US (CA): "Santa Barbara experiencing sudden oversupply of cannabis, prices plummeting"

Santa Barbara County’s cannabis industry, like the rest of California, is experiencing the same growing pains of other states that previously legalized adult use — a sudden oversupply of product coupled with a dearth of retail outlets sending prices plummeting.

The result is a drop in tax revenues that the county has used to help fill in funding gaps for important services like libraries and raised hopes for the future as that stream of income rose dramatically from the fourth quarter of 2019-20 through the third quarter of 2020-21.

But then it went over the top like the lead car on a roller coaster, and county officials are now projecting cultivation tax revenue for the 2021-22 fiscal year will end up some $6 million below what was anticipated in the budget.
 
A second quarter report to the Board of Supervisors showed just $2.3 million in taxes was collected in the second quarter of this fiscal year. That’s more than the $2 million collected in the second quarter 2019-20 but less than the $2.6 million from the same quarter of 2020-21.

To read the complete article, go to www.lompocrecord.com


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