La Mesa Raises Weed Shop Tax to Five Percent

La Mesa has fourteen legal cannabis stores. That is the highest number in East County. The city has reached its limit on how many shops can open. The city council just voted to raise taxes on these stores. Four members voted yes. One member voted no. The tax rate moves from four percent to five percent.

Right now, La Mesa has the lowest cannabis tax in the county. San Diego charges ten percent. Even after the increase, La Mesa will still be cheaper. City leaders expect to collect an extra six hundred thousand dollars each year. That comes on top of the two point five million dollars the city already makes from cannabis taxes.

Voters in La Mesa have weighed in on this before. In twenty sixteen, fifty three percent of voters approved medical marijuana shops, growing, and making products. In twenty eighteen, a large majority said yes to a city tax on cannabis sales. A year later, stores were allowed to sell both medical and recreational weed in the same place. Shops also won the right to use the word dispensary on their signs.

Some council members disagree about the tax hike. One member said she does not like how many dispensaries are in town. She voted against the tax because she thinks it hurts business. She said customers come to La Mesa for a tax break. Another member said the new signs will bring more foot traffic. She believes that extra business will outweigh the tax cost. The proposal still needs a second reading before it becomes law.