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

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

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4 comments on “Tax bill that could have boosted California marijuana businesses fails to advance
  1. Pat on

    These small proposed fixes will do nothing to alter something that was severely broken out the gate. These proposals are much akin to prescribing aspirin to a patient with stage 4 pancreatic cancer… and, wasting the tax payer’s dollars in the process, on top of everything else.

    Politician’s like Bonta must have known they were making a huge mistake w/the crafting of this “law”. And now that the chicken’s are coming home to roost, he pretends to care with this. The black market is going to continuing intensifying, until another law is promulgated to reasonably relieve the pressure from this sector of the cannabis economy; by REALLY making a sincere effort to help these folks come out of the shadow’s.

    But, it’s not going to happen in this state. The Feds are going to have to nationally legalize weed to take the wind out of the sails of this corrupt ca. law. And the chances with that happening, I have even less hope. State of Ca.: You blew it for everyone, but yourselves and your cartel partner’s.

    • david on


      I take issue with your use of the term “Black Market”. Now that the consumer has made a solid indisputable decision to source their cannabis from non BCC cartel associates, now estimated to top eighty percent, and growing rapidly, it’s simply time to regroup and let the States regulatory “refer madness” scheme, crash and burn.

      It is only fair to call this the “Consumers Market”. Their choice has been made. The State of California out of greed for the almighty dollar has destroyed their ability to regulate this harmless plant.

      The mess here in California will be felt across the country. The major war on drugs removed less than 2% of growers marijuana. That felony bust now gets you a ticket. This creates a new opportunity for more and more cultivation that feeds the entire country. The chaos won’t stop until California has a viable system. And that doesn’t mean another 300 pages of rules and regs.

      I wonder how our founding fathers would look at what we have done to this plant: Here is what they said then.

      • President Thomas Jefferson urged about hemp:
      “Hemp is of first necessity to the wealth & protection of the country.” [Eazy Smoke]
      • President John Adams suggested on hemp:
      “We shall, by and by, want a world of hemp more for our own consumption.” [Eazy Smoke]
      • President George Washington advised on hemp:
      “Make the most you can of the Indian Hemp seed and sow it everywhere.” [Eazy Smoke]
      Jefferson also said

      • Pat on

        Hi David. Let’s discuss!

        When consumers and “providers” are forced to into cloaked transactions, it’s not a “consumer’s market.” It falls into the traditional black market def…

        It’s how they whole game is set up. And you can thank the original cartels their remora associates and the legislature to get it to where it is now w/cannabis in ca. I agree that the whole scheme is corrupt on the govt. side; and it places many rather innocuous and harmless people on the wrong side of the law. But the govt. isn’t going to care what YOU and some others want to call it. It is what it currently is.

        When I was maybe 12 or so, my great grandmother thought it might be a good idea for me and my brother to take a bunch of homemade suckers ( she made them from scratch using antique molds/recipe ) and sell them at school. Some of the kids got trial samples and loved them. So, she got busy. And by 10am every day, me and my brother had sold out. Then came the knock on the door by two men in plain clothes, dressed nicely. They were there because there were complaints that the kids were spending their lunch money on the suckers AND probably because the govt. wasn’t getting their cut. So that little endeavor ended after about a month. It WAS a black market, nevertheless ( unbeknownst to me, or even my great grandmother ). No associations with violent and armed notorious criminals. Just a great grandmother that wanted to do good for her grand kids.

        Cannabis is NOT an entirely harmless plant. It can be misused and abused. It can harm children’s development. But, there are a lot of substances out there that do the same and more harm, that aren’t regulated much or at all. ( Thanks to lobbyist’s that don’t give a damn ). It’s just the money that weed brings in that catches the govt’s attention; and corrupts into its current iteration.

        My personal opinion, I largely agree with you. 215/420 worked fine; so long as everything was tested/properly labeled and sold to 21 and over. I also believe prostitution should be legalized everywhere, and that there’s reasonable public/environmental health oversight. And, be 18 and over. It was once legal in some counties in ca. prior to the 1950’s. The tax revenue from this old idea would make the whole cannabis thing look like a waste of time.

  2. Carol Jean Vogelman on

    I was already in trouble I live on disability alone and need CBD oil for myself & my SD!
    She thrives on it: 13 July 4, a few drops makes her a fluid, happy little IG with a great coat! My SD is brilliant & her well being is a matter of first importance! She will take it her whole life now, as will I!
    And so expensive but now with tax when it is my medicine (disabled with chronic pain; liver cancer, FMS/CFS both cops & Crohn’s) I am out till the 1st
    and so sad! Also I spend 80$ on a vape cartridge as well it goes deep & very effective and I get a care package!

    The new tax put me over the top is it legal to tax medicine?
    Whoever in govt got the idea to tax disabled living on pennies for seriously needed medicine undoubtedly never believed most users were really “sick wink wink” so
    Always thought we should tax it but I am furious; I don’t want to go to DHS or whatever and pay them 50$ to get a discount on the tax they can suck eggs! …Because disabled have nothing better to do! I am just furious and I question the legality of it but I get any flower from a friend, very good quality, fair price! If He had CBC oil I would use him

    Who do we contact higher up about this? Because for me it is what keeps me out
    Of the emergency sometimes or makes walk to doctor doable!
    .thank you

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