It was supposed to be a tax windfall for Santa Barbara County. But, the Santa Barbara County Grand Jury says the collapse of the cannabis industry in California turned managing the industry locally into a financial burden for the county.
The legalization of cannabis in California was billboarded as a major new tax revenue source for Santa Barbara County. It was at first, peaking at $5.7 annually. But, this year revenue is projected to be $1.3 million.
An oversupply in the market, illegal suppliers, plus the high costs of permits, fees, and startup costs combined to hurt the industry. And, the wholesale cost of cannabis dropped from $1200 dollars a pound in 2020 to around $250 now…