Marijuana tax revenues surpass city projections

Marijuana tax receipts for the first quarter of the 2019-20 fiscal year have already exceeded the city’s budgeted amounts.

The city budgeted about what it received in the prior year, about $27,400, said city Finance Director Brandon Neish. Marijuana tax revenue was $32,468.12 for July through September.

Of that amount, about $7,000 was from state revenue sharing, which is a tax collected and distributed to local governments by the state. Neish said that matches what the city budgeted for 2019-20.

Of first quarter revenue, about $25,000 was from the local 3-percent marijuana tax. That represents more than $833,000 in Sweet Home marijuana sales for the quarter.

If the tax revenue continues at that rate, total tax revenue would reach more than $100,000 for the fiscal year.

Marijuana tax revenue is transferred to the Police Department budget, Neish said.

Surplus tax revenue will be carried over into the next fiscal year, 2020-21, which begins on July 1.