The state’s massive state taxes and growing black markets continue to crush the state’s legal pot sales.
California lawmakers announced a bill on March 24 that would give the legal cannabis industry a tax credit from the state’s high taxes as retailers struggle to withstand an increasing threat from the black market.
“If we continue to accumulate more taxes and fees on our struggled small cannabis businesses, California’s cannabis culture is under a serious threat of extinction,” Haney said in a statement. “Instead, we need to consider how we can support this industry, which has little opportunity to survive after legalization.”
The bill is scheduled to be heard in April by the Congressional Revenue and Taxation and Business and Occupational Committee.
The California Cannabis Industry Association said Monday that the industry is already struggling with 15% excise tax and the shattered weight of the illegal cannabis market.
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The law also called for the state’s Tax and Fees Department to adjust taxes every two years starting this year, and even tax rates that generate income that was raised by cancelled cultivation taxes but not exceeding 19%.
The marijuana plant is grown on January 1, 2018 at Green Pearl Organic Marijuana Clinic in Desert Hot Springs, California. Robinbeck/AFP via Getty Images
Newsom’s Office declined to comment on the proposed law on Wednesday. A spokesperson told the Epoch Times via email that the office has not commented on the pending laws.
On Monday, Nicole Elliott, director of the California Department of Cannabis Bureau, defended Newsom from allegations that he was responsible for the marijuana tax hike.
Several industry groups also publicly opposed the 2022 tax cut bill, including the United Cannabis Business Association, the California Cannabis Manufacturers Association, the Cannabis Distribution Association, and the California Cannabis Industry Association.
