Local Governments Are Leading the Charge on Cannabis Tax Reform

In recent weeks, Governor Gavin Newsom and a number of lawmakers have expressed support for cannabis tax reform. Several bills have been introduced in the Legislature to ease the burden on cannabis businesses and blunt a behemoth black market. Many cities and counties are already heeding the warnings from industry, and they’re not waiting on the state. As California’s marijuana market struggles under the weight of high taxation, more localities are stepping in and easing the tax burden themselves.

Writing for Marijuana Business Daily, Jackie Bryant lays out over a dozen examples, including:

  • A vote to reduce the cultivation tax by 85% in Humboldt County
  • A vote to postpone the tax deadline and suspend late penalties in Lake County
  • A freeze on automatic tax increases for cultivators in Monterey County and a proposal to reduce cultivation taxes
  • A vote to postpone first-quarter taxes in Sonoma County
  • Reduced taxes for cannabis manufacturing and distribution in Bellflower
  • A reduction in Berkeley's cannabis tax rate
  • A plan to reduce cannabis taxes in Cloverdale
  • Reduced cultivation taxes in Desert Hot Springs
  • Reduced taxes for manufacturing, distribution and testing in Long Beach
  • A reduced tax on gross receipts in Oakland
  • A vote to reduce manufacturing and cultivation taxes in the City of San Diego
  • A second-year marijuana business tax suspension in San Francisco through 2023
  • A reduction in cultivation, manufacturing and distribution taxes in San Jose
  • Resolutions passed by at least 11 local governments calling for statewide cannabis tax reform

Read more about cannabis tax relief efforts at the local level here.


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