Marijuana Taxes Will Go Up Jan. 1

California marijuana consumers are bracing for increased cannabis taxes at a time when black market sales continue to eclipse the legal industry.

On Jan. 1, the markup rate for the retail marijuana excise tax will increase from 60% to 80%, Marijuana Businesses Daily reports. Cultivation taxes will also go up by 4.3% for flowers and leaves and 4.6% for fresh plant material.

The decision has drawn criticism from the industry and some lawmakers, with Assemblyman Rob Bonta (D-Oakland) calling it “short-sighted.”

“Widening the price disparity gap between illicit and regulated products will further drive consumers to the illicit market at a time when illicit products are demonstrably putting people’s lives at risk,” The California Cannabis Industry Association (CCIA) warned. The organization said it was “stunned and outraged.”

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