With cannabis consumption lounges already open for business in San Francisco and recently approved in West Hollywood, it should come as no surprise that San Diego and other California cities are starting to coming around to the idea. After all, California’s first year of recreational cannabis sales turned out to be less than expected according to data from BDS Analytics. That means California’s cannabis tax revenues were also lower than expected.
If on-site marijuana consumption lounges were to be approved more widely across California it may increase cannatourism and consumption, leading to higher tax revenues for the state as well as the municipalities that welcome them. It will also solve the question of ‘where can I consume cannabis in California?’ since public consumption is illegal, hotels and resort forbid it, and landlords can evict for it.
While the City of San Diego made roughly $5.5 million in 2018 from taxing cannabis businesses, it has a higher target for this year as it “hopes to make $500 thousand more than expected in taxes for fiscal year 2019,” according to NBC 7 San Diego.
Even if San Diego doesn’t give the green light to open cannabis cafes, the city will probably hit its tax targets for 2019. The current Cannabis Business Tax, or CBT, in San Diego takes 5% of recreational marijuana sales, but will jump to 8% on the first of July. They’ve also been auditing local licensed cannabis businesses to make sure they’ve been complying with the tax and paying their fair share.
That being said, we’d love to see cannabis cafes open up in San Diego. It will prevent public consumption around adolescents and open up more job opportunities. And, as if the Legoland, Seaworld, and other San Diego attractions weren’t enough amusement for tourists, they may draw a whole new crowd.
Once these cannabis cafes begin popping up around the U.S., we wouldn’t be surprised if some cities begin to rival Amsterdam as the cannatourism capital of the world. In the meantime, be sure to subscribe to updates here so you never miss an important development.
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