Friday, July 12, 2024

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California is slowing dropping its tax rate on marijuana

During the boom of newly legal marijuana, the excitement was so high that it seemed people would continually be lining up to get their daily dose of legal weed. With this came opportunity to make lots of money, and the tax rate on marijuana in the state of California has been absurdly high ever since. With the state excise tax, the state sales tax, and local tax, 35% or higher was not uncommon.

The rate was so high, that the illicit market continued to run rather smoothly, becoming the much cheaper option.

Now, it seems, local governments across the state are starting to get the message and are course correcting.

According to MJBizDaily, as of now there are 14 cities and counties that have reduced or entirely eliminated their local tax on marijuana. More are likely to follow.

It’s unfortunate that the local governments are the only ones bearing the brunt of cheaper marijuana, with the state tax sitting firmly at 15%. If that rate was cut in half, there would be a lot more breathing room for businesses.

Either way, this is a step in the right direction to fight the less safe illicit market, although the real question is if it’s too little too late.

Read the original story at MJBizDaily.

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