Associated Press: California’s Marijuana Industry Gets a Break Under New Law Suspending Tax Hike

EXCERPT:

“We’re rolling back this cannabis tax hike so the legal market can continue to grow, consumers can access safe products, and our local communities see the benefits,” Newsom said in a statement, and that reducing the tax will allow legal businesses to remain competitive and boost their long-term growth.

An excise tax is a levy imposed by the state before sales taxes are applied. It’s applied to the cannabis industry under a 2022 agreement between the state and marijuana companies. It replaced a different kind of fee that was supposed to raise revenue for social programs, such as child care assistance, in accordance with the 2016 ballot measure that legalized cannabis.

For years, the cannabis industry has lobbied against the tax, arguing that it hurts an industry overshadowed by a thriving illicit drug market.

“By stopping this misguided tax hike, the governor and Legislature chose smart policy that grows revenue by keeping the legal market viable instead of driving consumers back to dangerous, untested illicit products,” Amy O’Gorman, executive director of the California Cannabis Operators Association, said in a statement.

FULL ARTICLE: California’s Marijuana Industry Gets a Break Under New Law Suspending Tax Hike