California Cuts Cannabis Taxes To Heal Ailing Industry

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Gov. Newsom and the Legislature cut a California cannabis tax, but not everyone is convinced it’s enough to stabilize the legal market.

“It’s not enough at all. And it’s just simple math,” she said. “Our position has always been: We need tax reformJenkins, the industry lobbyist, said the three-year pause on the excise tax rate buys advocates more time to press their case.

The deal will allow equity licensees to get a $10,000 tax credit and keep a fifth of the excise tax revenue they collect for the next few years. But advocates had lobbied for more sweeping aid, such as a suspension of the excise tax altogether, to give their businesses a greater opportunity to establish a foothold.

In an interview, Bradford expressed frustration that the cultivation tax was completely eliminated for growers, who are overwhelmingly white, while equity licensees received far less. He said he worried that plan would only deepen racial disparities in the industry, where Black and brown communities targeted during the war on drugs have struggled to thrive.

“Without a doubt, there needs to be more work,” he said. “If we fall short of that, we’ll come back next session.”

 

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