Woodlake releases early cannabis tax revenues, expects more

WOODLAKE, Calif. (KFSN) -- At Sub Station in Woodlake, longtime owner Sukhdev Singh says he has seen about 50 more customers a day since the arrival of Valley Pure, a marijuana dispensary.

"People come from Fresno, people come from Bakersfield, I see a lot of different people," Singh said.

Valley Pure customers buy food and drinks at Singh's store, but he also noticed they needed cash, considering that's the only payment dispensaries can accept.

So he raised the cash back limit from $40 to $100.

Valley Pure, which opened in May, is subject to the city's five percent tax on cannabis retailers.

Between April and June, taxes from the dispensary and various fees paid by other cannabis businesses hoping to call Woodake home totaled $46,397.

Officials say they're already using those funds to pay for playgrounds and a new police patrol vehicle.

But if the number seems low right now, they expect revenues to ramp up when a couple of cannabis cultivators and manufacturers open in the city.

One will occupy a former packing house on the city's west side.

Conservatively, city officials say they could take in three to $500,000 in the next year from all of their cannabis businesses.