Buying marijuana from dispensaries in the city of San Diego could soon get a little more expensive. The San Diego City Council is set to discuss a proposal on Monday to raise the city's tax on recreational cannabis businesses from 8% to 10%, making it one of the highest of its kind in California.
The tax, which is imposed on to a cannabis retailer's total sales, could mean consumers end up shouldering higher prices on the products they buy from the city's more than two dozen regulated dispensaries.
If the city council passes the tax increase on Monday, it would go into effect on May 1, 2025. The city's cannabis tax is one of several fees levied on regulated cannabis businesses, including general sales taxes and state excise taxes.
Voters first approved the tax in 2016 with the passing of Measure N. The tax was set at an initial rate of 5% that would grow to 8% by 2019 with the potential for it to reach the state mandated cap of 15% in the future.
Read more at Fox 5 San Diego