Please vote for SB 512 to end double taxation of cannabis in California
California's legal cannabis industry is struggling to compete against the illicit market, largely due to over taxation. Currently, many counties and cities that put an extra tax on cannabis revenues include the state's 15% excise tax on cannabis products as part of total revenues, in effect taxing them a second time. Also, the state includes local cannabis taxes plus the state excise tax in the total revenues subject to sales tax.
SB 512 would stop compounding taxes on top of taxes by specifying that local cannabis revenue taxes not add the state excise tax in the tax base, and that the state sales and use tax not include local taxes or the state excise tax in its tax base. These tax savings would be passed onto cannabis consumers, and help keep retailers where safe, tested products are available open for business, contributing to the state and local tax base in a more fair and effective manner.
