Cannabis industry revenue increases as owners still face challenges

The City of Salinas saw tax revenue from the cannabis industry double between 2017 and 2018 but are looking to address challenges that business owners continue to face.

About eight businesses are operational with twenty being awarded permits as of the city’s newest report.

Owners of Salinas pot shops say they’re trying to take hold of an industry once dominated by illegal marijuana businesses.

That transition has provided for some growing pains for the cannabis industry.

“For some people, because of the history of the drug war,” says Gavin Kogan. “This is a nervous experience for them.”

For now the city says it’s hard to determine which way the Cannabis industry is trending, since it is in such a young phase for Salinas and considering the challenges currently hindering the industry’s growth.

Still, there are some numbers to go by. In 2017, tax revenues were at $374,368. In 2018 that amount grew to $802,687.

The city expects revenues to increase from there for 2019 and even further in 2020 when a change in tax rate is planned.

Pot shops say another issue they faced at least in 2018 was the restriction on the hours they were to remain open.

The city has attempted to remedy this by allowing dispensaries to be open through 10 pm and on Sundays.

“Until the taxes and regulations are fixed, however, we’re still going to have a massive black market that we’ll have to compete against,” says Kogan.

For a look at the full report from the city, click here