The legal cannabis market in California is in danger of being extinguished by high taxes and overregulation, industry leaders are telling Gov. Gavin Newsom.
California’s leading companies sent a formal letter to the governor this week begging for changes in laws they say leave them unable to compete with the illegal market.
“Seventy-five percent of cannabis in California is consumed in the illicit market and is untested and unsafe,” the letter reads.
The authors of the letter want Newsom to lift the “cultivation tax” placed on growers, a three-year reprieve from the excise tax and an expansion of retail shops statewide. Currently, only 33 percent of California cities have dispensaries, and it’s up to the individual cities to authorize any sales or production.
“We have been pushed to a breaking point,” the companies wrote.
Newsom appears to be supportive of the group’s efforts.
“It’s clear that the current tax construct is presenting unintended but serious challenges,” said Erin Mellon, a spokeswoman for the governor.
Interesting survey, we don’t all want cannabis stores and gangs on every corner.
Dems are destroying the cannabis industry bc of their insane greed and entitlement
[…] ‘We’re collapsing,’ warns cannabis industry WEHOville […]
The cannabis taxes are clearly too high–set by greedy/stupid politicians. The 4 simpletons (not Lauren Meister) on the West Hollywood City Council have the business sense of thugs, sniffing out profits from maximizing drug sales in the city.
Why is *everything* their fault? We’ve had legal cannabis in CA since January, 2017. Please explain further. Was there a vote on this, that I missed?
It not our City Council’s fault that pot cultivators in Northern California are facing unfair competition from illegal farms, many which are hidden in our National and State parks. West Hollywood only set up a local licensing system. Clearly money can be made in WeHo as dispensaries want to open here or on our borders. WeHo at least makes an effort to keep illegal marijuana out of legal distribution within our borders.
Thank you, Steve. I just cannot believe how many people want to blame the City Council for just about everything and anything.
West Hollywood wants to be half in and half out of potentially risky, treacherous situations all in the name of revenue. One can’t have it both ways. The city extends a Welcome Mat to issues that we have no plans in evidence for regulation and/or control then wonder why predictable things exponentially occur. Sophisticated critical thinkers we need and none are in sight.
While the “cultivation” tax could be suspended to help combat illegal sales, the excise tax is shared with municipalities who might no have otherwise approved retail sales without getting a cut of the revenue. That revenue is about $2 in West Hollywood. While “only” 33% of California cities may have authorized retail sales, those cities probably represent 80% of California’s population. I think most people would back reasonable changes to our laws to save California’s marijuana industry, the proposed “wish list” looks like another special interest giveaway.
Perhaps the over 40 new cannabis shops and eateries slated to open in West Hollywood in 2022 should be completely reconsidered. Economic Impact studied. Planning Commission re-evaluated, permit overviewed and re discussed by the city manager and city council. This may be a very bad step for our city.
No, not happening. Cannabis is the future now that it’s legal,one way or another. The demand is there.
What sensible pot smoker would ever go to these overpriced pot lounges? They just want to get high and left alone to chill.
Is this an example of poetic justice?