First-quarter revenues from county taxes on the sale of legal cannabis this fiscal year — $3.1 million — was 17 percent less than it was the previous quarter and 25 percent less than it was the same time a year ago. The culprit, county supervisors were told, is rampant overproduction and a lack of legal retail outlets.
With high taxes burdening sales of legal weed, law-abiding producers are finding it harder to compete with black-market operators, who typically can sell for roughly half the price charged at legal dispensaries. At least a couple of unnamed legal growers, the supervisors were told, have taken to selling on the black market.
It was not made clear to the supervisors what consequences were imposed as a result. Brittany Heaton, the county’s de facto cannabis czar, notified the supervisors that typically the Sheriff’s Office is asked to investigate and will refer cases to the District Attorney if there’s sufficient evidence. It was unclear to what extent that’s occurred. Heaton added that the growers would have to be found guilty of violating the law before county legal staff could sanction the growers or shut them down.