MANITOU SPRINGS, Colo. (KRDO) – Multiple Manitou Springs dispensaries tell KRDO13 their sales or foot traffic is down 30% or more in the month since recreational marijuana sales became legal in Colorado Springs – a drop they attribute to the sudden surge of new dispensaries now opening in the neighboring city.
To combat the sudden influx of competition, the Manitou Springs City Council is considering something rather unprecedented in an effort to keep cannabis consumers coming to the town: a massive reduction of their marijuana sales tax.
At a City Council regular session on May 20, city leaders discussed cutting that tax in half from 10% to just 5% in an effort to help local dispensaries like Starbuds and Maggie’s Farm stay competitive as they face a sharp drop in customers.
According to Colorado Springs city records, there have been 55 new recreational marijuana licenses issued in Colorado Springs in the first month since legalization. It marks a sharp increase in competition for shops in Manitou Springs, which previously only had to contend with competition from Pueblo County.
Ken Bair, Executive Vice President of Retail for Schwazze, the parent company of Starbuds, formerly known as Emerald Fields, says the Manitou location has been a standout store – up until recently. But now, foot traffic has sharply declined.
“We’re trending about 40% down since that date,” Bair said.
Starbuds isn’t the only shop feeling the impact. Just down the street, Maggie’s Farm reports a 30% drop in sales over the past month.
“We’ve taken a big cut, both in traffic and in profit,” Bill Conkling, Owner of Maggie’s Farm, told Manitou Springs City Council.
Now, Manitou city leaders are looking for solutions.
Tuesday night was the first reading for an ordinance that would lower the special tax on retail marijuana sales to 5%, the same as Colorado Springs. During the meeting, the City Council voted unanimously to support the cut.
It will need to pass on the second reading in early June to go into effect.
Stay up to date with the latest local news, sports, and investigations by downloading the KRDO13 app. Click here to download it from the Apple App Store. Android users can download it from Google Play here.
MANITOU SPRINGS, Colo. (KRDO) – Multiple Manitou Springs stores tell KRDO13 their sales or foot traffic is down 30% or more since recreational marijuana Read More
