Santa Barbara County Cannabis Tax Revenues Will Exceed Sales Taxes

Officials Say One-Third of 2020-21’s Tally Will Go Toward Policing and Regulating the Industry

Cannabis tax revenues are estimated to account for $10.6 million out of a $1.2 billion budget for the coming fiscal year, beginning on July 1, county officials said this week. In Carpinteria, cannabis is grown in greenhouses with roof vents. | Credit: Paul Wellman (file)

The county’s $1.2 billion budget for the 2020-21 fiscal year, beginning July 1, includes an estimated $10.6 million in cannabis tax revenue, money that officials say will help backfill losses associated with the COVID-19 pandemic and the recession.

From July 1, 2020 to June 30, 2021, cannabis taxes are expected to bring in slightly more revenue to the county than sales taxes. In a budget report presented to the county Board of Supervisors on Tuesday, the County Executive Office said that cannabis tax revenue would help avoid layoffs, prevent library closures and reductions in hours, and pay for pandemic-related programs.

In addition, the board set aside $500,000, largely in cannabis tax revenues, for an “equity fund,” to help address racial inequality and discrimination.