SOUTH LAKE TAHOE, California (KOLO) – The City of South Lake Tahoe has reduced the cannabis tax rate from 6% to 3%.

The reduction comes after cannabis owners said it was too high and forcing customers away.

However, according to South Tahoe Now, several local nonprofits spoke up during the meeting, saying the tax was necessary to fund their efforts.

Last year, the tax brought in $900,000, $450,000 of which went to non profits such as the Boys and Girls Club, while the other $450,000 went towards a dedicated police officer, snow removal and general road funds.

The measure passed 3-0. Mayor Cody Bass recused himself, as he is the owner of a cannabis business.

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