Santa Barbara County reported $3.1 million in cannabis tax revenues for the first quarter of its fiscal year, which is 25% less than the amount collected in the same quarter last year.
The county has reported multiple quarters of increasing tax revenues until mid-2021, when it reported a 45% decrease compared to the previous year.
“As part of the fourth-quarter update, staff began signaling that a supply glut was beginning to develop both statewide and locally, resulting in price compression of wholesale cannabis product,” Steven Yee, a fiscal analyst with the County Executive Office, said at the Dec. 14 Board of Supervisors meeting.
“Given the information that’s currently available, staff’s analysis shows that oversupply of wholesale product is still persisting,” he said.
The $3.1 million collected over the first quarter of fiscal year 2021-22, which ran from July 1 through Sept. 30, also represents a 17% decrease over the previous three-month period, Yee said.
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