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SAN DIEGO (KGTV) — The San Diego City Council raised the cannabis tax in March 2025 to bring in more revenue, but the outcome has not been what they expected.

Receipts show the city’s cannabis business tax projections are falling short by about $1.5 million.

Meanwhile, many cannabis customers are feeling the impact of the city’s tax. A cannabis product that costs around $30 on the shelf can end up costing more than $40 at checkout in San Diego due to the 10% city tax stacked on top of the sales tax, plus the 15% state excise tax on cannabis.

It all adds up quickly, and workers in the industry say it is changing where people shop.

Luis Ituarte with Wellgreens, a company that operates 11 dispensaries across San Diego County, said customers are leaving the city to buy in nearby communities with lower tax rates.

Customers are also finding creative ways to secure the best prices, sometimes opting for a new shop each visit to take advantage of first-time buyer deals.

Others may be turning to the illegal market, where prices are cheaper but products are unregulated.

“It’s really hard to explain to customers why it’s more expensive to buy our products,” Ituarte said. “They don’t understand that you have to get lab-tested results, and there’s a lot of infrastructure and licensing fees that make those prices go higher.”

Ituarte said that since the tax increase in May 2025, sales have dropped at their San Diego locations, while stores in Chula Vista, Lemon Grove, and especially La Mesa are seeing stronger business.

La Mesa’s cannabis tax rate is just 4%, and it also has less restrictive zoning, allowing more dispensaries per capita than San Diego.

ABC 10News reached out to City Councilmember Henry L. Foster, who cast the only “no” vote on the tax increase last year, for comment but did not receive a response as of publication.

County health officials Thursday urged residents to protect themselves from measles by vaccinating as cases surge across the country, including local cases in Los Angeles and Orange counties.

No cases have yet been recorded in San Diego County this year, but five cases in those above counties have led to exposures in Disneyland, airports, restaurants, shops and other public spaces.

According to the U.S. Centers for Disease Control, measles is one of the most contagious of infectious diseases. If not immunized, a person exposed to someone with measles has a 95% chance of becoming infected.

“If you have traveled internationally or nationally near an outbreak area and are experiencing fever and a rash, call your healthcare provider immediately,” said Dr. Sayone Thihalolipavan, county public health officer. “Measles can be a very dangerous illness, especially for babies and young children.”

Measles spreads through tiny airborne droplets that can linger in the air for hours and survive on surfaces. The virus — declared eliminated from the United States in 2000 by the World Health Organization due to the success of vaccination efforts — is making a strong comeback with a record 2,267 cases and 49 outbreaks reported nationwide last year — nearly all among those who are unvaccinated. January 2026 marked the highest number of cases for that month in 26 years, a county statement read.

An ongoing, large outbreak in South Carolina has reached 876 cases, surpassing the 2025 Texas outbreak that reached 762 cases and claimed the lives of two children before it ended in August 2025.

Infants under 12 months are most at risk because they have not yet received the measles vaccine. Children over 12 months who are not immunized and people with weakened immune systems are also highly vulnerable.

Measles typically develops seven to 21 days after exposure. Early symptoms include fever, cough, runny nose and red eyes. A distinctive red rash usually appears one to four days after early symptoms start. A person is considered contagious four days before and four days after the rash appears. The rash typically begins on the face and head, then proceeds downward and outward to the hands and feet. It fades in the same order it began, from head to feet.

According to the county, measles complications are more common in children younger than 5 years old and adults 20 years and older. Complications can include diarrhea, ear infections and pneumonia. Death can occur from severe complications and the risk is higher among younger children and adults.

There is no treatment for measles. Bed rest, fluids and fever control are recommended. People with complications may need treatment for their specific problems.

“The best way to prevent measles and protect your child from getting sick is with a vaccine,” Thihalolipavan said. “Getting the measles vaccine is much safer than getting measles. Two doses of the vaccine are 97% effective at preventing measles, and more than 95% of a community should be vaccinated to prevent a measles outbreak.”

Children on a normal vaccination scheduled are inoculated with the MMR vaccine, which also vaccinates against mumps and rubella.

For more information about measles and/or other vaccine-preventable diseases, visit the county’s Health and Human Services Agency’s Immunization Branch online or by phone at 866-358-2966.