The licensed cannabis industry is having a hard time competing with the black market, and because of that, some state officials are proposing a tax break for legal operators.
The state treasurer and four legislators from both sides of the aisle are proposing a bill, “AB 286, to cut the state excise tax on marijuana sales from 15% to 11% for three years, and suspend the cultivation tax of $148 per pound during that period.
Assemblyman Rob Bonta says it's not right those in the black market, who don't follow environmental or other regulations and don't pay taxes undercut the legal growers and sellers.
He says the tax cut will help keep customers at the licenses businesses and help ensure the regulated market survives and thrives.
Photo Credit: Getty Images