
Consume Cannabis Company, Carbondale’s first cannabis dispensary, opened in June 2020.
CARBONDALE — A unanimous vote Tuesday by Carbondale’s City Council has raised the city’s adult-use cannabis tax to its maximum, 3%.
City Council voted during its Jan. 14 meeting to revisit this month the question of raising the city’s cannabis tax to cover some budget shortfalls that arose from the COVID-19 pandemic.
After reviewing the city’s tax revenue reports, Carbondale City Council members on Tuesday expressed interest in raising the city’s cannabis tax to make up for pandemic-related revenue losses.
City Finance Director Jeff Davis gave a fiscal presentation to council Jan. 14. In his presentation about the city’s 1% sales tax, Davis told the council that as of December, the city's year-to-date receipts for the sales tax is are 1.92% above where officials had thought it would be — officials had budgeted taking in $3,294,949, but had actually received $3,358,198.
At the same time, revenue from the city's 2.5% home rule tax is down 5.73%. Officials had estimated the city would have taken in more than $5.5 million from that tax, but it had only made a little over $5.2 million as of December. Davis told The Southern that the months of June through August account for the shortfall.
In the state's adult-use cannabis legislation, cities can levy their own sales tax rate for adult-use cannabis to a maximum of 3%. Carbondale voted on its 2% sales tax rate for pot in October 2019, just before the law went into effect the following January. The city's first recreational cannabis dispensary opened this past June.