California’s two largest cities are ratcheting up fees and taxes on the legal cannabis industry even as retailers shutter and the entire legal market sputters with tax revenue dropping significantly.
San Diego is squeezing its legal cannabis industry as it faces a dire cannabis market. Sales inside the city of San Diego have fallen nearly 50% in the latest fiscal year compared to sales in fiscal year 2021, according to NBC San Diego (KNSD-TV). Despite the sales decline, the San Diego City Council voted in March to raise the cannabis tax rate from 8% to 10% to raise revenue while the city faces a broader budget crisis.
Pot shops in the state’s largest city are facing a similar situation. The Los Angeles City Council voted unanimously this week to increase licensing fees for legal stores because falling cannabis licensing revenue is no longer bringing in enough money to support their marijuana regulator, which has nearly doubled its staff in recent years, according to the Los Angeles Times. Luis Rivera, the owner of a delivery service, told the paper the fee increase would be “disastrous.”…