Tax bill that could have boosted California marijuana businesses fails to advance

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A proposal to temporarily lower taxes on marijuana products in California likely will not pass the state Legislature this year.

The bill was designed to help licensed marijuana retailers compete with the illegal market, but the measure did not make it out of the Assembly Appropriations Committee on Thursday.

The bill, proposed by Assemblyman Rob Bonta, would have cut taxes on marijuana from 15% to to 11%.

The proposal came as tax collections have been far less than anticipated during the first year recreational marijuana has been legal California.

Last week, Gov. Gavin Newsom’s administration lowered marijuana revenue estimates by $223 million.

Bonta’s proposal would have lowered revenue by an additional $227 million in the fiscal year that begins July 1.

In a related development, California lawmakers advanced a bill to make it easier for marijuana retailers to use banks.

– Associated Press