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Councilman Al Austin is asking the council to add up to eight new storefronts to the city’s roster which already has 32 retail dispensaries that were approved as part of a ballot measure in November 2016.
The spots would be set aside for applicants who qualify under the city’s cannabis equity program who have at least 51% ownership in the business.
Austin said that these applicants are being left out of the most significant revenue source in the industry; retail storefronts.
Last year cannabis tax revenue generated nearly $6.5 million over what city budget officials projected. However, nearly all of that money was generated by non-equity business owners.
The calls for social equity in cannabis continue to grow louder as the market matures and more states come online. While most in the space support social equity, its implementation and the market s taxation has the sector debating the need for high taxes to fund equitable efforts.
The topic is far from new in cannabis. Michigan, one of the top-performing markets in the country, recently debated new sales taxes aimed at improving diversity and helping disadvantaged groups in the industry through millions in taxes raised.
New York, a state debating the prospect of adult use legalization once again, is discussing how much of its estimated $300 million in annual tax revenue to allocate to social reform.