Santa Barbara County Supervisors Hit Pause on Cannabis Tax Reform
‘Self-Reporting’ by Growers Has Led to Lost Tax Revenues, Board Says, But It Will Take Time to Come Up with a Fairer System
Amid plummeting prices for cannabis “flower” in the Golden State, Santa Barbara County is likely to collect only $10.8 million in cannabis tax revenues this fiscal year, or 40 percent less than the $18.4 million that was budgeted last June, authorities say.
Statewide, the newly legalized industry continues to produce an oversupply of wholesale cannabis as new operators get licensed and enter the market, driving prices down, according to the County Executive Officer’s third-quarter budget report.
It’s the second time the CEO has been forced to lower the county’s cannabis tax projections for 2021-22. By some estimates, California growers are producing three times as much marijuana as can be consumed in the state. The illegal market is believed to account for at least two-thirds of total sales; Santa Barbara County alone spends more than $3 million on cannabis enforcement yearly.
