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California Boosts Pot Taxes, Shocking Unsteady Industry

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California boosts pot taxes, shocking unsteady industry

(Los Angeles Times) — California is increasing business tax rates on legal marijuana, a move that stunned struggling companies that have been pleading with the state to do just the opposite.

Hefty marijuana taxes that can approach 50% in some communities have been blamed for pushing shoppers into California’s illegal market, which is thriving. Industry analysts estimate that $3 is spent in the illegal market for every $1 in the legal one.

The California Cannabis Industry Assn. said in a statement that its members are “stunned and outraged.”

The group said the higher taxes that will take effect Jan. 1 will make it even worse for a legal industry struggling under heavy regulation and fees, local bans on pot sales and growing, and a booming underground marketplace.“Widening the price […]

Continue reading at www.latimes.com

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