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Orozco, Norma <br /> From: McKenna Lelah <mlelah@ouidconfections.com> <br /> Sent: Friday, July 29, 2022 11:52 AM <br /> To: eComment <br /> Subject: OCAA Cannabis Tax Reduction Recommendation Proposal <br /> RE: July 29, 2022 <br /> Special City Council Meeting Agenda <br /> Item #1, Municipal Code Changes Related to Cannabis <br /> Dear City Council and City Staff: <br /> My name is McKenna Lelah, I am the Director of Operations at Oui'd Confections and we are a <br /> licensed cannabis manufacturing and distribution facility in the City of Santa Ana. <br /> As a licensed manufacturer, I am respectfully requesting the following regarding municipal code <br /> changes related to Cannabis. <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 Future <br /> Rate Rate <br /> Adult-use Cannabis Retail 8% / $25 5% / <br /> Business (including Delivery) sqft. $12.50 <br /> sqft. <br /> Distribution 6% / $4 1% / $2 <br /> sqft. sqft. <br /> Manufacturing 6% / $10 1% / $5 <br /> sqft. sqft. <br /> Cultivation 6% / $10 1% / $5 <br /> sqft. sqft. <br /> These are the most important issues facing me as a cannabis operator in the City of Santa Ana. <br /> Contrary to popular belief, while the cannabis industry has high yearly sales, the profitability for <br /> businesses in the cannabis industry is not as high as most people think due to the taxes. Starting with <br /> the cannabis farmers, an already difficult industry to be in, the high taxes that they get hit with trickle <br /> down to the manufacturers which increase the purchase price of their product by so much, they end <br /> up paying the price. <br /> A small company like Oui'd Confections is trying to make a difference in this industry by offering high <br /> quality edibles starting with our raw ingredients where we use high quality cannabis that is healthier <br /> 1 <br />