Home » Santa Clarita News » Politics » Marijuana » California Legislators Propose Cannabis Tax Cuts Limit Black Market Sales

California Legislators Propose Cannabis Tax Cuts Limit Black Market Sales

The budding legal marijuana market in California has come short on the projected tax revenue, prompting legislators to propose a plan to cut the cannabis tax to limit black market sales.

Assemblyman Tom Lackey, R-Palmdale, along with other lawmakers and California State Treasurer Fiona Ma, introduced legislation Monday to lower the cannabis tax rate and suspend the cultivation tax for three years.

“Right now the illicit market is dominating California’s cannabis industry,” Lackey said. “These are bad people who are making our communities unsafe. We need to give the good guys a chance to succeed; otherwise, our one chance at creating a regulated industry will be compromised.”

In November 2016, California voters passed Proposition 64, which legalized recreational cannabis in the state.

As part of Prop 64, taxes were imposed to generate revenue for law enforcement, research and other uses, according to the bill.

After an analysis, it was found that the tax revenue fell short of projections, according to officials.

State revenue from cannabis taxes came in about $100 million below what former Gov. Jerry Brown’s office projected last year.

California collected $84 million in revenue for the fiscal year 2017-18, and projects to receive $355 million in 2018-19 and $514 million in 2019-20.

The proposed bill calls for a tax rate cut from 15 percent to 11 percent for three years, and to suspend the cultivation tax of $148 per pound during that period, according to officials.

Lackey introduced a similar measure in 2018, but the bill failed to pass out of the Assembly’s appropriations committee.

Other states with legal adult use, like Washington and Oregon, have successfully taken steps to reduce their tax rates and encourage the adoption of the legal market, according to the bill’s author.

“We don’t tax start-up businesses (in other industries) when they start,” Ma said. “We need to do better. This is anywhere from a $6 billion to $20 billion industry here in California.”

The bill needs to pass the Assembly and State Senate, before being brought to the governor’s desk for final approval.


Sponsored Articles


Do you have a news tip? Call us at (661) 298-1220, or send an email to newstip@hometownstation.com. Don’t miss a thing. Get breaking KHTS Santa Clarita News Alerts delivered right to your inbox. Report a typo or error, email Corrections@hometownstation.com

KHTS FM 98.1 and AM 1220 is Santa Clarita’s only local radio station. KHTS mixes in a combination of news, traffic, sports, and features along with your favorite adult contemporary hits. Santa Clarita news and features are delivered throughout the day over our airwaves, on our website and through a variety of social media platforms. Our KHTS national award-winning daily news briefs are now read daily by 34,000+ residents. A vibrant member of the Santa Clarita community, the KHTS broadcast signal reaches all of the Santa Clarita Valley and parts of the high desert communities located in the Antelope Valley. The station streams its talk shows over the web, reaching a potentially worldwide audience. Follow @KHTSRadio on Facebook, Twitter, and Instagram.

KHTS FM 98.1 & AM 1220 - Santa Clarita News - Santa Clarita Radio

California Legislators Propose Cannabis Tax Cuts Limit Black Market Sales

2 comments

  1. Does not surprise me that former Governor Jerry Brown missed the mark on his prediction…seems like this is and was the norm while he was ruining…oops I meant running the state (both times) He missed the mark by billions on his stupid A$$ train too. I really wish good old Gavin would abort that train and reallocate the money for environmental issues and to address the homeless issues and Veterans.

  2. That is simply making funds once more. Payday
    loans.

Leave a Reply

Your email address will not be published. Required fields are marked *

*

This site uses Akismet to reduce spam. Learn how your comment data is processed.

About Devon Miller

Devon Miller was born and raised in Santa Clarita. He joined KHTS Radio as a digital marketing intern in September of 2017, and later moved to news as a staff writer in December. Miller attended College of the Canyons and served as the Associated Student Government President. Miller is now News Director for KHTS, covering breaking news and politics across the Santa Clarita Valley.