California eliminates cannabis cultivation taxes and 15% excise tax

[torrymark]

The approved text regarding the issues related to cannabis tax was disclosed in a budget trailer bill for the state of California. Anyone made this more clear ? Please reply .

 

[Creeperpark]

They can't make as much money as the illegal grows and so they are hoping to drop taxes will raise the demand for legal weed.

 

[Ancient Old Far]

When it comes to government isn't money which conveys power always one of the primary motivating factors? When it comes to " sin" taxes they lose all restraints.

 

[Hammerhead]

The gov will always find a way to take their lb of flesh.. What might look good is just a sheep in wolf's clothing. The bill doesn't remove the 15% tax.

Under AB-195, California’s cultivation tax of more than $161 per pound of cannabis flower will be eliminated completely. The bill, which marks a significant change to California’s tax structure for the legal marijuana industry, maintains the cannabis excise tax at its current rate of 15% for the next three years, after which the rate could be adjusted to replace revenue lost due to the elimination of the cultivation tax. Lindsay Robinson, the executive director of the marijuana trade group the California Cannabis Industry Association (CCIA), says that the “survival of the regulated industry is vital to providing ongoing tax revenues for the State and the advancement of public health and safety.”


This bill, beginning on January 1, 2023, would discontinue the imposition of the cultivation tax. The bill, beginning on January 1, 2023, would impose the cannabis excise tax on purchasers of cannabis or cannabis products sold in this state at the rate of 15% of the gross receipts of any retail sale by a cannabis retailer. The bill, for the 2025–26 fiscal year and every 2 years thereafter, would require CDTFA, in consultation with the Department of Finance, on or before May 1 of the fiscal year immediately preceding the applicable fiscal year, to adjust the cannabis excise tax rate by a percentage that will generate an amount of revenue that would have been collected pursuant to the cultivation tax imposed prior to its discontinuation under this bill, as specified, except that the bill would prohibit the cannabis tax rate from exceeding 19% of the gross receipts of retail sale.

Bill Text - AB-195 Cannabis.

leginfo.legislature.ca.gov