“One of California’s many oppressive taxes on the cannabis industry has been laid to rest. Gov. Gavin Newsom has signed into law A.B. 195, which eliminates the state’s cultivation tax.
California’s cultivation tax, unique among the states that have legalized marijuana sales, forced growers to pay the state for each ounce of cannabis grown. This tax was separate from the state’s 15 percent excise tax and state and local sales taxes.
Because the cultivation tax rate was automatically indexed to inflation, it had actually been increasing thanks to the state of the economy. Anybody attempting to legally grow marijuana shouldered a heavy tax burden, which then flowed downstream to consumers, many of whom realized it was cheaper to continue purchasing marijuana on the black market. The end result: two-thirds of marijuana purchases in the Golden State take place through unlicensed vendors. Because it’s so expensive to grow legally, illegal grow operations abound within the state, leading to more police raids, arrests, and prosecutions, not to mention corrupt practices among local governments who have the power to pick and choose which businesses can open up shop legally.”
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“A.B. 195 also bends the knee to the state’s labor unions by reducing the threshold from 20 to 10 employees to require that aspiring licensees enter into a labor peace agreement with a qualifying labor organization. A labor peace agreement is a deal between a business and a labor union that the business will not oppose a unionization effort and the union will not encourage strikes or work stoppages. Making it a mandatory requirement in order to get a license essentially gives labor unions a type of veto power over who can and can’t operate a marijuana business. These agreements also, by their nature, require both sides to waive certain rights under the federal National Labor Relations Act.”
“When Californians voted to legalize recreational marijuana cultivation and sales back in 2016, the industry ended up saddled with state and local taxes that make it inordinately costly to attempt to sell or buy cannabis legally. As a result, the black market for marijuana still dominates sales in a state where it’s legal to buy it. Industry analysts estimate about $8 billion in black market marijuana sales annually in California—double the amount of marijuana purchased through licensed dispensaries.
The cultivation tax has been consistently eyed by industry analysts as a problem. This particular tax is unique among agricultural products in California, and due to the legislation passed in 2017 to establish tax authorities, it’s regularly adjusted for inflation. As a result, cultivation tax rates actually increased at the start of 2022 despite this big black market problem.
The high cost of attempting to cultivate marijuana has both given cannabis farmers second thoughts and has fostered a whole new drug war as state and local law enforcement officers raid illegal grow operations out in the rural and uninhabited parts of the state. Legislators even passed a new law adding more potential criminal penalties for those arrested for “aiding and abetting” any unlicensed dealers.”
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“It’s good news that Newsom is proposing eliminating the cultivation tax. He may be doing it in the hopes that the state will make more money, but California residents will also benefit from cheaper legal options. And if this makes it easier for people to grow cannabis legally, there will hopefully be fewer raids and enforcement operations in the future.”
I used to support legalizing all drugs. Then the opioid epidemic happened. German Lopez. 2017 9 12. Vox. https://www.vox.com/policy-and-politics/2017/4/20/15328384/opioid-epidemic-drug-legalization Dopesick Reinforces These Pernicious Misconceptions About Opioids, Addiction, and Pain Treatment Jacob Sullum. 2021 11 17. Reason. Two Courts Debunk Widely Accepted Opioid
Substance Use and Intimate Partner Violence: A Meta-Analytic Review 2016. Bryan M. Cafferky, Marcos Mendez, Jared R. Anderson, and Sandra M. Stith. Psychology of Violence. https://d1wqtxts1xzle7.cloudfront.net/59511278/Cafferky_201820190604-60960-qtu1qv-with-cover-page-v2.pdf?Expires=1643220750&Signature=JmFWS~QkCg86Icul9oqw-3Sz9j5uO~LzKP~HsVRSKQtNbZcNthwDy3nCgpG9yKXqPN2J2hs4tBs5pXVaD7cqLr9OXk9MDuEs37O1A0-c1-ZxX7EWjD16pZdSF3uKci5vDn4Geu2DhSduZ-Jqd~qkfmjK~NJybrESL7vvuiyszzVMhd~XjwQUQKw-PDdYiOY8qMD4oA~ecbZKCSVF~Rmxm5aFaYmnHAtWJb6Xc221n2SG5db3vXeECkCW3Ym09t7YAkY2b-Sg~sjKhHe3vGbUVcPkSj3aMKjsjBuA~mGK6xynPEQkGlmRJ0Htg22yJsh02QBtbqf51KqlGMKsk0L4uA__&Key-Pair-Id=APKAJLOHF5GGSLRBV4ZA ALCOHOL USE IN FAMILY AND DOMESTIC VIOLENCE Ashlee Curtis et al. https://onlinelibrary.wiley.com/doi/am-pdf/10.1111/dar.12925 The Role of Illicit
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“a majority of registered voters in all 50 states now favor making cannabis legal, according to state-level polling data from Civiqs. Support ranges from a low of 52 percent in North Dakota to a high of 81 percent in Vermont and Washington.”
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“the U.S. House passed legislation that would decriminalize marijuana at the federal level.
Not everyone is on board with those policy changes, though. Over 200 House Republicans voted against the legislation, while only three voted for it. (By comparison, over 200 House Democrats voted for the legislation, while only two voted against it.) That partisan opposition means the bill will almost certainly die in the U.S. Senate.”
“Jonathan Wall, a 26-year-old cannabis entrepreneur, has been confined at a federal supermax facility in Maryland for nearly 20 months, awaiting a May 2 trial that could send him to prison for life. Wall is accused of transporting more than 1,000 kilograms of marijuana from California, where cannabis is legal for recreational use, to Maryland, which allows only medical use.
Wall’s case illustrates the draconian penalties that can still be imposed on people for selling pot at a time when most states have legalized marijuana businesses. As far as the federal government is concerned, all of those businesses are criminal enterprises. But depending on how federal prosecutors choose to exercise their discretion, selling pot can make you millions of dollars as a state-licensed supplier, or it can send you to prison for decades.”