Fox26: New Assembly Bill looks to pause another cannabis excise tax increase

EXCERPT:

The legal cannabis industry, which is subject to state and local taxes and fees, is constantly at a threat of being overtaken by the illegal untaxed industry,” Haney said. “Fully licensed legal businesses in California capture just 40% of the state's entire market, while the underground illegal market accounts for 60% of the overall market."

And this isn't the only statistic giving state leaders cause for concern.

Consumer participation in the legal markets plateaued at 40%, with more data showing that number declining.

This has allowed states like Michigan to pass California in sales. But that's not all.

Amy Jenkins with the California Cannabis Operators Association explained some more concerning numbers.

"Then the economic report, which has been referenced in your analysis and elsewhere, commissioned by the Department of Cannabis Control, affirms what operators have been saying,” Jenkins said. “California's cannabis excise taxes and licensing fees are 124% and 162% higher respectively than Michigan's. And altogether, our taxes and fees account for about 77.5% of total wholesale value. That is not a sustainable framework."

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