Earlier this month, Marysville Finance Director Jennifer Styczynski provided the city council with an update on the city’s finances halfway through the 2020/2021 fiscal year.
One key takeaway from her presentation was that revenue from the cannabis business tax exceeded expectations from what was previously budgeted.
The city budgeted for $400,000 in revenue from cannabis and has already collected $361,000. On Tuesday, the city council approved budget adjustments that included adding $380,000 in cannabis tax revenue to the general fund total.
Styczynski said the city is estimating it will receive about $65,000 a month from cannabis business tax revenue for the rest of the fiscal year and will end the fiscal year with almost double the amount that was budgeted for.
Part of the reason cannabis revenue will be higher than anticipated is that Wild Seed Wellness, one of two dispensaries operating in Marysville, received approval to start selling for recreational use as well as medical use. Representatives from Wild Seed Wellness could not be reached for comment.
Prior to Wild Seed being approved, only the Perfect Union dispensary was selling for recreational use.
Perfect Union CEO David Spradlin said business in Marysville is good. Compared to some of the other cities Perfect Union operates in, Spradlin said the Marysville location is one of its largest in terms of revenue and traffic.
Spradlin said there has been about a three-fold growth since the Marysville location changed from medical use only to recreational adult use. In 2020, the company had year-over-year growth of 107 percent.
“So good all around but the jump in Marysville was great,” Spradlin said.
Perfect Union was approved in 2019 for adult recreational use sales. Spradlin said the Marysville location still offers medical use sales but it is hard to meet the criteria for medical use meaning recreational use represents the much larger revenue stream.
Spradlin said Perfect Union’s Marysville location sees about 600-700 people a day and there is a plan in place to expand the sales floor in the next couple of months.
“We want it to be a good user experience,” Spradlin said.
The process for Perfect Union to establish itself in Marysville took three years from starting to making its first sale in the city. During those three years Spradlin said Perfect Union received significant resistance from a small vocal group of residents who were at every meeting and were against cannabis being introduced into the community.
“Since we’ve opened, for our part, we’ve done as much as we can to be good stewards,” Spradlin said. “…Since we’ve opened, we haven’t had a lot of pushback.”
In November, Marysville voters passed Measure N, which amended the city’s cannabis tax by adding cannabis-related businesses that can be taxed. The amended tax took effect on Jan. 1 and will be in effect until 2024.
Measure N is expected to generate an estimated $300,000 to $470,000 annually, according to Marysville’s former interim city manager and current community development consultant Gene Palazzo.
Spradlin said while Perfect Union would like local tax rates to be slightly lower, he believes the amended rates are fair.
“I think it’s a good thing for the city,” Spradlin said.