Californian marijuana businesses face mounting financial pressures and regulations as their second-largest municipality increases its taxes and the governor imposes an intoxicating products ban.
San Diego City Council approved overwhelmingly earlier this week to increase cannabis retailer taxes from 8% up to 10% starting May 1.
This move is designed to increase tax revenues by $4m and reduce the City’s budget deficit of $258m.
California already taxes its residents at a hefty 22.75%. San Diego’s retailers will now be charged a tax of 32.75 %, which means almost a third their revenue is going to the state or city.
The state’s tax will also increase 4%, bringing the total to 36.7% in July.
Opponents claim that this will add pressure to an industry already in trouble, and encourage consumers to switch to the illicit cannabis market.
A study conducted by the Department of Cannabis Control showed earlier this month that 60% of the total cannabis consumption is still accounted for on the illegal market.
California has extended its emergency ban against hemp-derived THC. This ban, originally set to end in September of 2024, will be extended for at least 90 more days. A final extension is possible.
Last year, Governor Gavin Newsom imposed the ban after legislators failed to adopt regulations for hemp-infused products.
Californian marijuana businesses face mounting financial pressures and regulations as their second-largest municipality increases its taxes and the governor extends an intoxicating products ban.
San Diego City Council has voted to raise taxes for cannabis retailers by a majority of 8% from now until May 1.
The move is designed to increase tax revenue by $4m to help reduce the $258m deficit of the city.
California already has a heavy statewide tax of 22.75 percent, but now San Diego will be hit with an effective rate of 32.75%. This means that almost one third of the income of retailers in San Diego goes to city and state.
This will increase by 4% in July to 36,75%, as a result of a new state tax.
Opponents claim that this will add pressure to an industry already in trouble, and encourage consumers to switch to the illicit cannabis market.
This month, the Department of Cannabis Control revealed that illicit sales still account for 60% of all consumption within the state.
California has extended its emergency ban against hemp-derived THC. The ban, originally set to expire in September 2024 was now extended for 90 more days with the option of an additional extension.
Last year, Governor Gavin Newsom imposed the ban after legislators failed to adopt regulations on intoxicating hemp-based products.
Cannabis Law Resources in Poland
Browse essential legal pages on cannabis sales and cultivation 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