Cost of cannabis rising? Tax hike set for January

REDDING, Calif. — A scheduled tax increase on California’s legal marijuana growers has those in the industry worried.

A busy morning at the Sundial Collective in Redding where cannabis goes for anywhere from $50 to $700 an ounce. Owner and CEO Lathen Martines says, right now, a state excise tax, sales tax, and a 5% City of Redding tax, add up to about 45 cents of every dollar spent here.

A cultivation tax increase to account for inflation is set for January 1. That will make taxes even higher and, Lathen says, could drive legal growers underground.

“Having a 45% tax on legal cannabis, it drives legal growers to go at it illegally or sell it illegally,” said Lathen. “The black market thrives when we tax cannabis too much.”

He says there’s a glut of cannabis in California, leading some cultivators to sell illegally on the street or out of state where it can fetch much higher prices.

At the collective, they’ve been paying about $1.5 million a year in taxes to the City of Redding.

“The city, actually, is using their tax revenue from cannabis for really good things. We could see exactly what they’re spending it on,” Lathen explained. “They’ve hired a few more police; they’ve done some enforcement of illicit cannabis grows and deliveries….They’ve used some for the general fund; they also use some for drug awareness for teens. But, they use it for really good stuff. I can see what they’re using it for.”

Lathen says the state has not been transparent about where the tax money goes.

  1. Cannabe Your Heart Marijuanas Weed Cannabis Valentine’s Day Svg

2. Cannabis Fashion Logo Svg

3. Cannabis Never Underestimate And Old Lady Who Smokes Weed Svg

4. Cannabis Park Svg

5. Cannabis Quote Blunt Cigarette Joint Weed Pot Plant Marijuana Smoking Svg

6. Cannabis Rolling Stoned Funny Marijuana Weed Svg

7. Cannabis Svg

8. Cheech And Chong Svg

9. Crown Weed Queen Blunt Joint Marijuana Svg

10. Dabbed And Confused Svg

REDDING, Calif. — A scheduled tax increase on California’s legal marijuana growers has those in the industry worried. A busy morning at the Sundial Collective in Redding where cannabis goes for anywhere from $50 to $700 an ounce. Owner and CEO Lathen Martines says, right now, a state excise tax, sales tax, and a 5%…

Leave a Reply

Your email address will not be published.