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Sept. 28 Daily Briefing: Pride Honors, cannabis tax revenue update, tortoise helped, and more

In today’s Daily Briefing we bring you news of honors for locals helping advance LGBTQ+ rights, the state of the local cannabis industry, a very slow rescue, and more.

Happy Thursday, where weโ€™d like to note that Palm Springs Pride is right around the corner and organizers are still in need of volunteers. Thereโ€™s a range of positions available in areas such as the parade, first aid tent, beverage concession, and more! Check out the available positions and sign up online hereย to help be a part of the citywide celebration.

๐ŸŽถ Setting the mood:ย โ€œTous les mรชmesโ€ by Stromae


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LEADING OFF

Cannabis tax revenue continues to declineย 

A sign on the door of The Row House dispensary in northern Palm Springs shows it was closed last summer. It didnโ€™t reopen.

Statewide struggles in the legal cannabis business are hitting home in Palm Springs. Earlier this week, city staff showed elected officials exactly how the situation is playing out, noting that tax revenues and permits continue to decline.

First things first:ย California voters legalized recreational marijuana in 2016, and lawmakers hoped the new legal market would increase tax revenue and drive illicit operations out of business.

  • Seven years later, tax revenue has increased. Still, itโ€™s now on a downward trend locally and statewide, and the black market is estimated to bring in about $8 billion annually, double the volume of legal sales.ย 

How it happened: The legal industry faces many hurdles, including high state, county, and city taxes, competition with the black market, and oversaturation.ย 

At issue:ย Inย Fiscal year 2020/2021, retail cannabis tax revenue in Palm Springs came in at $4.4 million. In the 2021/2022 fiscal year, that number was $4.1 million, a 6% decrease. So far in the current fiscal year, the revenue sits at $3.2 million.ย 

  • This is despite the city having one of the most saturated cannabis markets in the state.ย An analysis conducted by The Postย shows the city has one dispensary per every 2,100 residents.ย 

By the numbers:ย In the Coachella Valley, Palm Springs and Desert Hot Springs have the highest recreational tax rate for cannabis at 10%. In Cathedral City, shoppers pay half the amount of tax โ€” 5%. The other three valley cities with legalized cannabis tax it at either 5% or 6%.ย 

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  • โ€œIt is very challenging for our local retailers when you can drive 10 minutes down the road, and thereโ€™s going to be a significant difference in price,โ€ said Veronica Goedhart, director of special program compliance with the city. โ€œItโ€™s something that we should look into.โ€ย 

Zoom out:ย Tax rates in other cities havenโ€™t always been that low. Cathedral City and Palm Desert met with cannabis business owners last year. Then, earlier this year, both cities reduced their retail tax rate by half, from 10% to 5%.

What to watch for:ย Palm Springs lawmakers have discussed lowering city taxes and introducing a cap on dispensaries. But so far, action has yet to be taken.

  • At Tuesday nightโ€™s city council meeting, Goedhart told councilmembers that she is working with City Manager Scott Stiles to bring a recommendation to the council to fix some of the issues, including high taxes and oversaturation. There was no timeline for when that recommendation would come.

Diveย deeper with our complete story online.


BRIEFLY

An extension of the dining area for Tac/Quila at 415 North Palm Canyon Dr., known as a parklet.

๐Ÿณ๏ธโ€๐ŸŒˆ Recipients named for Pride Honors

Multiple individuals and organizations will be honored with awards recognizingย the tireless efforts of those who advance LGBTQ+ rights during Palm Springs Pride this year.

Driving the news:ย This yearโ€™s honorees, announced this week, include Donald Beck, Miss Patsi, Beverly Sweigart, Jase Nagaia, Greg Barton and Dee Dee Wilson Barton, and Brothers of the Desert.

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What theyโ€™re saying: โ€œThis is not a group that seeks attention or applause,โ€ said Ron deHarte, President and CEO of Greater Palm Springs Pride.ย โ€œThey quietly serve, and we are grateful for the profound impact they have had and continue to have in our community.โ€ย 

Details: The award ceremony will be held on Monday, Oct. 16 at the Hilton Palm Springs.

TODAYโ€™S EVENTS

Americana Open Mic & Showcase
5:30 p.m. | Palm Springs Cultural Center
Original songwriters and performers of bluegrass, country, blues, folk, and traditional musical styles are welcome to sign up to perform at the open mic night. There will also be a performance from local Americana artists. ($12)

VillageFest
7 p.m. | Downtown Palm Springs
The weekly street fair features art, entertainment, shopping, and food. The Palm Springs Art Museum also has free admission tonight starting at 5 p.m.

Jazz & Martinis
7 p.m. | V Wine Lounge
Join Leanna and Jazz Trio playing Pop, Jazz, and Bossa hits from 7 p.m. until 9 p.m. every Thursday. ($10)

SAVE THE DATE


AND FINALLY โ€ฆ

๐Ÿข Check out this massive tortoise that the Palm Springs Police Department helped cross the road.

Wait, what?ย The tortoise was found (slowly) walking across Ramon Road on Monday. PSPD and officers from Palm Springs Animal Control were on hand to make sure the hard-shelled creature made its way safely to the other side.

Bottom line: A commenter on the PSPD Facebook page said the tortoise is named Grover the Rover, and his owners were contacted.

Author

Stories with a staff byline are written or edited by a member of the Palm Springs Post staff and are generally shorter or less complex than our more thorough stories.

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