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Three months into a major marijuana tax hike in California, a new law putting a pause on the increase has officially taken effect<\/a>.<\/p>\n Gov. Gavin Newsom (D) signed the tax relief legislation from Assemblymember Matt Haney (D) late last month. Now, as of Wednesday, consumers will not be paying the increased excise tax\u2014at least until October 2028.<\/p>\n \u201cWe\u2019re rolling back this cannabis tax hike so the legal market can continue to grow, consumers can access safe products, and our local communities see the benefits,\u201d Newsom said at the time of the bill signing.<\/p>\n Haney said that \u201cCalifornia\u2019s cannabis economy can bring enormous benefits to our state, but only if our legal industry is given a fair chance to compete against the untaxed and unregulated illegal market.\u201d<\/p>\n \u201cAB 564 helps level the playing field,\u201d he said. \u201cIt protects California jobs, keeps small businesses open, and ensures that our legal cannabis market can grow and thrive the way voters intended.\u201d<\/p>\n State officials announced in June that the cannabis excise tax rate would increase from 15 percent to 19 percent on July 1, prompting concern from industry stakeholders and consumer advocates.<\/p>\n Newsom previously supported including a tax freeze in a budget trailer bill, but that didn\u2019t come to fruition. Assembly Speaker Robert Rivas (D) also backed the delay, but Senate President Pro Tempore Mike McGuire (D) reportedly blocked it<\/a> from the budget legislation.<\/p>\n Before being amended in committee, the newly enacted legislation\u2019s pause of the cannabis tax increase would have been in effect until June 30, 2030. After that, on a biennial basis, regulators would adjust the tax rate \u201cby a percentage that will generate an amount of revenue that would have been collected pursuant to the cultivation tax imposed prior to its discontinuation, as specified, not to exceed 19 percent,\u201d according to a summary.<\/p>\n The Senate Appropriations Committee, however, moved to shorten the period that the reduction will be in effect, to October 2028.<\/p>\n The new law will make it so the California Department of Tax and Fee Administration (CDTFA), working with the Department of Finance, will 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<\/a>\u00a0says.<\/p>\n The department will 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, a leading veterans group is calling on the governor to sign a bill that would streamline research on marijuana and psychedelics<\/a>.<\/p>\n The legislation from Assemblymember Christopher Ward (D) would empower the Research Advisory Panel of California (RAPC) to expedite reviews of research proposals for cannabis on marijuana and psychedelics, through January 2028.<\/p>\n California officials are also inviting research proposals for a second round of grants under a program meant to\u00a0better educate the public on the state\u2019s marijuana law<\/a>\u00a0and help policymakers make informed decisions on the issue.<\/p>\n In June, the Governor\u2019s Office of Business and Economic Development (GO-Biz)\u00a0announced 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>\u00a0in June, 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\u00a0empowered 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 The post California Marijuana Tax Cut Officially Takes Effect, With Planned Increase Delayed Through At Least 2028<\/a> appeared first on Marijuana Moment<\/a>.<\/p>\n
Three months into a major marijuana tax hike in California, a new law putting a pause on the increase has officially taken effect. Gov. Gavin Newsom (D) signed the tax relief legislation from Assemblymember Matt Haney (D) late last month. Now, as of Wednesday, consumers will not be paying theContinue Reading<\/a><\/span><\/p>\n","protected":false},"author":458,"featured_media":83586,"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\/83585"}],"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=83585"}],"version-history":[{"count":1,"href":"https:\/\/cannabiscultivatornews.com\/home\/index.php\/wp-json\/wp\/v2\/posts\/83585\/revisions"}],"predecessor-version":[{"id":83587,"href":"https:\/\/cannabiscultivatornews.com\/home\/index.php\/wp-json\/wp\/v2\/posts\/83585\/revisions\/83587"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/cannabiscultivatornews.com\/home\/index.php\/wp-json\/wp\/v2\/media\/83586"}],"wp:attachment":[{"href":"https:\/\/cannabiscultivatornews.com\/home\/index.php\/wp-json\/wp\/v2\/media?parent=83585"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/cannabiscultivatornews.com\/home\/index.php\/wp-json\/wp\/v2\/categories?post=83585"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/cannabiscultivatornews.com\/home\/index.php\/wp-json\/wp\/v2\/tags?post=83585"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
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\nRead More: California Marijuana Tax Cut Officially Takes Effect, With Planned Increase Delayed Through At Least 2028<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"