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ABC Bakersfield: California marijuana industry faces new tax increase, threatening legal market
- Laura Braden
- Jul 7
- 1 min read
EXCERPT:
California's legal marijuana industry is facing a new challenge as the state excise tax on cannabis increased from 15% to 19% on July 1, potentially driving customers away from licensed dispensaries.
Ronald Allen, co-owner of a licensed dispensary in Bakersfield, worries the tax hike could put small businesses like his at risk. "It's affecting everybody across the board, everybody from the buyers to the growers," Allen said.
Individuals purchasing cannabis at legal dispensaries will now pay more for their products due to the 4% tax increase.
"We operate small, so it's not like we have 5-6 stores like in some areas where they would depend on one store to carry the other one. We don't have that benefit here, so yes, we can see that affecting that," Allen said.
