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SLO County’s cannabis program more than $1 million in the red

September 24, 2023

By KAREN VELIE

San Luis Obispo County tax payers will pay more than $1 million during the current fiscal year to fund the county’s failing cannabis industry, according to the Sept. 27 Board of Supervisors agenda.

During the 2022-2023 fiscal year, the county spent $400,942 to subsidize the local cannabis industry. The county collected $1,126,229 on cannabis fees and taxes while spending $1,527,171 to manage the program.

Supervisor Dawn Ortiz-Legg in June suggested a cannabis tax freeze in order to allow the industry to prosper. She also wanted to expand the delivery hours from 8 p.m. to 10 p.m. and to permit retail stores in order to generate more fee and tax revenue.

Supervisor Debbie Arnold argued that county residents should not subsidize the cannabis industry.

On June 20, the board voted to lower the cannabis tax rate to 6% rather than raising it to a voter approved 10%, with Arnold dissenting.

As the result of lowering the tax rate, staff now estimates the county will need to spend $1,008,727 to subsidize the cannabis industry during the 2023-2024 tax year, according to the staff report. The county expects to collect $1,565,180 in cannabis fees and taxes and to spend $2,573,907 to manage the program.

During Tuesday’s meeting, the SLO County Board of Supervisors is scheduled to discuss amending its cannabis ordinance to allow retail marijuana shops in the county and to extend delivery hours until 10 p.m.

While the legalization of recreational marijuana has been a boon for California, the tax revenue generated continues to decline year over year.

Last year, the state raked in approximately $1.1 billion in cannabis tax revenue. However, the state collected $104.2 million in cannabis excise taxes in the first quarter of 2023, a drop of 32% from from the first quarter of 2022.

Amid a massive overproduction of cannabis in the state, prices for legal cannabis have fallen about 50% in six years. Meanwhile, pot users can find black market cannabis at 30% to 60% the price or choose to grow their own.


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We all know government entities already budgeted and spent the projected revenue, projections based on wild a$$ guesses, from cannabis busineses, the first thing those entities need to do is cancel or suspend those budgeted items and start only spending what actually comes in.


50

Now wait a minute! Wasn’t a selling point of legalizing pot, spouted by the politicians, was that local governments would make all kinds of much needed tax income by taxing cannabis distributors and sales? Not true? Is it a net loss to the taxpayers? Has the political class misled the taxpayers again? Well I’d it wasn’t so commonplace, I’d be shocked!


65

“and to spend $2,573,907 to manage the program.” Lets see some details on the spending. Best way to sink a program is from within.


61

If it can’t support itself let it die!


72

That doesn’t seem like a wise use of tax dollars. But then again I work for a living.


76

just think how much tax revenue it will generate when every man, woman and child is hooked on weed!


3

The supervisors should have to use the bribes they recieve from the dispensary owners that have walk in stores to cover the deficit not the tax payers. Only the CA government would be capable of losing money as the top king pin selling drugs. It was better off before voters legalized it, less corruption, more choices and no taxes or government involvement.


67

Wait what?? The whole point of allowing this was sold to tax payers based on all the tax revenue it would generate for the county, why in earth would it be subsidized, if the industry can’t survive on its own, let it fail, and save all that $$ spent on “oversight”. What a joke, I guess there wouldn’t be any money for our elected officials to squander if that was the case


74

The Board of Stups must smoke it


55

This is a perfect example of why government should do less not more… they do very few things correctly and affordably…. I’ve never known a pot dealer that couldn’t make money from it…. until now…


90
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