Cannabis Business Tax

Measure V

On November 6, 2018, La Mesa voters approved the Cannabis Business Tax, Measure V, by 72%. This measure authorizes the City Council to implement the tax by resolution or amendment of the La Mesa Municipal Code for purposes of business tax on all commercial cannabis businesses. This is a general tax and will be used to fund general expenses such as police, fire, roads and recreation. The business tax will go into effect on January 1, 2019.

Initial and maximum rates                

  • Commercial cannabis cultivation (indoor) $7 per square foot of canopy space not to exceed $10 per square foot of canopy space.
  • Commercial cannabis cultivation (nursery) $1 per square foot of canopy space not to exceed $10 per square foot of canopy space.
  • Cannabis manufacturing, processing or microbusiness (non-retail) 2.5 percent of gross receipts not to exceed 6 percent of gross receipts.
  • Retail sales of cannabis as a retailer (dispensary), non-store front retailer (delivery or microbusiness "retail sales").  Zero percent for medicinal and 4 percent for adult-use not to exceed 6 percent of gross receipts.
  • Operation of a testing laboratory for cannabis or cannabis products; 1 percent of gross receipts not to exceed 6 percent of gross receipts.
  • Operation of a cannabis distribution business, or any other type of cannabis business not described above. 2 percent of gross receipts not to exceed 6 percent of gross receipts.

*More information to come soon*

  1. Sarah Waller-Bullock

    Director of Finance

  2. Donna Rubalcava

    Business License Officer