State Panel will begin Examining Taxes on California’s Licensed Marijuana Industry
The state Cannabis Advisory Committee has agreed to examine the impact of taxes that some growers and sellers have complained are too high. Chairman Matt Rahn, mayor of Temecula, stated
From my perspective, taxation is a fundamentally important component of the cannabis industry and has significant implications for all levels of that industry. Our committee should understand the nuisances of how state and local taxation influences issues such as regulatory programs, public safety, and illicit markets.
The committee is a citizen’s panel that is helping to set rules for the marijuana industry in California. It also decided to create a subcommittee to look into how legalized marijuana affects public health and young people. Some members of the panel were concerned that high taxes could drive some buyers back to the illegal market. The state is currently charging a 15 percent excise tax on retail sales, as well as cultivation taxes including a $2.75 levy per dry-weight ounce of cannabis leaves. Local sales taxes can also go up to 8.5 percent. We will have to wait and see what the committee’s examination reveals about the taxation on the licensed marijuana industry.