California Analysts Propose Taxing Cannabis Based on Potency

California Analysts Propose Taxing Cannabis Based on Potency

If you find yourself in California in search of a particularly strong strain of bud, it may soon cost you.  That’s because analysts in the state this week recommended replacing the existing tax structure for marijuana products, and replacing it with one tied to the potency of the cannabis. The Stronger The Weed, The Higher The Price Tag  The proposal, which was offered up on Tuesday by the California Legislative Analyst’s Office, comes amid criticism from lawmakers and advocates over the established tax policy for legal weed, which the Associated Press reported can be as high as 50 percent in certain markets.  The Legislative Analyst’s Office said it analyzed four different types of taxes, ultimately finding that weight-based taxation performed “similarly to or worse than the potency‑based tax” based on three primary criteria that informed the study: effectiveness at reducing harmful use, revenue stability and ease of administration and compliance. “We view reducing harmful use as the most compelling reason to levy an excise tax,” the analysts said in their recommendation. “Accordingly, we recommend that the Legislature replace the existing retail excise tax and cultivation tax with a potency‑based or tiered ad valorem tax, as these taxes could reduce harmful…

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Source : High Times
Link to original : California Analysts Propose Taxing Cannabis Based on Potency
reposted by Cannabis News World

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