Oversupply And Regulations Hit San Diego Cannabis Revenue Amid Budget Crisis
The city budgeted for $25 million for the 2024 fiscal year, and fell short
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.
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