Once thriving Humboldt County cannabis cultivators are struggling to survive as the prices for their product plummet. State legislators are looking …
Last week, North Coast State Sen. Mike McGuire introduced a bill that would shift the burden of the the cannabis cultivation tax from growers to consumers by folding it into the cannabis excise tax. The $350 million that’s currently generated by the tax to fund things like early childhood programs would be backfilled by the state’s general fund for the first three years. The cultivation tax would be paused for the first three years, too.
“This is one of the few pieces of legislation that guarantees a backfill for commitments that are prescribed in Proposition 64,” McGuire told The Times-Standard. “So 100% of the program commitments spelled out in Proposition 64 would be followed through upon with this legislation.”
The legalization of cannabis by California voters in 2016 through the passage of Proposition 64 created a host of issues for Humboldt County growers. Among the primary issues is that the cultivation tax is based on weight, which wasn’t an issue when cannabis prohibition artificially inflated the prices – continued in article , link below.
Humboldt County cannabis growers struggle with plummeting prices, high taxes
