California lawmakers have given final approval a bill to prevent what advocates call the “double taxation” of marijuana by restricting the ability of local governments to calculate their cannabis levies after state taxes are already applied.

Marijuana Moment

California lawmakers have given final approval a bill to prevent what advocates call the “double taxation” of marijuana by restricting the ability of local governments to calculate their cannabis levies after state taxes are already applied. The legislation’s sponsor says if the proposal is signed into law it will end what he calls the “collection of a tax on a tax.”

On Thursday, the Assembly unanimously passed the legislation from Sen. Steven Bradford (D) in a 75-0 vote. It would make it so state taxes that marijuana businesses pay wouldn’t be included in the calculus of how localities determine their own local cannabis taxes.

California NORML is encouraging Gov. Gavin Newsom (D) to sign the measure, arguing that marijuana is “already heavily overtaxed relative to comparable goods in California.”

“Compounding taxes simply leads to an artificially inflated purchase price and incentivizes consumers to purchase cannabis from the unlicensed, untested, and untaxed market,” the organization said in a call to action alert.

Read the details

California Lawmakers Approve Bill To Prevent ‘Double Taxation’ Of Marijuana By Local Governments