Published
4 years agoon
LOS ANGELES — California is increasing business tax rates on legal marijuana, a move that stunned struggling companies that have been pleading with the state to do just the opposite.
The changes involve taxes paid by legal businesses, which ultimately get passed along to consumers at the retail counter.
Josh Drayton of the cannabis association predicted that an eighth-ounce purchase of marijuana buds, typically priced around $40 to $45, would be pushed up to $50 or more in the new year.
For consumers, “ultimately, they’ll feel that at the register,” Drayton said.
Related Story: Divided US House Committee Backs Pot Decriminalization
A major change involves what’s known as the mark-up rate, which is used when calculating taxes in certain business transactions, such as when a retailer purchases wholesale cannabis that will in turn be sold to consumers. The mark-up rate is being pushed up over 30 percent.California Lawmakers OK Potential Fines for High Gas Prices
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