Despite the concerns of California’s regulated marijuana industry and lawmakers, the state’s tax agency says it will carry through on plans to increase the cannabis excise tax rate from 15% to 19% on July 1.
The 26% increase, announced by the California Department of Tax and Fee Administration on Thursday at a cannabis advisory meeting, is the highest allowed under state law, SFGate and WeedWeek reported.
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The increase – the brainchild of Gov. Gavin Newsom, who is facing annual budget deficits in California projected to be in excess of $10 billion – was required if cannabis excise revenue fell.
And fallen it has, with California marijuana companies closing because of high taxes, competition from a booming illicit market and regulation-induced business expenses.
The
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