There’s some good news for California’s $4.6 billion marijuana industry in Gov. Gavin Newsom’s updated budget proposal released Wednesday.
However, while some might applaud the proposals for tougher action against illicit operators and no increase in licensing fees, it’s not the tax relief demanded by the beleaguered sector.
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Industry operators across California are dreading July 1, when the state excise tax is scheduled to increase from 15% to 19% under a recent tweak in state law.
Many industry observers hoped Newsom would propose delaying the tax increase – or even cutting it entirely.
The revision released Wednesday does neither, however; it merely passes to state lawmakers the difficult task of cutting the excise tax in a budget-deficit year.
The tax crunch is
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