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Santa Clarita, Calif.: Cannabis Costs Probably Outweigh Revenue

City officials didn't formally project the numbers, but anecdotes from other municipalities are giving them pause.

California

Santa Clarita officials didn’t formally project revenues that would have been brought in by pot sales, but everyone else told them the cost would outweigh any profit, city officials said Monday.

The city of Santa Clarita consulted reports from Colorado and Southern California for research before it prohibited commercial land uses associated with cannabis and regulating home cultivation at the April 10 City Council meeting.

Representatives from Denver County and and Colorado cities Fort Collins, Centennial and Aurora told Santa Clarita officials that the revenue generation from issuing cannabis business licenses was generally neutral, or offset by the cost associated with enforcement, said David Peterson, associate planner with the city’s Planning Division.  

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Fort Collins, Aurora and Denver County all allow commercial land use associated with cannabis, while Centennial does not.

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Top photo courtesy of Adobe Stock

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