7/2/22

"California lawmakers just passed a bill that will provide cannabis businesses relief from the state's excessive tax regime, but some advocates worry that it may not make enough of a difference.

The new bill aims to help Golden State adult-use cannabis companies stay in business by reducing their overall tax burden and providing several targeted grants. Most notably, the bill will eliminate the state cultivation tax, which requires every licensed grower to pay $10.08 for every ounce of dried flower, $3 for every ounce of dried leaves, and $1.41 for every ounce of raw plant material. Regulators actually just increased these taxes by 4.5 percent this year, so the change is even more welcome.

"The survival of the regulated industry is vital to providing ongoing tax revenues for the State and the advancement of public health and safety,” said California Cannabis Industry Association (CCIA) Executive Director Lindsay Robinson to MERRY JANE. “Eliminating the cultivation tax is just one step towards stabilizing our industry but it's an important one. Stability of the cannabis supply chain brings jobs and much needed tax revenue to the state while also protecting public health and safety and keeping cannabis out of the hands of children.”"

Read the full article HERE