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A tax hike on marijuana products in California will take effect<\/a> next week after lawmakers failed to include provisions to delay its implementation in key budget legislation on Wednesday.<\/p>\n State officials announced last month that the cannabis excise tax rate would increase from 15 percent to 19 percent on July 1, and advocates were holding out hope that the budget legislation would contain language similar to a standalone proposal from Assemblymember Matt Haney (D) to delay the change for five years.<\/p>\n That didn\u2019t happen, however. And that\u2019s despite Gov. Gavin Newsom\u2019s (D) support for including the tax freeze in the budget trailer bill, MJBizDaily first reported<\/a>. Assembly Speaker Robert Rivas (D) also backed the delay, but Senate President Pro Tempore Mike McGuire (D) reportedly blocked it from the budget legislation.<\/p>\n In a hearing before the Senate Budget and Fiscal Review Committee, Sen. Christopher Cabaldon (D) said he wished lawmakers \u201chad reached an agreement on the cannabis tax increase.\u201d<\/p>\n \u201cI\u2019m very concerned that this industry\u2014that we\u2019re going to see less revenue as a result of the increase than we would have without it, as well as severely hampering\u00a0 the legal industry and significantly advantaging the illicit and illegal activities around our state,\u201d he said<\/a>. \u201cSo I hope we remain committed to solving that issue. I know the tax increase is scheduled to take effect next week, but that remains a problem.\u201d<\/p>\n Under Haney\u2019s still pending standalone bill, which advanced through the Assembly earlier this month<\/a>, the delayed implementation wouldn\u2019t take effect until the beginning of 2026. Advocates wanted to see it included in the budget legislation because it would\u2019ve taken effect upon enactment.<\/p>\n The standalone bill would make it so the California Department of Tax and Fee Administration (CDTFA), working with the Department of Finance, would be required to \u201cadjust the cannabis excise tax rate upon purchasers of cannabis or cannabis products\u201d based on the \u201cadditional percentage of the gross receipts of any retail sale by a cannabis retailer that the department estimates will generate an amount of revenue equivalent to the amount that would have been collected in the previous fiscal year,\u201d the text says.<\/p>\n The department would need to \u201cestimate the amount of revenue that would have been collected in the previous fiscal year pursuant to the weight-based cultivation tax\u201d and \u201cestimate this amount by projecting the revenue from weight-based cultivation taxes that would have been collected in the previous calendar year based on information available to the department.\u201d<\/p>\n \u201cThe specific goal of the cannabis excise tax rate reduction is to provide immediate tax relief to the cannabis industry,\u201d the measure states. \u201cThe efficacy of this goal may be measured by the Legislature by the amount of gain or loss in cannabis excise tax revenues resulting from the cannabis excise tax rate reduction allowed by this act.\u201d<\/p>\n It also\u00a0mandates\u00a0that CDTFA, on or before December 1, 2026 and each subsequent year the California \u201csubmit a report to the Legislature\u2026detailing the amount of gain or loss in cannabis excise tax revenues resulting from the cannabis excise tax rate reduction allowed by this act.\u201d<\/p>\n \u2014 Meanwhile, California officials are inviting research proposals for a second round of grants under a program meant to better educate the public on the state\u2019s marijuana law<\/a> and help policymakers make informed decisions on the issue.<\/p>\n Last month, the Governor\u2019s Office of Business and Economic Development (GO-Biz) announced the recipients of over $52 million in community reinvestment grants<\/a>\u00a0to nonprofits and local health departments, also funded by marijuana tax revenue.<\/p>\n That marked the\u00a0seventh round of cannabis-funded California Community Reinvestment Grants (CalCRG)<\/a>\u00a0under the state program.<\/p>\n Legalization in California has created a number of new grant programs aimed at addressing the consequences of marijuana prohibition and attempting to nurture a strong, well-regulated legal industry.<\/p>\n California\u2019s Supreme Court separately delivered a victory for the state\u2019s marijuana program<\/a>\u00a0last month, rescinding a lower court ruling in a case that suggested federal prohibition could be used locally to undermine the cannabis market.<\/p>\n The state Supreme Court ruling also came just weeks after California officials unveiled a\u00a0report on the current status and future of the state\u2019s marijuana market<\/a>\u2014with independent analysts hired by regulators concluding that the federal prohibition on cannabis that prevents interstate commerce is meaningfully bolstering the illicit market.<\/p>\n The governor did sign a bill in 2022 that would have empowered him to enter into interstate cannabis commerce agreements<\/a>\u00a0with other legal states, but that power was incumbent upon federal guidance or an assessment from the state attorney general that sanctioned such activity.<\/p>\n Meanwhile, a California Senate committee recently declined to advance a bipartisan bill that would have\u00a0created a psilocybin pilot program for military veterans and former first responders<\/a>.<\/p>\n New Michigan Bill Would Legalize Psilocybin For People With PTSD<\/a><\/p>\n<\/blockquote>\n\n The post California Marijuana Tax Hike Will Take Effect Next Week After Lawmakers Omit Provisions To Delay It From Budget Bill<\/a> appeared first on Marijuana Moment<\/a>.<\/p>\n
A tax hike on marijuana products in California will take effect next week after lawmakers failed to include provisions to delay its implementation in key budget legislation on Wednesday. State officials announced last month that the cannabis excise tax rate would increase from 15 percent to 19 percent on JulyContinue Reading<\/a><\/span><\/p>\n","protected":false},"author":458,"featured_media":81939,"comment_status":"false","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[18,81],"tags":[],"_links":{"self":[{"href":"https:\/\/cannabiscultivatornews.com\/home\/index.php\/wp-json\/wp\/v2\/posts\/81938"}],"collection":[{"href":"https:\/\/cannabiscultivatornews.com\/home\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/cannabiscultivatornews.com\/home\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/cannabiscultivatornews.com\/home\/index.php\/wp-json\/wp\/v2\/users\/458"}],"replies":[{"embeddable":true,"href":"https:\/\/cannabiscultivatornews.com\/home\/index.php\/wp-json\/wp\/v2\/comments?post=81938"}],"version-history":[{"count":1,"href":"https:\/\/cannabiscultivatornews.com\/home\/index.php\/wp-json\/wp\/v2\/posts\/81938\/revisions"}],"predecessor-version":[{"id":81940,"href":"https:\/\/cannabiscultivatornews.com\/home\/index.php\/wp-json\/wp\/v2\/posts\/81938\/revisions\/81940"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/cannabiscultivatornews.com\/home\/index.php\/wp-json\/wp\/v2\/media\/81939"}],"wp:attachment":[{"href":"https:\/\/cannabiscultivatornews.com\/home\/index.php\/wp-json\/wp\/v2\/media?parent=81938"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/cannabiscultivatornews.com\/home\/index.php\/wp-json\/wp\/v2\/categories?post=81938"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/cannabiscultivatornews.com\/home\/index.php\/wp-json\/wp\/v2\/tags?post=81938"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
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\nRead More: California Marijuana Tax Hike Will Take Effect Next Week After Lawmakers Omit Provisions To Delay It From Budget Bill<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"