Long Beach City Council Provides Tax Breaks for Cannabis Retail Businesses Who Provide High-Road Jobs for Workers and Communities
Buena Park, CA – Today, the United Food and Commercial Workers (UFCW) Local 324 applauded Long Beach City Council’s passage of an ordinance ensuring cannabis retail businesses that uplift workers, the community, and the industry will receive a lower tax rate. The decision came after workers pushed to ensure the incentives were directed to businesses that incentivize local hiring, provide living wages and career pathways for workers.
With this action, the Long Beach City Council is providing alll cannabis business in the city with a one percent tax break, and an additional three percent for high-road businesses who:
- Pay 80% of employees at least 115% of minimum wage and all workers 110% of minimum wage;
- Provide on-the-job paid training opportunities with state-certified programs to create career pathways; and
- Hire at least 40% of their employees from low-income neighborhoods in Long Beach.
The lower tax rate for high-road employers will provide much-needed relief for retailers who have been unable to maintain high worker wages, benefits, and career growth opportunities because of the high cost of taxes.
“Prioritizing good, safe jobs provides workers with opportunities to climb career ladders, gain industry recognition, education, and training, further legitimizing the cannabis industry in Long Beach,” said Derek Smith, political director, UFCW Local 324. “UFCW Local 324 is proud that the Long Beach City Council will continue to be a bold leader in the cannabis industry by encouraging the industry to provide jobs that pay better wages and earn better benefits. These high road cannabis jobs—like the ones we represent—are vital to keeping our economy afloat and lifting families out of poverty.”
Long Beach is the second city in California, following Santa Ana, to reduce high-road cannabis business’ tax rates. UFCW is California’s leading union representing cannabis workers, with 6,000 members in the state.
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FOR IMMEDIATE RELEASE
April 17, 2024
Contact: Jenna Thompson, 949.246.1620, jthompson@ufcw324.org
