The City of Santa Barbara is considering raising its cannabis retail tax, a move that could affect both local businesses and consumers.
Jeff Goebel, director of Canopy, a local dispensary, said the increase could have serious consequences for the industry.
“I think it’s unfair. It would crush all the cannabis businesses industry in Santa Barbara,” Goebel said.
On March 17, the Santa Barbara City Council will vote on a proposal to raise the city’s cannabis excise tax from 6% to 8%. City officials say the increase is part of a broader effort to generate revenue for the general fund and help close an estimated $5.9 million budget deficit for fiscal year 2026.
Goebel said the tax would affect consumers as well as businesses.
“It’s not just about us. It’s about the consumer coming in and not being able to afford what they want because of the taxes,” he said.
While the current recommendation is an 8% rate, the city has the authority to raise it to 20%. At the proposed rate, officials estimate the tax could generate between $200,000 and $400,000 annually.
Some city leaders have suggested the tax would apply only to recreational marijuana.
“I think recreational is good because it gives people the opportunity to just try it and see if it fits with their lifestyle,” said Aliana Hernandez, general manager of Santa Barbara Collective.
Others say they support the tax. Mike Robinson, a medical marijuana consumer, said, “Tax it, if that’s your choice to get stoned on Friday night.”
If approved, the new tax rate would take effect July 1.
