On February 13, 2018, the Board majority (Williams, Wolf, Hartmann, and Lavagnino) approved an ordinance creating the cannabis tax rates and methods of collection, subject to voter approval on the June 2018 election ballot. On June 5, 2018, 75.83 percent of the voters of Santa Barbara County approved the cannabis tax measure (Measure T).
Why the history lesson? Recent comments by elected officials and misinformation by anti-cannabis allies in support of fundraising efforts show they do not recall the exact words of the cannabis tax ballot initiative which clearly said, “…estimated to raise between $5 and $25 million annually for general government purposes…” For those keeping score at home, the county’s cannabis tax receipts have consistently fallen within the range articulated in the ballot language. The revenue being collected matches what the voters approved.
Estimating tax revenues for budgeting purposes is difficult. I am confident that the county budget staff is doing the best that they can with the chaotic state of the legal cannabis wholesale market. While on staff, I was public about the substantial risk of cannabis tax revenue volatility as the state transitioned from 90 years of prohibition to legalization.