The coronavirus pandemic and resulting stay at home orders hurt nearly every industry in the city in 2020, however, the cannabis market saw one of its best years, filling the city’s coffers with nearly $10.3 million in revenue.
City projections anticipated a more conservative return of $4 million from the industry in the last fiscal year, as sales of legal cannabis have lagged since voters legalized it in November 2016.
However, a number of new retail locations coming online, as well as other parts of the industry’s supply chain investing in the city, helped bring in $6 million more than what budget analysts predicted. Statewide, taxes from the industry more than doubled from the third quarter of 2019 to the same quarter of 2020.
Legal cannabis, which was met with scorn from law enforcement and some elected officials, helped stave off a larger budget deficit caused by the pandemic.
The city was forced to close a $30 million funding gap this fiscal year with furloughs and service cuts. A separate withdrawal of emergency reserves will likely be approved Tuesday to backfill a $19.7 million deficit from the previous fiscal year.
The banner year enjoyed by the industry was not too surprising for retailers in the city, who view their product as an alternative to treat a number of medical conditions, some of which have been exacerbated by the pandemic.
Adam Hijazi, who manages multiple locations in the city including The Green Room on Seventh Street, said that his sales…
Original Author Link click here to read complete story..
The coronavirus pandemic and resulting stay at home orders hurt nearly every industry in the city in 2020, however, the cannabis market saw one of its best years, filling the city’s coffers with nearly $10.3 million in revenue.
City projections anticipated a more conservative return of $4 million from the industry in the last fiscal year, as sales of legal cannabis have lagged since voters legalized it in November 2016.
However, a number of new retail locations coming online, as well as other parts of the industry’s supply chain investing in the city, helped bring in $6 million more than what budget analysts predicted. Statewide, taxes from the industry more than doubled from the third quarter of 2019 to the same quarter of 2020.
Legal cannabis, which was met with scorn from law enforcement and some elected officials, helped stave off a larger budget deficit caused by the pandemic.
The city was forced to close a $30 million funding gap this fiscal year with furloughs and service cuts. A separate withdrawal of emergency reserves will likely be approved Tuesday to backfill a $19.7 million deficit from the previous fiscal year.
The banner year enjoyed by the industry was not too surprising for retailers in the city, who view their product as an alternative to treat a number of medical conditions, some of which have been exacerbated by the pandemic.
Adam Hijazi, who manages multiple locations in the city including The Green Room on Seventh Street, said that his sales…