DESERT HOT SPRINGS, Calif. (KESQ) – Desert Hot Springs, long known as a hub for cannabis in the Coachella Valley, is considering a dramatic move to help struggling dispensaries: cutting the city’s cannabis tax from 10% to 5%.

The proposal comes as local cannabis businesses face rising pressure from high taxes, the illicit market, and dispensaries on tribal land that don’t face the same tax requirements.

At tonight’s city council meeting, officials will read the ordinance that outlines the proposed tax cut. While a final decision likely won’t be made this evening, Mayor Scott Matas says he strongly supports 

Business owners say they’re paying nearly 40% in combined taxes between the city, county and state. They say that’s making it harder to survive — and harder to compete with illegal sellers and tax-exempt operations on tribal land.

Desert Hot Springs was one of the first cities in the valley to embrace the cannabis industry. It’s brought in millions in tax revenue for the city, but industry leaders say it won’t last without relief.

We’ll have more from business owners and city leaders in Desert Hot Springs tonight on News Channel 3.