Civil Grand Jury report shows cannabis businesses are struggling financially in Monterey County

MONTEREY COUNTY, Calif. (KION-TV)- The Monterey County Civil Grand Jury Report said that cannabis businesses are struggling financially.

The report says more than 50 cannabis businesses have closed or filed for bankruptcy defaulting on more than $6 million in unpaid taxes.

Annual tax revenues have plummeted from $20 million in 2021 to $3 million in 2024.

The report also said that operating costs for 2025 are expected to exceed $3 million leaving little to no funding for community services.

The county's cannabis tax fund was created in 2016. Since then, over $70 million in tax revenue has gone back into the community projects.

The grand jury says more focused oversight is needed from the Monterey County Board of Supervisors.

This includes steps like conducting an internal audit and mitigating the impacts of the illegal cannabis market.