AGENCY TESTIMONY
Cannabis tax revenue in context and impact of unlicensed shops
2:19:35
·
54 sec
The IBO puts cannabis tax revenue in context of overall city revenue and discusses the impact of unlicensed smoke shops.
- Even at the highest projection of $200 million, cannabis tax revenue would only amount to about 0.24% of total city revenues
- Fluctuations in cannabis revenue are not a significant factor in creating or closing budget gaps
- Unlicensed smoke shops affect the ability of licensed dispensaries to compete and succeed
- The sale of unlicensed cannabis and tobacco products raises consumer protection and public health concerns
Alaina Turnquist
2:19:35
Importantly, the amount of potential cannabis tax revenue that the city could eventually see from the mature legal market is small in comparison to other sources of city tax revenue.
2:19:45
IBO projects that IBO projects approximately $85,000,000,000 in total city tax revenues in 2028, even with the highest cannabis production of about $200,000,000 This would only amount to about 0.24 percent of the total city revenues.
2:20:04
This fluctuation in cannabis, thus fluctuations in cannabis revenue are not a make or break factor in creating or closing budget gaps.
2:20:13
While the fiscal impact of unlicensed smoke shops and cannabis revenue is relatively small, unlicensed smoke shops likely affect the ability of licensed dispensaries to compete and succeed in the city and the sale of unlicensed cannabis and tobacco products creates concern from a consumer protection and public health vantage point.
