Cannabis Sales in Redding Take a Dip
According to the California Department of Tax and Fee Administration, cannabis sales at retail stores in Redding have decreased for the second consecutive year. This decline comes on the heels of the Redding City Council’s decision to increase cannabis taxes, which faced opposition from the industry.
The revenue generated from cannabis sales taxes flows into Redding’s general fund, while fees collected from local cannabis businesses are used to cover the costs of business license permits. In the past, these fees have also been used to fund pay raises for legal staff, who oversee the city’s cannabis code enforcement division.
Lynn Silver, a senior adviser with the Public Health Institute, a non-profit that studies cannabis, emphasized that while tax revenue from cannabis is positive for cities, it also comes with costs, including public health concerns and negative outcomes for individuals. Silver’s organization recently released findings that suggest the industry and local regulators in Redding, Shasta Lake, and Anderson are not doing enough to prevent underage youth from accessing cannabis products.
Despite the decline in sales, Silver urged residents not to be overly concerned about the tax revenue drop, citing the importance of balancing the benefits and drawbacks of cannabis taxation.
