Opinion: California legal cannabis market could soon implode

have surrendered their licenses this year; others are letting fields go fallow, unable to fund this year’s harvest.

For all the talk of equity and “righting the wrongs” of the drug war, all of this is taking place in an industry without bankruptcy protections, where individuals carry personal liability for business taxes, and where businesses are barred from writing off normal expenses. The state excise tax on a bottle of wine is 4 cents. For an eighth-ounce of cannabis, it’s $4.90 or over 100 times more. Products are also subjected to countless local taxes. A single product may be taxed at cultivation, manufacturing, distribution and retail. Some jurisdictions even charge a “road tax” for merely transporting products.

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