California governor Gavin Newson submitted a state budget proposal to the state legislature on Friday, which will begin in July, proposing to end the tax of $161 per pound of marijuana dry flowers, AP reported. At the same time, in order to make up for the loss of income, the state will raise the marijuana retail consumption tax from 15% to 19% in three years. For years, California marijuana companies have believed that heavy state taxes and regulatory burdens are stifling small businesses and further strengthening the illegal market. Industry insiders called for the abolition of planting tax and the reduction of consumption tax at the same time. The governor's expected budget also requires the state to provide approximately $20 million in grants to encourage municipalities to improve marijuana retail licensing programs.
Source: mjbizdaily com/