San Diego’s attempt to boost revenue through a cannabis tax increase in March 2025 might just be the classic case of good intentions gone awry. The city projected the new tax to generate more revenue, but it seems they underestimated how much customers would feel the pinch. With cannabis products now fetching over $40 at checkout, thanks to the hefty taxes piled on top of the sales tax, many are questioning if it’s worth it.

Luis Ituarte from Wellgreens, a company with 11 dispensaries in the area, has noticed a marked shift in customer behavior. Shoppers are crossing city lines to places like La Mesa, where the local cannabis tax is only 4%. It's a frustrating landscape, as many customers don't always understand why their favorite products have become so much more expensive, leading them to consider other options—including potentially riskier ones.

This growing trend is a bit ironic. The very taxes designed to help fund city services might be driving loyal customers out of town in search of better deals. As more people turn to lower-tax regions or even the unregulated market, one has to wonder: when does a tax hike start doing more harm than good? In the world of cannabis, it seems price is trumping principle.