The bill would cut the excise tax on cannabis to 11% for three years
California lawmakers on Friday revived a proposal to temporarily cut taxes on marijuana to boost a legal market that one official said is “on the brink of collapse,” drawing encouragement from Gov. Gavin Newsom as he seeks to overhaul state pot regulators.
The bill would cut the state excise tax on marijuana sales from 15% to 11% for three years while eliminating a cultivation tax for that period. Similar legislation has been shelved in the last two years, with Newsom saying he felt it was too soon after legalization to make changes to the law.
But the governor signaled last week that he might be changing his mind, proposing in his new state spending plan a shakeup of the agencies that regulate cannabis sales as well as a streamlining of the method of collecting taxes, and saying he is open to considering other measures to boost a legal industry created when California voters approved Proposition 64 in 2016.
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