San Francisco has suspended a cannabis tax in the wake of a huge crime surge that has seen $5million worth of products stolen from marijuana stores in a month.
A one per cent to five per cent citywide tax on gross receipts was due to be imposed in January after it was approved by voters three years ago.
But the recent spate of smash-and-grab robberies has led to city supervisors delaying the tax until December 31, 2022, in a bid to help retailers who are struggling to compete with illegal drug dealers.
Oakland Police Chief LeRonne Armstrong told reporters that 'hundreds' of vehicles targeted marijuana stores in Oakland last month, firing 175 shots and stealing about $5million worth of products.
City supervisor Rafael Mandeman told the San Francisco Examiner the legal cannabis market is helping create jobs and offering regulated products to customers.
But he said: 'Sadly, the illegal market is flourishing by undercutting the prices of legal businesses, which is bad for our economy as illegal businesses pay no taxes while subjecting workers to dangerous conditions and consumers to dangerous products.
San Francisco has suspended a cannabis tax in the wake of a huge crime surge that has seen $5million worth of products stolen from marijuana stores in a month. Pictured: the Green Cross dispensary which was targeted by thieves
City supervisor Rafael Mandeman said the legal cannabis market is helping create jobs and offering regulated products to customers
'Now is not the time to impose a new tax on small businesses that are just getting established and trying to compete with illicit operators.
'Cannabis businesses, along with many other retailers in San Francisco, are struggling under the weight of out-of-control retail theft.
'San Francisco needs to do more to protect these businesses, their employees, and their customers before we hit them with a new tax.'
Alphonso 'Tucky' Blunt, owner of Blunts and Moore, told MJBizDaily that his store lost about $25,000 during a November 22 raid, where more than a dozen burglars ransacked the store.
'I know 25 or so businesses that got hit … and out of all those, the percentage I know that told me that they may not be able to reopen is about 50 percent. That's scary,' Blunt said.
'I was safer, and had more money, (selling) on the street, illegally.'
A gang of thieves broke into Blunts and Moore on November 22, making off with about $25,000 worth of product as the ransacked the store
Alphonso 'Tucky' Blunt, owner of the Blunts and Moore cannabis shop, said robberies in San Francisco have gotten so bad that he was safer selling drugs on the streets
A one per cent to five per cent citywide tax was due to be imposed in January after it was approved by voters three years ago
Blunt and other marijuana shop owners said that their businesses are targeted because thieves believe they have a lot of cash on hand, which they said is not the case.
Blunt estimated that his shop has been vandalized or robbed at least 10 times since opening in 2018.
Amber Senter, the co-founder of Supernova Women - an Oakland-based nonprofit that helps women of color in the cannabis
