Desert Hot Springs Considers Lowering Cannabis Tax Rate

The Desert Hot Springs City Council is moving toward lowering its cannabis retail tax from 10% to 5% to support struggling local businesses. In a unanimous vote on Tuesday, the council directed staff to draft an ordinance for the change. The decision comes as cannabis businesses face financial pressure from market saturation, illegal competition, high taxes, and costly security. Other Coachella Valley cities—Cathedral City, Palm Desert, and Palm Springs—have already taken similar steps.