California lawmakers propose cut to recreational cannabis taxes

[Eugene]

Source: Reuters

BUSINESS NEWS MARCH 15, 2018 / 6:48 PM / UPDATED 14 HOURS AGO

California lawmakers propose cut to recreational cannabis taxes

Laila Kearney
2 MIN READ

NEW YORK (Reuters) - California lawmakers on Thursday launched a bipartisan bid to temporarily reduce taxes on the state’s emerging recreational cannabis industry in order to help legally run pot businesses compete financially with black market growers and sellers.

Legislation introduced by assemblymen Tom Lackey, a Republican from Palmdale, and Rob Bonta, an Oakland-based Democrat, comes 2-1/2 months after a law took effect legalizing adult marijuana use in the most populous U.S. state.

“California cannabis businesses are making significant investments as they embrace the regulated marketplace while, at the same time, being undercut by unregulated competitors,” Bonta said in a statement. The bill is aimed at “keeping customers at licensed stores and helping ensure the regulated market survives and thrives,” he said.

The marijuana market in California, which lays claim to the world’s sixth-largest economy, is valued by most experts at several billion dollars annually and is expected to generate at least $1 billion a year in tax revenue.

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Read more: https://www.reuters.com/article/us-usa-municipals-cannabis/california-lawmakers-propose-cut-to-recreational-cannabis-taxes-idUSKCN1GR3FS

[JayhawkSD]

1. Only in California.

One of the big arguments for legalizing marijuana was that we could benefit from the taxes collected on it. Now we want to cut the taxes on it so that legal sellers can compete with illegal sellers, who do not charge taxes, thereby eliminating the reason why we were convinced to legalize it in the first place.

And, put on your logic hat, the one that makes you think with the logical part of your brain, the part that is rational, and think about that statement. "We should cut taxes to allow legal sellers compete with illegal sellers."

Hell, let's drag the whole legal, regulated economy down to the level of the illegal, unregulated economy and everybody wins.

[askyagerz]

2. Yeah comparing the legal market to the black market

Is like comparing apples to oranges. The black market competes almost entirely out of state and legal companies compete in state.
If anything they should help black market growers adjust to growing legally. Also put laws into place to help protect small growers and keep corporate money out.

[CanSocDem]

3. My 'blackmarket' dealer is a friend.

Has been for more than 30 years. At my last visit, he gave me a $50.00 dollar discount on an 'ounce' in an attempt, he said, to compete with the looming legal trade.

He's a friend and I want to see him do well. And I think we as consumers, owe him our business for all of the decades he served our needs without legal protection.

Coincidentally, his city (and my former residence) has a national reputation for its irrational attitude towards cannabis; so despite the national impetus towards legalization, this city and the province are dragging their feet, mightily.

So, my friends' business may be around for a while yet.

More signs of the apocalypse:

My little old hometown (that I first intro'd to pot in 1967) has been designated as a possible sight for a retail cannabis store. I can't help thinking this is an elaborate sting to 'flush out' me and fellow users. Fifty plus years of smoking makes one cautious...

.

[samnsara]

4. here is Wash state i can get 84$ OZs and 52$ Ozs on sale....and good stuff too..

...we had a really high tax but the product s so cheap now that its basically free and seems like we just pay for the taxes.