California’s legislation repealing the state’s upcoming cannabis excise taxes increased by a unanimous vote in another committee on May 5. This gives industry participants hope that their businesses will not be threatened.
Assembly Revenue and Taxation Committee voted to advance the bill with a 6-0 vote. Assembly Bill 564Under trigger language, Gov. Gavin Newsom Orchestration Three years ago, a trailer budget bill was billed. These four percentages represent a gain of 26.7%.
A.B. Rep. Matt Haney (D-San Francisco) sponsored A.B. You are commanded The Business and Professions Committee voted 15-0 on the 22nd of April, meaning that over a quarter (25%) of members in this chamber have united to support the bill. It now moves onto the Appropriations Committee.
Haney said to members of the Revenue and Taxation Committee that “this is a single-industry tax increase.” It was implemented a few year ago and in the last few years we have seen an industry who has faced incredible challenges.
According to ERA Economics’ report, an estimated 11,4 million pounds of cannabis unregulated is produced by unlicensed cultivators each year, with 2.4 millions pounds being consumed in California, and nine million pounds leaving the state. Reportage This report was commissioned by California’s Department of Cannabis Control. This unlicensed cannabis market accounts for approximately 63% of the Californian consumption and 89% production.
California loses out on an annual revenue of more than one billion dollars. Excise Sales tax and local sales taxes are generated based upon what is consumed within the state.
In 2024 the CDTFA received $600,000. This was less than the benchmark of $670 million set in law in 2022 to avoid a tax increase. Nevertheless, industry players and advocates are concerned that increasing taxes will lead to less licensed operators.
Haney noted that more and smaller cannabis businesses were succumbing under the weight of excessive taxes.
A.B. In the absence of A.B. On May 1, the Department is required to comply with The 2022 Law Newsom has signed legislation to increase excise taxes on retail sales of cannabis.
Amy Jenkins (CaCOA) said in testimony this week that there is a continuing instability within the licensed cannabis sector. CaCOA is a group of approximately 300 licensed cannabis operators in the entire supply chain.
“Jenkins stated that the country is “in a state of crisis” and to suggest otherwise is to misrepresent the truth. Whitney Economics is one of the most respected cannabis market analysts in the country. It has cut its 5-year projections. U.S. retail cannabis forecast 21% of the total. Why? Why?
Kristin Heidelbach also spoke in favor of A.B. 564. More than 5,000 cannabis workers are represented by the UFCW in California.
She said, “We’ve been yelling that the British were coming for some time now. But we have an industry of cannabis that competes with a hemp-growing industry unchecked that doesn’t pay tax.” We have a shady underground business that is competing with the British and does not pay fines or fees to help enforce. Now we are facing a potential tax increase. More people will lose their jobs and businesses as a result. This isn’t an increase in tax. This is just a tax freeze. It’s just another battle.”
According to Vangst, the industry’s employment agency, California lost 12,600 marijuana jobs in 2023.
California cannabis’ excise tax revenue, which has generated more than $3 billion since adult use sales began in 2018, is largely used to fund its Tier 3 beneficiaries, such as child-care programs, youth programs, conservation programs and law enforcement agencies.
Alex Loomer spoke against the bill in support of Resources Legacy Fund. This nonprofit organization is focused on utilizing public funds for climate resilience and conservation. The group helped to draft Proposition 64’s regulatory and environmental sections. Voters approved it in November 2016, legalizing adult-use marijuana.
Today, she told the audience that they had to make a choice: either increase profits in the cannabis industry or protect children and environment.
Loomer also mentioned other findings from the DCC-commissioned ERA Report released in March. These included that California’s licensed marijuana production has increased by 70% between 2020 and 2024, as well as the fact that the number units sold in licensed dispensaries have increased while prices are continuing to decline.
She neglected to mention that 27% of U.S. cannabis operators reported profitability in 2024—compared to 65% of all small businesses in the U.S. that are profitable—according to Whitney Economics’ 2024 U.S. Cannabis Business Conditions The Survey.
Whitney Economics estimates that the U.S. Cannabis industry will be cash-strapped by 2024. This includes an estimated $4.2 Billion in late payments.
The operators are also subject to heavy penalties for not paying their taxes on time, with California imposing a fine of up to 50% for any late or unpaid payments.
Jenkins stated, “Let’s be sure to understand what voters meant.” “Prop. Sixty-four times out of sixty-four, the tax structure must ensure that the legal and illicit markets are competitive. We are witnessing the exact opposite.
California’s legislation repealing the impending cannabis excise taxes was unanimously approved by a committee on May 5. This gives industry players hope that their businesses will not be threatened.
Assembly Revenue and Taxation Committee voted to advance the bill with a 6-0 vote. Assembly Bill 564Under trigger language, Gov. Gavin Newsom The orchestration of the word Three years ago, a trailer budget bill was billed. These four percentages represent a gain of 26.7%.
A.B. Rep. Matt Haney (D-San Francisco) sponsored A.B. You are commanded The Business and Professions Committee voted 15-0 on the 22nd of April, meaning that over a quarter (25%) of members in this chamber have united to support the bill. It now moves onto the Appropriations Committee.
Haney said to members of the Revenue and Taxation Committee that “this is a single-industry tax increase.” The tax was originally implemented several years ago. Over the years, the industry has had to overcome many challenges in order to remain viable, especially as the illicit, illegal market grows.
According to ERA Economics, cannabis growers without licenses produce 11.4 million lbs of cannabis unregulated annually. Of this, 2.4 million lbs are consumed within California, and the remaining 9 million pound leave. Reportage This report was commissioned by California’s Department of Cannabis Control. This unlicensed cannabis market accounts for approximately 63% of the Californian consumption and 89% production.
California loses out on an annual revenue of more than one billion dollars. Excise Sales tax and local sales taxes are generated based upon what is consumed within the state.
In 2024 the CDTFA received $600,000. This was less than the benchmark of $670 million set in law in 2022 to avoid a tax increase. Many industry advocates and participants fear that higher taxes would only result in fewer operators and lower revenue.
Haney noted that more and smaller cannabis businesses were succumbing under the weight of excessive taxes.
A.B. In the absence of A.B. On May 1, the Department is required to comply with The 2022 Law Newsom signed a bill to raise the tax on retail cannabis sales.
Amy Jenkins (CaCOA) said in testimony this week that there is a continuing instability within the licensed cannabis sector. CaCOA is a group of approximately 300 licensed cannabis operators in the entire supply chain.
“Jenkins stated that the country is “in a state of crisis” and to suggest otherwise is to misrepresent the truth. Whitney Economics is one of the most respected cannabis analysts in the country. It has cut its forecasts for five years. U.S. retail cannabis forecast 21% of the total. Why? Why?
Kristin Heidelbach also spoke in favor of A.B. 564. More than 5,000 cannabis workers are represented by the UFCW in California.
“We’ve been screaming for years that the British were coming, but now we have a cannabis-growing industry in competition with an unchecked industrial hemp that pays no tax,” said she. We have a shady underground business that is competing with the British and does not pay fines or fees to help enforce. We now have the possibility of a tax increase. This means more businesses will close and jobs lost. It isn’t a reduction in taxes. This is just a tax freeze. It’s just another battle.”
According to Vangst, the industry’s employment agency, California lost 12,600 marijuana jobs in 2023.
California’s cannabis excise taxes, which generated over $3.7 billion in revenue since the adult-use sale launched in 2018 largely funds Tier 3 recipients such as child care, youth groups and conservation programs.
Alex Loomer spoke out against the bill for Resources Legacy Fund. This nonprofit organization focuses its efforts on conserving and resiliency to climate change. This organization was involved in the drafting of Proposition 64’s environmental regulations and funding sections, approved by voters on November 16, 2016, to legalize cannabis for adult use.
Today, she told the audience that they had to make a choice: either increase profits for the cannabis industry or protect children and environment.
Loomer also mentioned other findings from the DCC-commissioned ERA Report released in March. These included that California’s licensed marijuana production has grown by 70% between 2020 and 2024, as well as the fact that the number units sold in licensed dispensaries have increased while prices are continuing to fall.
She neglected to mention that 27% of U.S. cannabis operators reported profitability in 2024—compared to 65% of all small businesses in the U.S. that are profitable—according to Whitney Economics’ 2024 U.S. Cannabis Business Conditions The Survey.
Whitney Economics estimates that the U.S. Cannabis industry will be cash-strapped by 2024. This includes an estimated $4.2 Billion in late payments.
The operators are also subject to heavy penalties for not paying their taxes on time, with California imposing a fine of up to 50% for any late or unpaid payments.
Jenkins stated, “Let’s be sure to understand what voters meant.” “Prop. Sixty-four times out of sixty-four, the tax structure must ensure that the legal and illicit markets are competitive. We are witnessing the exact opposite.”
Cannabis Law Resources in Poland
Discover essential legal information about the cultivation of cannabis, its sale, and regulations governing medical products in Poland. These guides will help you understand the legal requirements, such as certifications, permits, and compliance.
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Polish News Registration and Interests of Cannabis Businesses
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Permissions for Cannabis Sales in Poland
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Authorization for Importing or Manufacturing Medical Products
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Permission for Manufacturing or Importing Medical Products
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Certificate of Good Manufacturing Practices (GMP)
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Registration of Medical Products in Poland