Retail cannabis store in Farmersville
Will the Visalia City Council agree to allow retail cannabis dispensaries in town? This month the council took up some details on their planned cannabis ordinance including sales rules and restrictions on various cannabis businesses but did not address directly the BIG QUESTION, permitting retail cannabis dispensaries in town.
The backdrop for the discussion is that the State of California may further restrict local jurisdiction choice to manage retail sales making it prudent to develop local rules before that happens.
By a 3 to 2 margin in the past the council has not been a fan of retail pot sales in Visalia. But that may be changing.
At the latest work session the council did a tap dance in that direction – reading that consultant HdL predicts retail annual sales in the city of $18 million and translating to a sales tax revenue stream of as high as $1 million says city staff. If the tax rate was set at 10% it could add up to $1.8 million.
There was also discussion of the trend seen statewide and around the Valley of lower cannabis sales as well as a decline in revenue for towns that have a sales tax in place.
Still city staff is recommending the council move forward with retail outlets and after some discussion, the council seemed to agree on three stores in the city if they give the green light in coming months. They even focused on the hours of operations for retail stores coming up with a 9 AM to 9 PM schedule.
Here is the staff recommendation: Staff would recommend considering allowing retail and medical storefront and delivery only retail businesses, particularly if Council was to consider allowing distribution or manufacturing use types which could also act as fulfillment centers for retail orders.
So where in the city would be logical locations for retail stores? Some council members suggested they be freeway close or on Mooney Boulevard and others looking to revitalize existing areas in town. Council member Soto suggested the long empty building on Dinuba Boulevard formally the CVS drugstore spot as a logical location.
Regarding location, staff said they would visit with cannabis operators noting they are in talks with cannabis companies on setting up here.
None of this sounds like a hard ‘no’ – rather a tiptoe into a future cannabis business in Visalia while clearly looking to limit any negative impacts on the community.
As to the issue of rate they will be taking this up at an upcoming meeting. Already the industry has to pay 19% sales tax to the state as of July 1 – up from 15% right now.
That would mean some future retail shopper in Visalia would be paying 29% sales tax adding in the 10% rate here – if that’s what they choose. The industry has argued this combined tax makes it more likely customers will turn to the black market if tax rates are too high.
There is no doubt that revenue from the retail cannabis storefronts at nearby towns has been going down in the past year with Lemoore generating as much as $1.1 million for the city in 2022 but now falling to just $292,000 in 2024.
Tulare’s cannabis tax revenue is down but only slightly from $1.1 million in the current year to predictions that it will drop to $1 million in 2026.
In Fresno, news reports say the cannabis market in Fresno has not generated the tax income the city had anticipated, falling nearly $4 million short of projections. Initially projected to generate $7.1 million for the year, it now is expected to bring in just over $3.1 million.
Visalia is clearly coming late to the party with retail cannabis outlets in the Central Valley already found in Parlier, Coalinga, Porterville, Hanford, Mendota, Firebaugh, Woodlake, Coalinga, Porterville, Tulare, Lemoore, Farmersville and Fresno.
So Visalia is being pushed and pulled over this issue wondering if the $18 million sales predictions is pie in the sky but realizing Visalia seems to support the city’s plunge into the cannabis business with 70% voter approval last November.
In March 2025, the Visalia City Council approved a cannabis sales ordinance, but they set the number of cannabis businesses allowed at zero, creating a regulatory framework without allowing any businesses to operate at this time.
But now they are tip-toeing in that direction with staff saying they will return with more detail that could end up allowing three storefronts here.