California assemblyman proposes freeze on cannabis tax increase

A California assemblyman plans to introduce a bill next week to stop a tax increase on cannabis businesses. Assemblyman Matt Haney, a Democrat from San Francisco, wants to freeze the tax hike from 15% to 19%, set to start on July 1. Haney's proposal, called the Cannabis Tax Relief bill, comes amid concerns from dispensary owners. They worry that increasing taxes will push customers back to the black market. Zoe Schreiber, from The Highlands Dispensary near Livermore, noted that customers often complain about high cannabis prices due to taxes, which can add 30% to 40% to the total cost. Schreiber mentioned that many consumers prefer buying cannabis from unregulated sources at lower prices. She believes that a tax hike would further harm legal businesses, making it difficult for them to compete. Haney explained that the cannabis industry in California is struggling. He said a tax increase could be disastrous for legal businesses that follow the rules. He argued that taxes on cannabis products are much higher than those on alcohol. Haney also pointed out that California's cannabis market is lagging behind other states like Michigan and Colorado, where taxes are lower and regulations are more favorable. He called for action to protect legal businesses from excessive taxation while encouraging a fair environment for the cannabis industry.