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2 Marijuana Dispensaries in San Jose Out Of Business

2 Marijuana Dispensaries in San Jose Out Of Business

San Jose, CA: Two cannabis dispensaries in San Jose have temporarily shut down, and the city might lose millions of dollars in tax revenue if they permanently close their doors.

Silicon Valley’s cannabis business is on high alert after the recent closures of MedMen and Herbs. While each business had its own unique reasons for closing, local cannabis advocates and merchants saw these losses as emblematic of the impact of San Jose’s exorbitant fees and taxes. They also predicted that it will encourage people to buy cannabis on the illegal market because of the low prices.

When its stock price plummeted to nothing, medical marijuana retailer MedMen—which was previously worth $1.6 billion—temporarily shuttered its San Jose outlet.

According to Sean Kali-rai, founder of the Silicon Valley Cannabis Alliance, the city stands to lose $100,000 in monthly tax income if the establishment does not reopen by the end of the year, as stated on its Yelp page.

The city of San Jose rejected Herbs’ request to renew its license, forcing the little mom-and-pop dispensary to shut down. The company owed the city hundreds of thousands of dollars in taxes. A loss of at least $1 million for San Jose’s budget could occur, according to Sharmi Shah, the shop’s attorney, although the company is working on reopening.

According to figures released by the city manager’s office, San Jose had 16 dispensaries last year, which took in $16.6 million. The city’s budget estimates that taxes will bring in approximately $15.8 million this year, down nearly 13% from the fiscal year of 2022–23.

If the two stores close permanently, Kali-rai predicted a $2 million loss in sales. The 16 dispensaries made $18.7 million in 2020, but since then, cannabis revenues have been declining.

Read More: Worker At Marijuana Shop Assaults Investigator During Attempted Store Closure in New York

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