Last week, California Gov. Gavin Newsom made an announcement that was welcomed by the marijuana industry. During a news conference after revealing his 2022–2023 budget estimates, Newsom stated that he planned to revisit marijuana taxes so that the cannabis market could be stabilized.
During that news conference, Newsom also stated that he planned to make municipalities across the state wake up to the immense potential of allowing marijuana retail businesses to operate within their jurisdictions in order to squeeze out black market operators.
However, the governor didn’t provide any details regarding the approach that he would use to enact the needed tax reforms as well as how to get more retail outlets open. Some analysts think that Newsom will include a grant program in the state budget so that businesses in the cannabis space can receive the help they need to become formal and adhere to the existing marijuana laws in California. Industry watchers also say that it is likely that any changes to the cannabis tax regime will be made through the use of a standalone law presented to the legislature.
For such a tax bill to pass, support from two-thirds of the lawmakers in both legislative chambers is required, and this will not be an easy feat given that more than one tax reform bill is likely to be tabled this year. What is likely to be easier to implement is a grant program. Newsom’s administration has so far supported a number of grant initiatives, such as one to promote social equity in the cannabis industry and another to enable local governments to process more cannabis licenses.
Newsom’s announcement comes at a time when there is growing unease about the future of the state marijuana industry given the high taxes imposed, opposition from many municipalities and a thriving black market. Some activists have even gone so far as to predict that the sector could collapse in a year if urgent steps aren’t taken to reform the tax policy applicable to cannabis products. These activists say the biggest victims are likely to be small businesses, especially those owned or operated by minority groups, since these small businesses are already burdened by numerous disadvantages, such as limited capitalization.
Graham Farar, president of Glass House Group, remarked that Newsom had zeroed in on the two main things that the marijuana industry needed. These two things are lower taxes that would allow licensed operators to compete favorably with the black market, and more outlets in the retail segment so that more products made can be sold legally.
If these needed reforms are enacted, the entire sector, including companies such as American Cannabis Partners, will benefit from a regulatory landscape that is a tad more favorable to the growth of the industry.
NOTE TO INVESTORS: The latest news and updates relating to American Cannabis Partners are available in the company’s newsroom at https://cnw.fm/ACP
About CNW420
CNW420 spotlights the latest developments in the rapidly evolving cannabis industry through the release of two informative articles each business day. Our concise, informative content serves as a gateway for investors interested in the legalized cannabis sector and provides updates on how regulatory developments may impact financial markets. Articles are released each business day at 4:20 a.m. and 4:20 p.m. Eastern – our tribute to the time synonymous with cannabis culture. If marijuana and the burgeoning industry surrounding it are on your radar, CNW420 is for you! Check back daily to stay up-to-date on the latest milestones in the fast -changing world of cannabis.
To receive instant SMS alerts, text CANNABIS to 21000 (U.S. Mobile Phones Only)
For more information please visit https://www.CNW420.com
Please see full terms of use and disclaimers on the CannabisNewsWire website applicable to all content provided by CNW420, wherever published or re-published: http://CNW.fm/Disclaimer
Do you have questions or are you interested in working with CNW420? Ask our Editor
CannabisNewsWire420
Denver, Colorado
http://www.CNW420.com
303.498.7722 Office
Editor@CannabisNewsWire.com
CNW420 is part of the InvestorBrandNetwork.