Cannabis Business Tax

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Cannabis Business Tax

As approved by the voters of the City of Santa Cruz on November 4, 2014 and November 8, 2016, any and all cannabis businesses operating in the City are required to pay the City's Cannabis Business Tax.  Pursuant to Chapter 5.07 of the City of Santa Cruz Municipal Code and Ordinance No. 2017-22, the Cannabis Business Tax will be increased from 7% of gross receipts to 8% of gross receipts, effective January 1, 2018.  (City Council may establish the tax at a rate of up to 10%.)  Payment of the Cannabis Business Tax in no way authorizes or legalizes business activities that are otherwise unlawful in the City of Santa Cruz. For further information on the Cannabis Business Tax, see the City's Municipal Code.  Information about cannabis licenses and regulations can be obtained from the Planning and Community Development Department.