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San Diego raises cannabis business tax to 10% to boost city revenues by $3.97 million.
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.
This move is expected to generate an additional $3.97 million for the city.
However, concerns have been raised that it may push consumers to neighboring cities with lower tax rates, potentially reducing actual revenue.
San Diego's cannabis retail sales already face a total markup of 31.75%, including state excise and sales taxes.
This tax hike aligns San Diego with other west coast cities like Los Angeles and San Jose.
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San Diego eleva el impuesto a los negocios de cannabis al 10% para aumentar los ingresos de la ciudad en $3,97 millones.