Oakland’s cannabis vendors are turning to state and city leaders after gunfire and burglaries have left them “under attack.”
The city’s cannabis businesses became victims of a spree of criminal acts that took place the weekend before Thanksgiving. Over two dozen licensed operators had their stores and offices vandalized. Estimated total losses add up to over $5 million.
At a news conference in front of City Hall, several cannabis business owners had a list for leaders, including:
• Faster responses by police
• A repeal of local taxes on all legal cannabis businesses
• Significant reductions on any state excise tax
• State cultivation tax reprieves
“We need more protection,” a spokesperson said at the news conference. “We need more funds and resources to improve security so that we can protect ourselves.”
Several cannabis business owners spoke at the conference. Many got their licenses through the city’s Cannabis Equity permit program. Approved by the City Council in 2017, its purpose was to prioritize formerly incarcerated entrepreneurs and people of color harmed by the alleged War on Drugs. Through the program, the victimized had opportunities to receive grants, loans, and business coaching.
It was two years ago that the city council agreed to offer tax breaks to Oakland cannabis businesses. At the time, the mayor, Libby Schaaf, objected to the initiative. She felt the costs of the cuts would result in job loss and close to $12 million in expenditures over a year and a half.
Under the breaks, recreational weed businesses making gross receipts of over $500,000 got taxed five percent in 2021 and 6.5% in 2020. Recreational establishments earning $5 million or more saw taxes of 9.5% in 2020 and eight percent in 2021.
In 2022, the plan is for businesses bringing in over $1.5 million to pay out five percent in taxes. Cannabis companies making between $750,000 and $1.5 million will have taxes set at four percent.
Oakland funded the tax cut initiative by cutting jobs in the Fire Prevention Bureau, the Police Department, the Cannabis Equity Program, and the Economic & Workforce Development Department. Still, cannabis vendors argue the concessions haven’t stopped taxes from crippling local weed business.
The best approach to securing and protecting the business seemed to vary at the news conference, but two topics had a consensus. First, the cannabis industry is severely vulnerable to criminality. Second, Oakland’s failing to protect the industry.
Several conference participants warned they’d leave the city if there’s no economic aid or relief to create a stronger environment.
“We just want people to be safe and smoke their weed in peace, and run their businesses,” said Chaney Turner, chair of the Oakland Cannabis Commission. “The purpose of legalization and equity was to generate wealth for communities and individuals who were harmed by the drug war. Now these same people who were harmed by the drug war are being harmed by not being protected by the people who are paid to protect them.”
