Only two of the six permitted cannabis dispensaries in Santa Barbara County are open, and both are reporting lower sales than expected.

That’s contributing to Santa Barbara County’s cannabis tax revenues coming in under budget — again, according to Brittany Odermann of the County Executive Office.

Budget staff said the county received $4 million in tax revenues to date and about $5.7 million is expected by year’s end. That’s $1.8 million under budget, they said during a cannabis financial report last week.

Cultivation taxes, which make up most of the revenues, have fluctuated with the market.

In addition, most of the dispensary operators who applied for permits in 2021 still haven’t opened a retail storefront.

County Supervisor Bob Nelson suggested that a permit expiration time might “get the fire underneath them” and accused some of the operators of dragging their feet for years. Some have good reasons for delays, and some don’t, he said.

“They either need to get their permit or move on,” Nelson said.

The Board of Supervisors approved a cap of six cannabis dispensaries in unincorporated areas. Some local cities have approved them, capped them or banned them within their jurisdictions.

County leaders also capped cultivation acreage permits and approved a “use it or lose it” policy that gives growers a deadline to plant the amount of marijuana they proposed in their application. If they don’t, the unused acreage is removed from their permit and given to someone on the wait list.  

The four permitted dispensary locations that aren’t open say they anticipate opening sometime in the next year, Odermann said.

Dispensary Status

In her cannabis-related report on June 4, Odermann updated the Board of Supervisors on the dispensaries’ progress.

Orcutt: The operators at 1604 E. Clark Ave. are doing tenant improvements to their leased building, and the dispensary expects to open in late 2024. Other applicants for an Orcutt dispensary legally challenged the rankings, but lost their case.

Los Alamos: The operators at 520 Bell St. need to pay county fees to start a plan check review for new construction, but also expect to open in late 2024. The county Planning Commission reviewed and approved the project last year.

Eastern Goleta Valley: The operators at 4235 State St. demolished the existing structure and have construction applications under review.

Toro Canyon/Summerland: The operators at 3823 Santa Claus Lane plan to remodel the building and open between April to June of 2025. Neighbors opposing the business appealed the permit to the county Planning Commission, the Board of Supervisors and the California Coastal Commission, but lost their case.

Two locations of the Farmacy cannabis dispensary chain have already opened, at 6555 Pardall Road in Isla Vista and 3576 Madera Drive in Santa Ynez.

If any of the permitted dispensaries goes out of business, Odermann said the county would refer to its ranking system from 2021 and approach the No. 2 operator on the list to apply for the spot.