California lawmakers approve pausing 25% tax increase on legal cannabis industry
California lawmakers on Monday unanimously approved a bill that would pause an impending 25% tax increase on the state's legal cannabis industry, as it struggles to compete with the black market.
In a 74-0 vote, the Assembly approved . AB654 would prevent the tax increase, scheduled for July 1, from going into effect.
"If we continue to pile on more taxes and fees onto our struggling small cannabis businesses, California's cannabis culture is under serious threat of extinction," Haney said in a statement.
According to Haney's office, the state's licensed cannabis market is in a "sharp decline" with plummeting sales and tax revenue. Other states such as Michigan, are reporting steady growth in cannabis sales, which he credits to lower taxes and fewer barriers.
"If we want to support our cannabis industry that drives millions of visitors to California every year, adding more costs makes absolutely no sense," the assemblymember added.
In 2016, voters approved Proposition 64, which legalized the possession, cultivation and sale of cannabis for recreational use, along with a 15% retail excise tax.
"Nearly a decade after Californians overwhelmingly approved cannabis legalization, the industry is struggling under the crushing weight of a 15% excise tax. Any increase, particularly a 25% increase, would not only be bad public policy, but devastating to operators already on the brink," said Caren Woodson, who is president of the California Cannabis Industry Association.
AB564 now goes to the State 365bet官方网站 for consideration.
