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flag San Diego raises cannabis business tax to 10% to boost city revenues by $3.97 million.

flag The San Diego City Council has approved a tax increase for cannabis businesses from 8% to 10%, effective May 1, to help close a budget gap. flag This move is expected to generate an additional $3.97 million for the city. flag However, concerns have been raised that it may push consumers to neighboring cities with lower tax rates, potentially reducing actual revenue. flag San Diego's cannabis retail sales already face a total markup of 31.75%, including state excise and sales taxes. flag This tax hike aligns San Diego with other west coast cities like Los Angeles and San Jose.

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