California Plans to Strip one Marijuana Tax to Combat Black Market

California Plans to Strip one Marijuana Tax to Combat Black Market

Gavin Newsom, Governor of California, has released a budget proposal for May that would strip the Cultivation Tax from being collected during the cultivation of marijuana. This would lower the overall cost of purchase once it hits retail stores and incentivize buying in the legal market.

According to an analysis by Reason Foundation, stripping the cultivation tax would increase tax revenue by 123% by the year 2024 if enacted. This is due to a general lowering of prices enabling more demand.

After being proposed in the his initial budget, the proposal needs to be approved by 2/3 of the California Legislation before being enacted.

“Eliminating the cannabis cultivation tax would help growers, retailers, and consumers. Reducing the retail excise tax would further help the legal cannabis market. And state lawmakers should also look at revenue-sharing opportunities or other incentives that might encourage California’s local governments to stop banning the sale of legal cannabis products in their jurisdictions,” says Geoffrey Lawrence, a writer for Reason Foundation.

Read the original article at Marijuana Moment.

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