Professionals Say Illicit Cannabis Industry Will Advantage From California Tax Hikes

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California has some of the steepest cannabis taxes in the nation ー but there&#8217s no relief in sight for struggling companies.

The California Division of Tax and Charge Administration (CDTFA) announced final week the markup price on California cannabis will improve come Jan. 1, sparking an outcry from the legal cannabis market which has struggled to push back against challenges like onerous regulations, slow adult-use cannabis adoption, and a robust illicit marketplace.

&#8220This is a big dilemma for the reason that the black marketplace outnumbers the legalized marketplace. And the price tag is just growing exponentially. Of course, this is going to be difficult for a lot of dispensaries and cannabis operators to compete. And if they can&#8217t compete, they go out of company,&#8221 stated William Bogot, co-chair of Fox Rothschild&#8217s cannabis law practice group.

CDTFA, which is essential to reassess the markup price for excise taxes just about every six months, announced final week the price will jump from 60 % to 80 % subsequent year. The agency also announced inflation-primarily based cultivation taxes, assessed when per year, will jump about four % for flower, leaves, and fresh cannabis plants.

The California Cannabis Market Association, a top trade organization, stated the move left its members &#8220stunned and outraged.&#8221

To Study The Rest Of This Write-up By Chloe Aiello on Cheddar
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Published: November 26, 2019

The post Professionals Say Illicit Cannabis Industry Will Advantage From California Tax Hikes appeared very first on L.A. Cannabis News.

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