WeHo cannabis tax revenues rise as others decline

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According to Emerald Village West Hollywood, the city collected $1.5 million in taxes from adult-use cannabis sales in 2021, which increased to $1.9 million in 2022. Meanwhile, Washington, Colorado, Oregon, and California, the four oldest legal adult-use cannabis markets, all saw a decline in tax revenue from cannabis sales ranging from 7.7% to 21%, as reported by Emerald Village.

The association stated that West Hollywood generated almost three times more revenue from cannabis per resident than Los Angeles, with $704 per resident in adult-use cannabis in WeHo, compared to $250 per resident in Los Angeles. Scott Schmidt, the executive director of Emerald Village West Hollywood, attributed the popularity of cannabis sales to the city’s welcoming environment and approach to cannabis culture, adding that “Our city is committed to creating safe and welcoming environments for cannabis enthusiasts and industry professionals alike, and the revenue trends show that our approach to embracing cannabis culture is working.”

West Hollywood follows a merit-based process for assigning cannabis licenses, requiring applicants to submit a detailed description of their innovative business model, connection to West Hollywood, proposed operations, social equity and product offerings, interior and exterior design concept, security plan, and experience. Each application is then reviewed and scored by members of the West Hollywood’s five-member Cannabis Application Evaluation Committee, with the top eight scoring applicants in each license category eligible to secure a business license.

Dispensaries in WeHo include MedMen, Zen Healing Collective, Alternative Herbal Health Services, Calma, and The Studio Lounge. WeHo also hosts L.A. County’s only consumption lounges, The Artist Tree and The Woods (owned by Woody Harrelson and Bill Maher), with more on the way, such as Greenwolf on the Sunset Strip.

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Rose
Rose
11 months ago

Not to not pick. But comparing the generous population of 35,000 to the City of LA (what 7million not sure) kinda makes the “per resident” statistic kinda meaningless

Steve Martin
Steve Martin
11 months ago
Reply to  Rose

Exactly, particularly when a large amount of product is sold to people visiting West Hollywood, rather than residents. In working class communities it is way cheaper to buy from your local “independent” dealer rather than pay higher prices due to packaging and taxes. I am happy for the revenue but its only an additional $400,000.00.

Rose
Rose
11 months ago
Reply to  Steve Martin

And is it hours or a day or two until the richest tiny city has no money for Sheriff, Crime, Social Services Mandated By Law To Pay for County Access to WeHo Residents.
Where’s the money?

Joshua88
Joshua88
11 months ago

Bravo!

Jeff
11 months ago

Hey remember when WeHo opened the first marijuana cafe and then the State Attorney General shut them down because their supplier wasn’t actually licensed to sell marijuana? What happened to that? How did this business pass the supposedly rigged WeHo vetting process? I bet half these weed businesses in WeHo are some sort of fronts for the mob or cartels. We’ve now had basically a feral cat zoo on the corner of La Brea and Lexington for three years now where this restaurant used to be.
https://la.eater.com/2019/12/30/21043115/cannabis-consumption-lounge-west-hollywood-lawsuit-lowell-original-cannabis-cafe

Preyed Upon
Preyed Upon
11 months ago

Perhaps Scott Schmidt should have stated that Weho is dedicated to losers and victims who are easily preyed upon be cannabis merchants and developer/ cannabis types. Why is WeHo in the sewer located next to Beverly Hills? Please question the folks driving the city.

Robert Davis
Robert Davis
11 months ago

Robert Davis: This mornings Wall St. Journal has a front page article-“Legal Cannabis Can’t Compete” detailing how nationwide illegal cannabis sales outstrip legal sales due to the high taxes on legal sales. They specifically mention California where the “problem” is worse. Something for WeHo to think about.

Enough!
Enough!
11 months ago

Great, everyone is stoned. 🙄

WehoQueen
WehoQueen
11 months ago

I love how they use the terms “pot enthusiasts”, and “dispensaries” to give them the air of some credibility and decency, when in fact the City has realized pushing drugs, (I believe both alcohol and marijuana are legally considered drugs), is what the city financial moneymaking model is all about. Then they endlessly talk about the need for AA meetings, while pushing more marijuana drug in the city to make money to give handouts to unsuccessful people. Wow. The hypocrisy is endless.

David Reid
David Reid
11 months ago
Reply to  WehoQueen

Not all that indulge in cannabis are unsuccessful. Find some happy. It’s harder than ever before but its there. Inside and out.

Ham Shipey
Ham Shipey
11 months ago
Reply to  David Reid

most are.

Cy Husain
11 months ago
Reply to  WehoQueen

Well maybe you will feel a whole lot better😁 knowing that my West Hollywood “handouts to unsuccessful people” check never arrived for me in the mail like my W-2s did❗

WehoQueen
WehoQueen
11 months ago
Reply to  Cy Husain

“Handouts” don’t come in the mail, like in the form of a check. They could be things like keeping your rent artificially low by only allowing your landlord to raise the rent an amount they decide, free meals, subsidized food, free community meeting space for druggies, etc. There is a way you can instantly become successful: move out of town, vacate your apartment so the landlord can rent out to someone paying fair market rent, and you pay fair market rent in another city you can actually afford to live in. In other words, don’t live off the back of… Read more »

Pete Strohl
Pete Strohl
11 months ago

It’s similar to making money off of gambling. Cigarette smoking has been replaced by pot…..and fully endorsed by our government. The hypocrisy.

JF1
JF1
11 months ago
Reply to  Pete Strohl

Yup.

08mellie
08mellie
11 months ago
Reply to  JF1

AND, let us not forget, weed is still Federally illegal. Last time I checked? Yes or yes?

Cy Husain
11 months ago
Reply to  Pete Strohl

Though smoking marijuana is NOT really good for you it is better than smoking cigarettes 🚬 (less harmful).

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