San Jose cannabis tax revenue takes a hit

San Jose cannabis tax revenue is poised to drop by millions this year, as black market competition and delivery services chip away at the willingness of consumers to pay more.

According to projections in the city’s recently approved budget, recreational cannabis sold at one of San Jose’s 16 licensed dispensaries is set to generate about $15.8 million in tax revenue this year. That’s down nearly 13% from the 2022-23 fiscal year.