California Considering Lowering Marijuana Taxes to Attract Customers

One of the biggest concerns people had with California legalizing marijuana were the exorbitant tax rates. But it appears the state is finally realizing that as well.

California lawmakers have proposed a bill that would cut the tax rate on marijuana purchases in the state. Proponents of the change note that tax rates can be as high as 50 percent in some places on cannabis sales, and that these added costs are preventing people from joining the legal market and staying in the black market.

California currently imposes a 15 percent tax on marijuana sales, and local governments are allowed to add on their own rates as well. The state also imposes a separate tax on cannabis cultivators based on the amount they produce. All of these taxes add up to greatly increase the price of marijuana, which is turning customers away. 

The new proposal would cut the 15 percent tax down to 11 and suspend all taxes on cultivators for three years, until the industry is in a more stable condition. 

Of course, this issue was brought up by marijuana advocates prior to legalization with many pointing out that these high tax rates would lead some to stay in the black market, while others would possibly continue purchasing only medical marijuana to avoid the higher fees.

So don't let those politicians say no one warned them.

(h/t Cannabist)


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