Imposes an excise tax on the propagation and cultivation of cannabis and the manufacture of cannabis products. The revenue raised by this tax is focused fixing the impacts created by two decades of unregulated agriculture. The tax measure provides a simple and affordable answer to the most important question: how can we afford to clean up the mess, put more patrols on rural roads and in neighborhoods, and prevent continued bad practices?
The California Growers Association supports this effort to generate revenue needed in order to address the acute environmental and public safety issues that communities throughout California have experienced due to trespass and illegal growing operations. The legislation achieves our organization’s co-equal goals supporting industry transition into a regulated marketplace while providing funding to address the societal and environmental impacts that a lack of cohesive rules has created.
We have proposed a “tiered excise tax rate” on medical cannabis flower reflecting small, medium and large-scale grower licenses that will be available by 2018. As growers transition into a regulated marketplace we believe it is critically important to provide economic incentives to the smallest cultivators to reduce impacts to those farmers who will struggle most with the regulatory transition. This tiered tax rate will also ensure that the largest operations licensed pay their fair share of the costs associated with environmental remediation and protecting public safety.