San Diego marijuana dispensaries can now operate from 6 a.m. to 10 p.m., aligning with the state maximum, following a unanimous vote by the City Council.
The City Council approved the change Monday, just ahead of the new fiscal year.
For years, dispensaries were restricted to a 7 a.m. to 9 p.m. window, losing business to nearby cities and the illicit market. With the city counting on nearly $1.9 million in new tax revenue from cannabis operations to help address a $258 million budget deficit, the policy shift comes at a critical time.
“Having just passed a very delicate budget, we hope that the revenue numbers come through,” said Council President Joe LaCava.
Supporters say longer hours will help dispensaries better compete and improve public safety by reducing reliance on unregulated sellers. Dispensary owner Rakesh Goyal called it “the single greatest tool” in leveling the playing field with illegal operators.
The change follows the city’s first cannabis business tax hike in six years, which took effect May 1. Combined with a new 25% state excise tax increase starting Tuesday, more than 30% of every dollar spent at San Diego dispensaries will go to government coffers.
