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TPOPICAMMA <br /> July 26,2022 <br /> 1628 S Grand Ave <br /> Santa Ana,CA 92705 <br /> RE:Request to Set Hearing to Lower Cannabis Taxes <br /> Dear Council Member: <br /> My name is Rouzbeh Vandatpour.I am part of the OCAA and I am writing this letter to request an update on the <br /> current situation of cannabis taxes in Santa Ana. <br /> As a minority-owned cannabis business in your city as part of the industry which has brought millions of dollars to <br /> the city,we hope you address the most pressing concern facing your cannabis stakeholders today—Taxes. <br /> Previously,the OCAA has provided significant information,research,and facts in support of lowering cannabis <br /> taxes in Santa Ana.This comes directly from the operators in your city.We are the ones directly impacted by the <br /> city's delays on taxes. <br /> Our understanding was that by July 19,2022 the City would have a hearing and decide on our proposed <br /> recommendations to lower cannabis taxes to 1%for supply chain and 5%for retail.It is now my understanding that <br /> City staff has been asked to do a study on lowering taxes to 4%and delay lowering taxes for another 2 months.In <br /> my opinion,anything above 1%the City should just keep taxes at 6%and as a stakeholder,we can make <br /> arrangements with other more cannabis friendly jurisdictions and do business there instead. <br /> My ask is as follows: <br /> 1) Bifurcate the Cannabis Tax resolution and set it for city council meeting on August 2,2022 to lower <br /> cannabis taxes immediately per proposed OCAA recommendations. <br /> 2) Reduce the gross receipts tax on cannabis retail,manufacturing,and distribution businesses as <br /> follows: <br /> Category Current Rate Future Rate <br /> Adult-use Cannabis Retail Business(including Delivery) 8%/$25 sgft. 5%/$12.50 sqft. <br /> Distribution 6%/$4 sgft. 1%/$2 sgft. <br /> Manufacturing 6%/$10 sgft. 1%/$5 sgft. <br /> Cultivation 6%/$10 sgft. 1%/$5 sgft. <br /> I am an actual owner/operator of Santa Ana.When I lose business,this means I cannot hire employees,pay salaries, <br /> expand my business,or pay taxes.Tying any other matters into the tax resolution,whether it is based on prevailing <br />