California’s cannabis industry is acknowledged as one of the most profitable in the United States, with the industry yielding $333 million in cannabis taxes during the second quarter of 2021. However, state lawmakers are moving at a snail’s pace to lower cannabis taxes.
Cannabis industry taxation in California is starving companies of the opportunity to thrive, compete, and profit. The state’s hefty cannabis taxes are strengthening the illicit market, and to make matters worse, the cannabis excise tax will increase to 15% of the average market price for all cannabis retail sales by July 1, 2025.
Fortunately, in an attempt to reverse what Natalynne DeLapp, executive director of the Humboldt County Growers Association, describes as a “statewide issue,” local governments are pushing to provide cannabis businesses with the tax relief that they so rightly deserve.
Efforts to grant California’s cannabis companies with tax relief have escalated across various localities—including San Diego, Desert Hot Springs, Sonoma County, and Humboldt County—since local governments began channeling their energy into this area a few years back.
Ongoing advocacy efforts from local businesses, residents, and industry organizations have prompted California’s localities to extend tax relief to cannabis companies. California’s cannabis tax reductions have also emerged after experts, lawmakers, and licensed operators made allegations against the state for failing to adequately address tax reform issues—a situation that has been described as a “crisis” by many industry insiders.
Although Gov. Gavin Newsom (D) vowed to deal with tax reform back in January, he wasn’t exactly clear on the details. Nonetheless, progress has been made, with four state-level tax relief bills recently being introduced:
Currently, California’s business license holders must pay a state cultivation tax of $161 per pound of cannabis, in addition to a 15% excise tax and any taxes imposed by city and county officials.
So far, reports suggest that the following localities have already implemented, or are contemplating implementing, cannabis tax relief discounts:
Furthermore, a long list of California’s localities have approved resolutions urging the state to update its cannabis tax rules. They include the following:
It’s safe to say that the wheels on the cannabis reform express have certainly been set in motion. As of April 2022, 47 states have legalized cannabis in some form or another. However, the plant’s federally illegal status—U.S. law categorizes cannabis as a Schedule I drug—means that businesses operating in this industry cannot conduct transactions with…
Cannabis’ former reputation as a gateway drug may have been dispelled, but it turns out that there is some element of truth to the rumor: The plant’s progressively evolving status as a normalized medicine in 37 U.S. states and a recreational substance in 18 U.S. states is prompting a wave of change across America’s statehouses….
Researchers working at the University of Arizona College of Medicine in Tucson have refined a method of ketamine use in the treatment of Parkinson’s disease (PD). Specifically, the group focused on ketamine’s ability to relieve the side effects of a common treatment called Levodopa. Nicknamed “K,” “special K,” “cat valium,” and “vitamin K,” ketamine is…
Austin decriminalized cannabis possession, Vancouver is now home to some not-so-legal magic mushroom shops, and a British woman shared her life-changing medical marijuana journey. Let’s dive into this week’s cannanews. Austin Voters Pass Cannabis Decriminalization Bill Voters in Austin, Texas, have approved Proposition A, a ballot measure that decriminalizes cannabis possession and bans no-knock warrants….
Have you ever wondered whether one can be allergic to cannabis? Some may laugh at the suggestion of one being allergic to cannabis considering its widely known safety and efficacy. However, like most substances, there may be some individuals who are allergic to it. According to the Asthma and Allergy Foundation of America, more than…
The worldwide skincare industry, which is projected to inflate to $189.3 billion USD by 2025, could soon be merging more closely with…
There’s no denying the fact that CBD is dominating the wellness landscape. Increasing awareness of the cannabinoid’s medicinal effects is going hand-in-hand…
As if losing a limb is not hard enough, experiencing pain in the part of the limb that is no longer there…