Licensed cannabis stores in California would have to attract almost 200 extra customers a month to keep revenue steady if taxes increase on July 1, according to one retailer’s analysis.
And that’s simply an unreasonable expectation at a time when cost-conscious shoppers are further encouraged to find cheaper cannabis on the illicit market, industry representatives told MJBizDaily.
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“With every new tax, we’re pushed to the edge of survival,” said Rami Kassis, the general manager of Mission Cannabis Club, a legacy retailer with three locations in San Francisco.
Despite widespread concerns about overtaxation and the illicit market, California’s current 15% excise tax is nonetheless set to increase to as much as 19% this summer.
That increase is baked into an agreement that eliminated the
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