San Diego takes into account an increase in cannabis and makes concerns of industry and consumers

The city's officers in San Diego weigh a potential tax increase for cannabis companies, a step that could increase prices for consumers and put additional pressure on local pharmacies. The city council is intended to discuss the proposal that aims to generate additional income for city services, but could also influence the competitiveness of the legal cannabis market.

Why the tax increase is on the table

The proposed tax increase is looking for new sources of income as San Diego to remedy the budget deficits. City officials argue that cannabis companies should contribute more to municipal funds in view of the growth and profitability of the industry. Supporters of the tax increase claim that the additional funds to support public security, infrastructure and social programs could be used.

San Diego cannabis companies are currently paying a local tax of 8%in addition to state and sales taxes. The proposed increase could increase this higher and possibly more than 10%, which makes it one of the highest cannabis tax rates in California.

Industry -pushback and effects of consumers

Cannabis business owners warn that higher taxes could bring consumers to the illegal market where prices remain lower due to lack of regulation. Some pharmacy owners argue that they are already struggling with high operating costs, including compliance with strict state regulations and security requirements.

If the tax increase passes, the consumers of San Diego cannabis can expect prize, which further discourages legal purchases. Industry representatives argue that instead of increasing taxes, the city should concentrate on reducing obstacles to legal companies in order to compete with non -licensed sellers.

What happens next?

The city council will check the tax proposal in the coming weeks. If approved, the increase could be effective later this year. The debate shows the continuous challenge of reconciling the regulation of the cannabis industry with adequate taxation and ensuring both the income from the city and the sustainability of the business.