Manitou Springs, Colorado, is facing a downturn in cannabis sales, prompting the City Council to consider reducing the local marijuana sales tax from 10% to 5%. This decision comes as local dispensaries report a significant decline in foot traffic and sales, attributed to the recent legalization of recreational cannabis sales in nearby Colorado Springs.
In the past month, several dispensaries in Manitou Springs have experienced a drop of 30% or more in customer visits. Notably, Starbuds reported a staggering 40% decrease in foot traffic since the opening of new dispensaries in Colorado Springs. Maggie’s Farm, another local shop, has seen its sales decline by approximately 30% during the same period.
The surge in competition stems from Colorado Springs issuing 55 new recreational marijuana licenses within the first month of legalization, significantly increasing options for consumers. Previously, Manitou Springs dispensaries only faced competition from Pueblo County, making the current situation unprecedented.
During a City Council meeting on May 20, local leaders discussed the impact of the new competition on local businesses. The proposed tax reduction aims to keep Manitou Springs dispensaries competitive. The first reading of the ordinance to lower the tax rate was unanimously supported by the council members. A second reading is set to take place in early June, which will determine if the measure is enacted.
The financial health of Manitou Springs’ cannabis shops is at stake, and city officials are taking action to support local businesses in the face of increased competition. As the cannabis market continues to evolve in Colorado, the outcome of this proposed tax adjustment could have lasting implications for the local industry.
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