California lawmakers propose cannabis tax cuts to curb the state’s black market

In an effort to jump-start California’s sluggish legal marijuana marketplace, a group of Democratic state lawmakers proposed a bill that would for the next three years eliminate the state’s $148-per-pound cultivation tax on farmers and reduce the state’s 15% excise tax on retail sales to 11%.

The bill is designed to combat the state’s entrenched black market and provide a lifeline to legal marijuana businesses that are struggling with state and local taxes and time-consuming and costly regulations, Assemblyman Rob Bonta of Oakland, state Treasurer Fiona Ma and three other Assembly members said at a news conference.

A similar bill failed to clear the Democratic-controlled Assembly last year.

– Associated Press

6 comments on “California lawmakers propose cannabis tax cuts to curb the state’s black market
    • john ward on

      That was required in prop 64. We got something much different. I guess we need another proposition, or administrators that can follow it.

      Reply
  1. Doc Gee on

    The entire black market should be seen as an expression of civil disobedience against an ill-conceived, over-regulated, over-taxed, over-restrictive scheme.

    Until the regulatory regime is completely overhauled there will be unlicensed purveyors and I will be their customer.

    Reply
  2. Brown Dirt Farmer on

    When California starts controlling the number of grape plants they can grow forwine and their culitavatin licenses then talk to me about cannabis licenses. Cannabis licenses are way out of line for their costs. Grow 25 plants for 25,000 plants, there is no place in the middle. If you don’t have a corporation backer you are S.O.L. Mom & Pops operations are dead in the water.

    Reply
  3. Adam on

    The black market exists mostly because California cultivates cannabis for the whole country, just like it grows many other agricultural crops. The difference being that California is allowed legally to export those crops. Sure prices are high, but that’s more because of massive demand from out of State, and limited competition among retailers. It only costs $0.50/g to grow cannabis in a greenhouse, yet it costs $10-15 in the store. Only a few dollars of that is going to taxes, the rest is going to middlemen (retailers and distributors) and cultivators that are raking it in.

    The California regs aren’t nearly as big of a reason for the black market as Federal Laws that prohibit interstate commerce.

    Reply
    • Pat on

      Agreed. But, the ca. regs placed the vast majority in ca. that were doing it right for the 20 years leading up to the bait and switch by the state, back into that black illicit market. This places them at the same risk as someone whom never made the attempt to be legal in this state or any other. Meaning, the well meaning 99% are placed back into the same category as the really bad element in the eyes of a corrupt law enforcement union/brass that had a hand in getting it back to this. It increases an artificially imposed “business” for them. The business of cannibalizing their fellow man just to make a buck to round out their annual budget allotment justification. The state does not want to make it easy for folks to go into the business of pot, medical or otherwise. So they install a bunch of artificial barriers to keep the prices high ( for their purposes ) and the black market expanding within the state.

      Reply

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