Newsom announced a review proposal in May 13aimed at disqualification 150 million dollars to “temporarily cut taxes” and simplify the tax structure, while $21 million will go to local governments to help expand the cannabis retail footprint.
Newsom said In response to a question from A Bloomberg The reporter said that “…tackling exactly the persistent problem we anticipate will be an ongoing problem – dealing with the black market, going after illegal farmers and illegal operators,” Newsom explained. “Trying to level, trying to be flexible with respect to cost pressures related to the current tax structure, and not having it on the black market.”
“This is [the] The beginning of a process in my humble opinion, in terms of my reasoning,” Newsom continued. “This is going to be a multi-year process to get that black market, to get it on the decline — not the rise — and to put the retail market and the responsible adult use market on firm ground.”
In conjunction with Newsom’s statement, the Department of Cannabis Control has also issued a statement from Director Nicole Elliott. “We have heard from many of you that the current tax framework for cannabis is overly complex,” Elliott wrote. “We know that current tax policies disproportionately burden cannabis growers and small businesses and lead to instability throughout the supply chain, ultimately undermining the societal benefits of a taxable and regulated market.”
she Summarizing some changes In the proposal, which includes setting the agriculture tax at zero starting July 1, strengthening tax enforcement policies, adjusting the deadline for collecting the excise tax, and more. “I am sharing this information with you because I wanted you all to know the work the Governor’s Office is doing to support our collective effort,” Elliott concluded. “Creating a sustainable, safe, equitable and legal market for cannabis in our state is no small feat – it is a work of love, and it requires all of us to work together to help make this a reality.”
The Mind Foundation, which promotes libertarian values, recently Analyze it Possible consequences of amending the current cannabis tax. Ultimately, the organization recommended abolishing or suspending the existing farm tax, reducing retail taxes, or pursuing other ways to attract the interest of local governments. Tax costs are an important component of retail pricing, and this analysis shows that lowering taxes can make legal products more price-competitive with illegal products and attract more consumers to the regulated market. This overall market growth will quickly replace lost revenue from lower tax rates.” Reason Foundation Concluded.
Newsom initially revealed his budget proposal for the 2022-2023 fiscal year in JanuaryHe indicated that he is trying to bring about positive changes. “My goal is to consider tax policy to stabilize markets; at the same time, my goal is also to urge these municipalities to wake up to opportunities to get rid of the illegal market and the illegal market and provide support and the regulatory framework for the legal market,” Newsom said
In June 2021, Newsom proposed a file $100 million package “They will be offered as grants to cities and counties to help cannabis companies transition from temporary licenses to regular licenses.” Seventeen cities and counties were selected to receive this scholarship.
Meanwhile, in late April, Assembly Bill 2691 To allow small cannabis business owners to take their products directly to consumers at cannabis grower markets and other special events. According to association member Jim Wood, who introduced the measure, this will help small cannabis companies overcome the various challenges of high taxes and competition with larger companies, and will help increase visibility among local consumers.