California pot companies warn of impending industry collapse.

[OneCrazyDiamond]

https://apnews.com/article/business-california-tax-reform-gavin-newsom-b5852a77c8b751e49286dbcdbf1536ad

LOS ANGELES (AP) — Leading California cannabis companies warned Gov. Gavin Newsom on Friday that the state’s legal industry was on the verge of collapse and needed immediate tax cuts and a rapid expansion of retail outlets to steady the shaky marketplace.

The letter signed by more than two dozen executives, industry officials and legalization advocates followed years of complaints that the heavily taxed and regulated industry was unable to compete with the widespread illegal economy, where consumer prices are far lower and sales are double or triple the legal business.

Four years after broad legal sales began, “our industry is collapsing,” said the letter, which also was sent to legislative leaders in Sacramento.

The industry leaders asked for an immediate lifting of the cultivation tax placed on growers, a three-year holiday from the excise tax and an expansion of retail shops throughout much of the state. It’s estimated that about two-thirds of California cities remain without dispensaries, since it’s up to local governments to authorize sales and production.

[PoliticAverse]

1. "three-quarters of California cities have banned pot shops."

From: https://www.northbaybusinessjournal.com/article/article/california-lawmakers-say-pot-excise-taxes-must-be-cut-to-help-an-industry/

California's legal market has not grown as expected, a problem the cannabis industry and some state officials have attributed to factors including high taxes, bureaucratic red tape and the fact that three-quarters of California cities have banned pot shops.

[shanti]

21. my city

did a proactive run on legalization by banning any dispensaries, etc. in advance. the delivery companies now dominate in the county.

[msongs]

2. druggies dont want over priced drugs so they go to the cartels. geeeeez anybody

with one brain cell coulda seen this coming lol

[Mr.Bill]

15. The weed is not coming from cartels.

It mostly comes from domestic independent growers, or people growing it for themselves, which is legal up to six plants.

[MichMan]

18. Who knows where it comes from ?

It's a black market

[Mr.Bill]

19. Someone like me who has known

people on the production side for 50 years.

[MichMan]

3. Seems like one solution is to crack down hard on those growing and selling illegally

Evading taxes, not paying their workman's comp, FICA, and health insurance for their employees as well.

[Ferrets are Cool]

4. Yeah, cuz it should be a crime to grow a weed in your back yard.

[OneCrazyDiamond]

7. I think you missed the selling illegally.

In essence, its tax evasion to profit off your backyard stash.

[OneCrazyDiamond]

5. this

I don't use the stuff, but if one does, they should pay the taxes. Just like booze and tobacco.

[Throck]

6. Is growing for private consumption legal?

[3Hotdogs]

9. It is in N.J.

Also probably so, elsewhere.

[peacefreak2.0]

10. Not in Maine.

We can have up to three mature and twelve immature plants for personal use.

[SoCalNative]

11. Yes

up to 6 plants.

[mitch96]

12. The "war on drugs" tried that...... where did it go? nada YMMV nt

[MichMan]

13. It's a war on tax evasion, not drugs

Why should businesses following the laws and paying the prescribed taxes, be undercut by scammers and tax evaders ?

[Mr.Bill]

16. Yeah, like that worked real well for decades.

There is no legal requirement to provide health insurance for employees.

[pwb]

8. Cannabis is easy to grow. Today one plant

grown inside can give you many ounces. I don't think people need legal or illegal and that could be their problem.

[Mr.Bill]

14. The black market in California is so well established

that an over-taxed product can't compete with it. They let local entities tax it as much as they want to on top of the state tax and they all got greedy. I live in a northern county where a lot of it is grown. The stores that open don't last long. They can't attract enough customers to stay in business. If they taxed tomatoes $10 a pound, wouldn't you grow your own?

[ms liberty]

20. This. n/t

[keithbvadu2]

17. The sin tax just can't cover all the sin.

Cigarettes and alcohol have a much better lock on the market.