California local governments scrambling to find tax revenues during the coronavirus pandemic are turning toward an industry they had considered taboo until now: cannabis
OAKLAND — .
San Bruno, a Bay Area city that two years ago banned marijuana businesses, is among the governments with a change of heart. Last week, city council members voted unanimously to fund a tax measure and public education campaign, while voicing support for the idea of exploring an ordinance that would allow a dispensary or delivery service to open sometime next year.
The city of Montclair in San Bernardino County is facing a similar budget crunch as sales tax revenue has cratered following the temporary closure of its mall. There, city officials are considering proposals to repeal a marijuana ban and create regulations for commercial activity. The plan could raise up to $2 million annually, according to City Manager Edward Starr.
“I'm not opposed to it,” said Councilmember Denise Allen, after city staff asked if they should explore cannabis regulations. “I mean, other cities are taking our revenue right now so it's just one of those facts.” “What a city needs to do that's really looking at new revenues to help be a piece of this budget solution is preferably one tax, because multiple taxes are going to drag each other down,” he said. “One tax that's going to generate a substantial amount of revenue. So that's not going to be cannabis in most cities.”
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