California cannabis taxes

California 2020 Cannabis taxes collect about $1 Billion

They were the first state in the US to legalize, which pays off.

California is close to reaching $ 1 billion in cannabis tax revenue this 2020.

Quite an achievement, but if we analyze it, it makes sense. Cannabis sales have continued to rise this year despite the pandemic. Reaching $ 777 million in excise duties, $ 306.7 in the third quarter alone, which are significant figures.

“This puts the industry on track to generate close to $ 1 billion this year, which is quite impressive,” said Nicole Elliot, keynote speaker at a virtual conference on cannabis.

Even with these numbers in mind, the black market still exists in California, but despite this struggle, California has managed to keep sales high during the pandemic by taking smart steps like allowing off-store pickup to minimize contact. Also allow license fees to roll over this summer. This is to ensure that operating fees do not overwhelm smaller legal firms. All of this helps legal cannabis not only survive, but thrive.

california cannabis taxes

Controversial Taxes

“The state implemented a 60-day renewal fee deferral program between May and August, and we saw that about a quarter of our eligible licensees took advantage of that program, which was quite, quite impressive,” Nicole Elliot said. “The state created some tax relief programs to help with cash flow, especially for this industry in the absence of access to capital and federal aid.”

While money, cannabis tax collection can do good things for the community as well as bring wealth to the region. Many are concerned that excess taxes will keep the illicit cannabis market thriving and further harm the regulated industry.

“I think we as a legal market have a hard time undermining illegal and unregulated businesses,” said Kristi Palmer, co-founder of Kiva Confections in Alameda.

Despite complaints against high taxes in California, the industry is currently enjoying a boom despite the closures. The taxable income raised this year makes a big difference to the state.

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