The governor of California on Thursday signed a wide-ranging bill to restructure the state’s adult-use marijuana program, including by eliminating a cannabis cultivation tax, in an effort to provide industry relief and further curtail the illicit market.
AB 195, which builds upon an amended budget proposal that Gov. Gavin Newsom (D) unveiled in May, passed both chambers with nearly unanimous support this week. Stakeholders say the legislation is imperfect, but many feel the bill represents a significant, positive development in the evolving market.
The key provisions going into effect eliminate the marijuana cultivation tax and shift the point of collection and remittance for the separate 15 percent excise tax on cannabis sales from the distribution to retail level. Additionally, there will be no increase in the excise tax for at least three years under the proposal, which is expected to be signed by the governor and then take effect immediately.
Newsom didn’t directly mention the cannabis bill in a press release about the budget package he signed, but he said generally that the legislation “invests in our core values at a pivotal moment.”
“Building a better future for all, we’ll continue to model what progressive and responsible governance can look like,
Read full article on Marijuana Moment
