California governor vetoes state tax deduction bill for cannabis businesses
The State of California has been crying that tax revenues from the sale of legal marijuana has been way too low. Actually, it looks to me like the real marijuana plan is working very well. First you legalize marijuana, allow for massive marketing and confusion for law enforcement as to what pot is legal and which is illegal;. Then you make pot acceptable. At that point price becomes the decisive factor in where you buy the weed.
kcapo @ Green Leaf Farms in Salinas September 24, 2018 By Stephen Frank
Legal places have high taxes, high permit fees, cost for security and rent for brick and mortar. At the same time the illegal folks can undercut the cost of marijuana by 50% or more. Even potheads do not want to finance government. They buy the illegal stuff, get high and the legal folks are used to market the industry.
How high are the taxes? “The veto is likely to be met with dismay by California marijuana businesses, which already are struggling to make ends meet given the cost of complying with new state regulations and high local taxes. They also face a federal tax burden under 280E that typically results in MJ companies paying a federal tax rate of 70%-90%.
Only the cartels are helped! Was that the real goal of legalization?
California governor vetoes state tax deduction bill for cannabis businesses
Marijuana Business, 9/20/18
California Gov. Jerry Brown vetoed a bill that would have given a tax break to all licensed marijuana businesses, dealing a setback to MJ companies hoping to reduce their state tax bills.
The measure – Assembly Bill 1863, approved by the Legislature earlier this summer – would have allowed licensed cannabis companies to take tax deductions under the state Personal Income Tax Law. If Brown had signed the measure into law, it would have gone into effect for the 2018 tax year.
The bill came with an estimated price tag to the state of $13 million per $1 billion in retail cannabis sales, according to an analysis by the state Senate Appropriations Committee.
“Given the cost to the General Fund, this proposal is best evaluated as part of the budget process,” the governor wrote in his veto message Wednesday.
The veto is likely to be met with dismay by California marijuana businesses, which already are struggling to make ends meet given the cost of complying with new state regulations and high local taxes. They also face a federal tax burden under 280E that typically results in MJ companies paying a federal tax rate of 70%-90%.
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