California’s pot industry begs Newsom to prevent collapse
Two dozen cannabis industry officials sent a letter to Gov. Gavin Newsom and lawmakers Friday warning of the impending collapse of the legal pot market and calling for immediate tax reform.
“Our industry is collapsing,” the letter warns. “We need you to understand that we have been pushed to a breaking point.”
Excessive taxation has contributed to a black market where illicit sales far outnumber legal ones. 70% of all cannabis consumed in California remains untested and unregulated, the letter says.
The advocates want the elimination of the cultivation tax and the suspension of the excise tax. Somehow, they also want more localities to be compelled to allow commercial cannabis operations in their jurisdictions.
“The solution to these issues and the possibility of saving this industry lies in your hands,” the signatories told the governor.
The letter was signed by the California Cannabis Industry Association, the California chapter of the National Organization for the Reform of Marijuana Laws, the Los Angeles-based United Cannabis Business Association, Flow Kana Inc., Harborside Inc., and CannaCraft.
Read more at KCRA.