California lawmakers on Friday revived a proposal to temporarily cut taxes on marijuana to boost a legal market that one official said is “on the brink of collapse,” drawing encouragement from Gov. Gavin Newsom as he seeks to overhaul state pot regulators.
“With these steps, we believe that we will be supporting the regulated marketplace for cannabis in California. It will also help reduce and shrink the unlicensed, illicit market.”The tax cut was also supported by State Treasurer Fiona Ma and co-authored by three other legislators, including Republican Assemblyman Tom Lackey of Palmdale. He said Assembly Bill 1948 will “provide relief to an industry that’s clearly on the brink of collapse.
Even so, Newsom’s new budget proposes combining licensing and enforcement at three state agencies under a new Department of Cannabis Control by July 2021. Newsom has also proposed simplifying the tax structure by moving the point of collection for cannabis taxes from the final distributor to the first and the retail excise tax from distributor to retailer. He said such a plan wouldeliminate a need for the state to estimate an average mark-up rate on cannabis products to determine a wholesale tax rate that ensures the tax paid by the distributor is equal to 15% of gross receipts at retail.
That would explain the decisions they make they are always high🤢🤪🤯🤡🤖👺👹
Of course California screws up a cash cow.
Every government intitiative will cost three times as much as claimed and will at best deliver half the good things promised. Often worse performance than that.
The “industry” is on the brink for a simple reason. The Mexican cartels run the show in California. The majority of the weed comes from Mexico...but the politicians will never admit that. With open borders, it’s simple to smuggle the weed in. Do some research.
Y'all literally just started this industry a few years back and you're already sucking it dry lol
491300363 What about other businesses on the brink? You got the right idea, now keep going...
Ya think? When it's cheaper on the black market than the ' legal way' where are you gonna go?
Imagine that… Cutting taxes to increase demand for something—What a novel idea
Pot smokers shouldn't support the corporatization/taxation of weed.
So, you’re admitting tax cuts helps industry?
The article says they are creating a new government agency to deal with it. Classic, pretend to lower taxes and create bigger government all at the same time. Wasn't Reagan from California? Seems like I've heard this one before.
Illinois are you paying attention?
Making movies on California is legal too, but they still have to cut taxes if their going to strengthen the industry vs competition from Canada and Georgia
Another srcrrw up by our elected officials!!
Ya think? While they’re at it, cut taxes across the board, we’re struggling out here.
Hahahahaha. It’s the California law makers that’s wanted to tax the hell out it. Just goes to show you the Dems have NO clue what they are DOING in California!!!! I love it!!!
Funny how they now think cutting taxes will help businesses but only for people growing pot. Just amazing selective conservative policies just to help people get high.
If you can’t make money on weed, then you have no business, being in business.
I was told taxes was the reason they legalized? Supposed to generate revenue or something like that?
How about cutting taxes on the rest of us who actually run honerable and respectable businesses?
Only a government entity could screw up selling weed.
Why not do this for all industries?
But but According to Dems and MSM tax cuts don’t work...
Who could’ve predicted this?
I, for one, am shocked the state of CA didn’t realize that setting taxes so high on product people have been purchasing tax free since the 1930’s would discourage legal sales and bring in far below expected revenues. SHOCKED.
Who would've guessed over taxation kills businesses and people?
THAT'S SO GENERATION X. THAT'S SO 90's.
The whole of the industry was for the tax revenue.
Why don’t they just...actually legalize it? Don’t tax it more than anything else. Don’t put limits on how much you can buy or grow. Don’t license certain businesses in far away warehouse districts to sell it. Don’t restrict people from using it in public places or at events.
Pot taxes should feed and house the homeless...
They didn't say 'pot' as they were cognizant of the fact that it was no longer 1969.
I agree. Sixty an eighth for the sweet sticky alternative to alcohol is too much. It’s going to go underground again and you’ll lose money 🤔🤨😎
Yet another failed California policy.
Illegal weed outsells legal weed 4 to 1. Newsom economics again.
Not as many losers as The California Cartel thought, eh?
The industry is on the brink? Gtfoh
Make Pot free
Would you pleeease stop using the term “black market” 😓
These are the papers that hipsters want
What is it 20% and they take a photograph of your drivers license and put it in the system. Everyone I know goes to the unlicensed shops.
Who would have thought illegal weed could be so profitable but legal weed not profitable at all.
Now they cut taxes.
Raise. Don’t cut.
The industry was fine until it was legalized! That fucked up everything!!
weed out the competition
Eliminating the salaries of California lawmakers should fix everything.