Tax hikes continue to hit the cannabis industry hard

Santa Cruz County is seeing a decline in its cannabis industry, with tax revenues falling far short of projections for the 2021-22 fiscal year.

County officials say that current revenues of $1.68 million are lagging behind projections by more than $1 million, and by $1.6 million for the previous year.

The County currently has 12 licensed retail locations in its unincorporated area, along with 76 non-retail businesses.

A total of six cannabis businesses have closed over the past fiscal year, a trend industry professionals say could continue.