Santa Barbara City Council Votes in Favor of Higher Cannabis Tax

SANTA BARBARA, Calif. (KEYT) The city of Santa Barbara hopes to make more money from storefront cannabis sales.

Santa Barbara City Councilmembers voted in favor of a higher cannabis tax on Tuesday.

Customers will pay two percent more in taxes on recreational purchases from stores in the city.

The increase, from 6 to 7 percent, won't impact medicinal sales.

City administrator Kelly McAdoo said it is intended to help the city balance it's budget. 

"When the cannabis tax rate went into affect initially it was set at 20 percent by the voters, and the council took a small step today to raise it from 6 percent to 8 percent," said McAdoo.

She expects it to raise a good amount of cash.

"We think it will raise somewhere around $125 to $300,000 a year for the general fund," said McAdoo.

The cannabis tax increase is set to take effect on July 1, 2026.

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