California has some of the steepest cannabis taxes in the nation ー but there’s 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.
“This 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’t compete, they go out of company,” stated William Bogot, co-chair of Fox Rothschild’s 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 “stunned and outraged.”
Published: November 26, 2019
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