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City of San Diego’s cannabis tax revenue falling short

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City of San Diego’s cannabis tax revenue falling short


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.

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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.

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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.





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Washington Nationals vs San Diego Padres Game Thread

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Washington Nationals vs San Diego Padres Game Thread


The Nats had chances to win last night, but they came up short. Some of the weaknesses at the back end of their roster showed up, and they lost 7-5 in a bullpen battle. Now they will look to bounce back at home against a tough Padres team.

Blake Butera has made some peculiar changes to the lineup. Clearly, he wants to go lefty heavy. The struggling Jorbit Vivas will start over Curtis Mead. Jose Tena will also be starting at DH. That means James Wood will go to right field and Dylan Crews will slide to center. Drew Millas will also be back behind the plate. Foster Griffin will be on the bump.

The Padres have a very similar lineup to last night. Rodolfo Duran will replace Freddy Fermin behind the plate. Otherwise, it is the same personnel. We saw Jackson Merrill and Fernando Tatis start to wake up, so hopefully that does not continue. Blake Butera’s college teammate, Michael King, will be on the mound.

The Nats will look to avoid going under .500 in this one. Michael King will be a good test, but this lineup has been resilient. Hopefully Foster Griffin can build on his strong outing against the Braves. If they don’t win today, those narratives about the poor home record will re-appear. Follow along in the comments down below and let’s go Nats!

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Letters: Stop taxpayer funds for short-term rental trash 

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Letters: Stop taxpayer funds for short-term rental trash 


San Diego taxpayers are subsidizing the short-term rental industry’s trash collection under the People’s Ordinance. The 2017 letter from the city attorney to Councilmember Zapf is crystal clear: transient occupancy (rentals under 30 days) generates “nonresidential refuse.”

The city is prohibited from providing free weekly collection to these units. Yet, thousands of whole-home STRs continue to receive curbside service at taxpayer expense. Measure B (2022) modernized funding but left the core definition intact — transient rentals remain ineligible for city residential service. 

Requiring owners to arrange and pay for private hauling would shift the full cost off the general fund. With roughly 7,954 active licenses, and residential collection costing about $520 per unit annually, the city could save approximately $4.1 million a year. That money could repair streets, fund public safety or lower taxes for actual residents. Enforce the ordinance as written.

— Gary Wonacott, San Diego

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San Diego teen organizes Eid goodie bags for children after Mosque tragedy

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San Diego teen organizes Eid goodie bags for children after Mosque tragedy


SAN DIEGO (FOX 5/KUSI) — As the Muslim community prepares to celebrate Eid al-Adha next month, a San Diego teenager is working to bring comfort and joy to children impacted by the recent tragedy at the Islamic Center of San Diego.

Seventeen-year-old Sarah Abdin spent the past week fundraising, shopping and assembling nearly 100 Eid goodie bags for students at the mosque’s elementary school.

While many teenagers are focused on final exams, Abdin said she spent some nights working until 2 a.m. to make sure every bag was ready in time for the school’s upcoming graduation celebration.

The project was inspired by the recent shooting at the Islamic Center of San Diego, where children were present during the incident. Abdin, who attended the mosque as a child, said hearing about what students experienced motivated her to take action.

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Each bag contains a variety of treats, activities and gifts intended to help children celebrate Eid, one of the most important holidays in Islam.

Abdin said community members quickly rallied behind the effort, helping raise funds and support the project. After days of shopping and preparation, she and her sister spent several hours assembling the bags ahead of delivery.

The goodie bags are expected to be distributed during the elementary school’s graduation festivities in early June.

Abdin said she hopes the gesture serves as a reminder that the children are surrounded by a community that cares about them and stands beside them during difficult times.

The fundraising effort received widespread support, helping cover the cost of the goodie bags and allowing organizers to expand their reach to more students.

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