Forbes: Upsurge Rocks The Wonky World Of California Cannabis Excise Tax

EXCERPT:

Despite rosy analysis and projections from the Department of Cannabis Control, I could not find a single operator who felt good about the excise taxes or the growth rate of the California industry.

"Raising the cannabis excise tax from 15% to 19% during a market collapse is the equivalent of throwing an anchor to a drowning industry,” wrote Alex Freedman to me by email. “AB 564 offers a critical lifeline to California’s legal cannabis market to help stabilize an emerging industry that supports tens of thousands of jobs and millions in state revenue.”

Freedman is president of the California Cannabis Operators Association, which represents 20 of the largest dispensaries in the state.

Eli Melroud, owner of the Solful manufacturing and dispensary chain, was blunt in his assessment of cannabis taxes in California. "The high taxes in California already make it difficult for the legal market to compete for customers,” he said. “Increasing the excise tax another 25% will only serve the underground market.”

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