California Gov. Gavin Newsom’s proposal to eliminate the state cultivation tax on marijuana is a welcome move, according to industry officials.
But they argue the governor’s plan fails to go far enough to help an industry beset by high taxes, burdensome regulations and a robust illicit market.
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To compensate for the lost revenue from the elimination of the excise tax, for example, Newsom’s plan would raise the retail excise tax on marijuana purchases after three years, from 15% to 19%.
That and other provisions have triggered criticism of the overall plan from industry officials as well as state lawmakers.
“It’s a nice little Band-Aid for a functionally broken system that needs an overhaul, starting with reduction of taxes across the board,” said Doug Chloupek, the CEO and founder of Juva Life, a cannabis grower and life science research company with a cultivation arm in Stockton.
California Sen. Scott
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