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Council adopts 2% increase to cannabis tax for nonmedical retail, passes 5–2
Summary
After staff presentation and public comment from operators and residents, the council approved a 2% increase to the city’s nonmedical retail cannabis tax to shore up general‑fund revenue, with the ordinance expected to be effective May 7 and the tax increase to take effect July 1.
The Santa Bárbara City Council adopted an ordinance to raise the city tax on nonmedical retail cannabis sales by 2 percentage points, targeting nonmedical retail categories while keeping medical dispensaries at the existing rate.
Finance Director Linsai provided background on the city’s cannabis tax structure under Santa Bárbara Municipal Code section 5.42.250 and showed that cannabis revenues peaked in fiscal 2021 at about $1.9 million and have since declined. Staff…
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