The county’s $1.2 billion budget for the 2020-21 fiscal year, beginning July 1, includes an estimated $10.6 million in cannabis tax revenue, money that officials say will help backfill losses associated with the COVID-19 pandemic and the recession.
From July 1, 2020 to June 30, 2021, cannabis taxes are expected to bring in slightly more revenue to the county than sales taxes. In a budget report presented to the county Board of Supervisors on Tuesday, the County Executive Office said that cannabis tax revenue would help avoid layoffs, prevent library closures and reductions in hours, and pay for pandemic-related programs.
In addition, the board set aside $500,000, largely in cannabis tax revenues, for an “equity fund,” to help address racial inequality and discrimination.
Nearly 90 percent of an estimated $271 million in tax revenue for the county’s general fund in 2020-21 will come from property taxes, the budget report shows. Sales taxes, bed taxes (paid by hotel visitors), and cannabis taxes will make up about 4 percent each — relatively small but important revenue streams, officials said.
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