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California can grow tax revenue by cutting this tax

California can grow tax revenue by cutting this tax

June 19, 2022

"California could increase legal cannabis sales and bring in 123% more in total monthly cannabis-related tax revenue by 2024 by eliminating its cannabis cultivation tax, according to a new Reason Foundation study. Nearly two-thirds of cannabis sales in California are still taking place on the illicit market, estimates the report published by Reason Foundation, Good Farmers Great Neighbors, and Precision Advocacy. 

As a result of its lack of retail outlets and high taxes, California’s legal cannabis market has failed to meet expectations. It is just one-third the size that would be expected based on its population and adult-usage rates found in surveys by the Substance Abuse and Mental Health Services Administration. 

“High cannabis taxes are the biggest reason California’s legal cannabis market is struggling. Eliminating the cultivation tax is how the state can start to fix it,” says Geoffrey Lawrence, director of drug policy at Reason Foundation and author of the study."

Read the full article at The Leaf Online

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