Oversupply And Regulations Hit San Diego Cannabis Revenue Amid Budget Crisis

As the city of San Diego faces a harrowing $258 million budget deficit, one of its revenue streams is also drying out compared to recent years. Cannabis sales in San Diego brought in $1.5 million less revenue during the 2024 fiscal year compared to the year prior. 

In FY23, the city received roughly $18.2 million in funds from the Cannabis Business Tax, which requires companies growing, manufacturing, distributing or storing cannabis to pay the city 2% of its monthly income. 

The city budgeted for $25 million for the 2024 fiscal year after FY23’s revenue — but sales fell short. 

San Diego’s Communications Director Nicole Darling said there’s a few reasons for that. Neighboring competition, delivery services and the illegal market play a big role in the revenue deficit. 

San Diego-based cannabis expert Jackie Bryant says these issues aren’t just citywide. They’re impacting every level of operations across the cannabis industry. 

To Read The Rest Of This Article On CBS8, Click Here

The post Oversupply And Regulations Hit San Diego Cannabis Revenue Amid Budget Crisis appeared first on Marijuana Retail Report – News and Information for Cannabis Retailers.