California Increases Marijuana Excise Tax, Making Legal Weed More Costly
Authored by Jill McLaughlin via The Epoch Times
Starting July 1, purchasing legal marijuana and cannabis products in California will become slightly more expensive as state legislators have approved a 4% increase in the excise tax on the industry.
Effective Tuesday, marijuana retailers will now pay 19% of gross receipts from cannabis and cannabis product sales. This increase adds to the state sales tax and any local taxes applicable to the business’s location.
California Cannabis Industry Attorney Jared Schwass expressed disappointment in the decision to proceed with the tax hike, stating that it will negatively impact businesses already struggling in the regulated market.
“California legislators fail to act,” Schwass shared on X last week. He pointed out that Senator Mike McGuire’s opposition to freezing the tax increase will burden constituents and hinder the industry’s growth.
Despite efforts by Assemblyman Matt Haney to repeal the tax hike through Assembly Bill 564, the bill was amended and ultimately stalled in a Senate committee, allowing the tax increase to proceed.
The United Food and Commercial Workers (UFCW) Western States Council supported the bill’s passage, emphasizing the challenges faced by legal cannabis businesses and the potential rise of illegal markets due to the tax hike.
The California Cannabis Operators Association initiated a petition urging legislators to reconsider the tax increase, highlighting the adverse effects on consumers, businesses, and public health.
Opposition to the tax hike came from various organizations concerned about the impact on childcare, youth programs, and environmental initiatives funded by cannabis excise tax revenue.
California relies on millions of dollars in cannabis tax revenue to support critical programs, with projections estimating over $600 million in revenue for the upcoming fiscal year.
Despite conflicting views on the tax increase, its implementation on July 1 signifies a significant change in the state’s cannabis industry landscape.
Article Source: The Epoch Times
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