San Diego’s cannabis dispensaries might soon extend their operating hours, which currently end at 9 p.m. This change aims to keep local customers from seeking late-night cannabis options in neighboring cities such as Chula Vista, La Mesa, and Oceanside.
On Wednesday, a committee from the San Diego City Council will review a proposal that could allow dispensaries to remain open from 6 a.m. to 10 p.m. This would align San Diego’s hours with those of many surrounding cities and adhere to state regulations. Currently, local law restricts dispensaries to operating between 7 a.m. and 9 p.m., which has drawn criticism from both customers and business owners.
The push for longer hours comes as the city grapples with a substantial budget deficit estimated at $258 million. To address this shortfall, city officials are exploring various revenue sources, including taxes on cannabis sales. The city anticipates that extending dispensary hours could generate approximately $1.9 million in revenue for the upcoming fiscal year, starting July 1. Of this amount, nearly $1.7 million is expected to come directly from the dispensaries.
This proposal follows the recent implementation of a 25% increase in business taxes for cannabis dispensaries, which took effect on May 1. This tax hike marks the first increase in six years, meaning dispensaries will contribute a greater share of their sales to the city’s finances. Additionally, the sales tax collected during cannabis purchases is projected to add another $170,000 to the city’s budget.
Matt Yagyagan, director of policy at the mayor’s office, emphasized the potential economic advantages of extending dispensary hours in a report to the Planning Commission. He noted that longer operating times could improve local business competitiveness and increase tax revenues.
The Planning Commission first proposed the extended hours during a unanimous vote on May 29, paving the way for the current committee review. If the Economic Development and Intergovernmental Relations Committee approves the proposal, the full city council will consider the measure this summer.
Public input on the proposed changes will be welcomed during a hearing scheduled for June 23, where residents can express their support or opposition to the extended hours. As San Diego looks to stabilize its budget, the potential for extended hours at cannabis dispensaries represents a strategic move to boost local businesses and generate essential revenue.
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