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California cannabis growers, operators call for change amid brink of collapse

Small cannabis growers and operators say that high state taxes can permanently shut down many legitimate marijuana businesses. “I’ve had a hard time, but I hope things change,” said Mindy Galloway, CEO of Sacramento’s Khemia Manufacturing. Her business, like many other small businesses in the state, is fighting to survive. “Galloway explained. “It’s hard to keep up with all taxes, fees and licenses.” | Details | California pot companies gather at the State Capitol on Thursday to warn of an imminent industrial collapse, and marijuana in California He called for a review of the tax system and awareness of the remaining inequality in the ecosystem. Smallholders are taxed because they don’t really exist, “said Amber Senter, Executive Director of Supernova Women. “Outdoor cannabis is $ 300 per pound and the cultivation tax is $ 161 per pound, so if you calculate that, more than 50% of one pound of cannabis is taxed.” Meanwhile, the illegal cannabis market. “If you buy cannabis in the illegal and legal markets, the price is one-third,” explains Tiffany Devitt, Head of Government and Consumer Affairs at CannaCraft. “Customers away from legally operated companies are pushed out by small people,” Galloway said. Gavin Newsom said this week that he would respond to industry concerns, support cannabis tax reform and work on amending current policies. Cannabis supporters say they want the governor and state legislators to keep their promises. “California, we’re tired of rhetoric,” said Kika Kieth, founder of Gorilla Rx. “It’s time to support your word on a budget.” Voters passed Proposal 64 in 2016 to legalize the use of marijuana for adults over the age of 21. Newsom, then deputy governor, supported the move. Related | Sacramento awarded $ 5.7 million to support the cannabis business through a long licensing process

Small cannabis growers and operators say that high state taxes can permanently shut down many legitimate marijuana businesses.

Mindy Galloway, CEO of Sacramento’s Khemia Manufacturing, said:

Her business, like many other small businesses in the state, is fighting to survive.

“The margins are very small,” Galloway explained. “It’s hard to keep up with all taxes, fees and licenses.”

| Details | California cannabis company warns of an imminent industrial collapse

On Thursday, a coalition of cannabis supporters gathered at the State Capitol to call for a review of California’s marijuana tax system and awareness of the remaining inequality in the ecosystem.

“Small businesses, especially social equality and smallholders, are taxed in the absence of reality,” said Amber Senter, Executive Director of Supernova Women. “Outdoor-grown cannabis costs $ 300 per pound and the cultivation tax is $ 161 per pound. So, when you calculate, more than 50% of a pound of cannabis is taxed.”

Meanwhile, the illegal cannabis market continues to grow.

“If you buy cannabis in the illegal and legal markets, the price is one-third,” explains Tiffany Devitt, Head of Government and Consumer Affairs at CannaCraft.

Low prices keep customers away from legally operated businesses.

“It’s the little ones that are pushed out,” Galloway said.

Governor Gavin Newsom said this week that he would respond to industry concerns, support cannabis tax reform and work on amending current policies. Cannabis supporters say they want the governor and state legislators to keep their promises.

“California, we’re tired of rhetoric,” said Kika Kieth, founder of Gorilla Rx. “It’s time to back up your words with your budget.”

Voters passed Proposal 64 in 2016 to legalize the use of marijuana in adults over the age of 21. Newsom, then deputy governor, supported the move.

| Related | Sacramento awarded $ 5.7 million to support the cannabis business through a long licensing process

California cannabis growers, operators call for change amid brink of collapse Source link California cannabis growers, operators call for change amid brink of collapse

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