California cannabis industry sending SOS to state leaders
California’s legalization of cannabis for adult recreational use was expected to be massive. In 2016, industry investors claimed sales could top $6.5 billion by 2020. And as 2019 comes to a close, California is indeed home to the world’s largest cannabis market, totaling close to $12 billion in estimated sales. But here’s the rub: $8.7 billion of that is changing hands in the illicit market.
HIGHLIGHTS
- Members of California’s cannabis industry are sending an S.O.S. to the state capitol, saying they’re struggling to compete against black market operators who don’t have to meet stringent regulations or pay taxes and fees.
- California has too few licensed cannabis businesses, too much taxation and overly onerous regulation.
- The cannabis industry’s concerns hit a fever pitch late last week when the California Department of Tax and Fee Administration announced an increase in cultivation taxes and a higher mark-up rate
