7/7/22

"California is significantly overhauling its cannabis tax structure, including entirely eliminating a tax on growers, in an effort to boost a struggling legal industry begging for relief.

The changes, which were adopted last week as part of a broader state budget agreement, will also create tax credits for some cannabis businesses, expand labor rights within the industry and switch collection of a state excise tax from distributors to retailers. That tax will pause at 15% for three years, after which regulators could raise the rate to recoup lost revenue from discontinuing the cultivation tax.

Amy Jenkins, a lobbyist for the California Cannabis Industry Association who was heavily involved in the negotiations, said zeroing out the cultivation tax was a priority for the legal industry — something it has sought for three years."

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