Amid Fiscal Crunch, More Cities Are Turning to Pot
With sales tax revenues plunging, many cities are taking a second look at legalized cannabis as a revenue enhancer.
Politico reports that a number of California governments are now pursuing cannabis regulation and taxation. These include San Bruno, Montclair, Yucaipa, Grass Valley, Sonoma, Signal Hill, Wildomar, Lemon Grove, and Yountville.
There are signs it could work. Santa Barbara County is expecting $10.6 million in cannabis tax revenue for the fiscal year 2020-21, exceeding revenue from sales taxes for the first time. Monterey is also expecting to offset pandemic-related losses with millions in marijuana dollars.
There is a long way to go. Four years after voters passed Propsition 64, commercial marijuana is still off limits in nearly 70% of California cities and counties.