California Gov. Gavin Newsom’s new budget priorities include a proposal to eliminate the state’s cannabis cultivation tax, offering licensed marijuana growers relief from high costs that insiders say are threatening the viability of the regulated pot industry. Newsom unveiled his budget for the 2022-2023 fiscal year on Friday, showing a record surplus of nearly $100 billion for the state’s coffers.
According to the proposed budget, Newsom will ask the state legislature to eliminate the cultivation tax that cannabis growers are required to pay, usually before their crop has even been sold. Under the current tax structure, cultivators are assessed a tax of $10.08 for every ounce of dried cannabis flower they produce.
Marijuana bud with money fanned out.
Gov. Gavin Newsom of California has proposed eliminating the state’s cannabis cultivation tax, a … [+] getty
Newsom’s proposal would amend the recreational marijuana legalization ballot measure approved by California voters in 2016, which means eliminating the cultivation tax must be approved by a two-thirds majority of the state legislature. The governor’s office has been working with lawmakers to help garner support for the change.
“We’ve been working very closely with legislative leaders, and we’ve made tremendous progress,” Newsom said at a Friday briefing, as quoted by Marijuana Moment. “We haven’t finalized any of that, so I want to be careful not to disrupt that progress.”