As 2019 closed out, the State did the opposite of what the cannabis industry requested: California announced it would raise pot taxes.
Also in December, "How High," a report from the Legislative Analyst's Office, presented "as a least worse option" that we switch to a taxation formula based on THC levels.
This "How High" departure would leave behind the current weight-based system, which the report calls the weakest option.
- Harm reduction is an element of motivation behind the proposed restructuring. “The negative effects of cannabis use seem to be particularly high for high-potency products, high-frequency use, and youth use,” analyst Gabriel Petek writes.
- Unsurprisingly, the industry isn't super up for shifting tax modes. Zachary Pitts California Cannabis Delivery Alliance president said he was “stunned” that California would “think [this] is an acceptable solution for anything.”
- The company formerly known as Origin House, CannaRoyalty Corp., is part of Cresco Labs now that the merger has closed. New year, same consolidation.
New Cannabis Ventures
- Trinity County legend Bailous Eugene Smith was an old-school rabble rouser, a Vietnam vet and pot pioneer who joined a bunch of gold prospectors deep in the Trinity Alps, lived off the land, and grew weed. This week he died at 72.