest news: Facebook, X, Instagram and YouTube.