California Ends Cannabis Cultivation Tax

California Ends Cannabis Cultivation Tax - | HempRevs

California Gov. Gavin Newsom (D) signed the state budget on Thursday which included the elimination of the state’s cannabis cultivation tax and a cap on the cannabis excise tax at 15% for three years, the North Bay Business Journal reports.

Amy O’Gorman Jenkins, a lobbyist for the California Cannabis Industry Association, told the Journal that she was “celebrating” the end of the cultivation tax, which many blamed for the state’s high cannabis prices and strong unregulated marketplace. A report by the Reason Foundation in May suggested that monthly cannabis tax revenues could double by 2024 were the cultivation tax to be eliminated.

“The Legislature seems to have grasped a lot of what’s affecting the cannabis industry. More work needs to be done, but I see this as a big win. To critics, I say this is a significant first step.” — O’Gorman to the Journal

Newsom supported ending the cultivation tax, but in May suggested that the tax revenues would need to be replaced and supported increasing the excise tax from 15% to 19% after three years.

California’s first-quarter cannabis tax revenues were $293.5 million, a 7% drop from $316.5 million in the fourth quarter of last year, according to California Department of Tax and Fee Administration figures outlined by the Journal.

The cultivation tax revenues were used, in part, to fund youth organizations in the state but the language in the trailer bill also called for maintaining a guaranteed level of support for those groups.

Get daily cannabis business news updates. Subscribe

Have an additional perspective to share? Send us a message to let us know, and if your comment is chosen by our editors it could be featured here.

Thanks for reading our latest news article. Stay up to date on the latest hemp news, sourced and approved by HempRevs. If you have any questions or comments, please feel free to leave us a message in the comments!

Sign up for our weekly newsletter to stay up to date on the latest Industry news and keep a look out for our next post!

Source Disclaimer: This article was was sourced from Ganjapreneur.com (the Original Publisher). In order to maintain the functionality, trust, and safety of HempRevs.com, the content sourced from the Original Publisher may have been altered. Read the original article here:
California Ends Cannabis Cultivation Tax

Latest Articles

Galaxy Treats Banner Ad - 300x600

Related Content

Leave A Reply

Please enter your comment!
Please enter your name here