While cannabis revenues stumble across much of California, Ventura County collected nearly $6.4 million from cannabis growers in the latest fiscal year, surging more than 40% from the previous year. This growth defies broader market pressures that have hammered the industry statewide, positioning the county as an unlikely bright spot in a struggling sector.
The driving force behind this remarkable performance is Glass House, which operates approximately 94 out of 98 acres of the county’s approved cannabis cultivation sites. The company’s dominance isn’t subtle, it paid over 96% of total county cannabis tax for the latest reported fiscal year, contributing $6.2 million of the total $6.4 million collected. That’s what economists call market concentration with a capital C.
Glass House acquired its Ventura County farm location for about $93 million, shifting from vegetable crops to cannabis cultivation. The company moved into the former Houweling Nurseries facility in 2021 after purchasing the greenhouse operation. As of last fall, cannabis was cultivated in half of the company’s six greenhouses, with conversion plans for full changeover underway. The company ranks among California’s largest cannabis growers and operates significant acreage in Santa Barbara County as well.
Glass House’s $93 million investment transformed vegetable greenhouses into cannabis cultivation, establishing dominance across multiple California counties.
This local success story contrasts sharply with statewide trends. California cannabis tax revenues reached $237.4 million in Q1 2025, showing notable drops compared to some prior quarters. Regional market conditions have been battered by regulatory changes, oversupply, and falling wholesale prices that squeeze grower margins. Since cannabis taxation began in 2018, California has collected over $7 billion in total cannabis tax revenue.
The state’s regulatory environment continues altering beneath growers’ feet. California abolished the cultivation tax in mid-2022, but the excise tax rose to 19% in July 2025, potentially affecting local market dynamics. Similar to challenges faced in legal markets elsewhere, cannabis businesses struggle with limited banking access and often operate as cash-only enterprises. Average Q3 2025 wholesale prices per pound are projected at $178–$183, down from prior year highs.
Market pressures extend beyond pricing. ICE raids and other enforcement actions have affected company profitability and overall revenue expectations. Fiscal pressures on cannabis businesses are reflected in tightening gross margins statewide, making Ventura County’s growth trajectory even more remarkable.
For county officials, cannabis tax has emerged as a significant revenue source funding various budget areas. Preliminary budget documents now include cannabis tax as a steadily growing contributor to public finances, a welcome development as other revenue streams face uncertainty.
Glass House’s expansion and efficiency efforts are expected to stabilize local output and revenue contributions. The company’s ongoing production ramp-up suggests Ventura County’s cannabis tax windfall may continue bucking statewide trends, at least for now.
