July 1st kicked in a host of new taxes in the State of California, including the Cannabis Tax. Marijuana and other forms of cannabis saw a sales tax increase statewide to 19%, up from 15%.
In addition, in WeHo, as of July 1, the 2% rebate on sales tax offered to licensed cannabis businesses within the City of West Hollywood expired. On Monday next week, the city council will consider re-instating the 2% rebate to the cannabis business owners. Consumers will continue to pay the higher rates.
The increase is due to Assembly Bill 195, which eliminated the cultivation tax in 2022 and stipulated that the California Department of Tax and Fee Administration (CDTFA) adjust the excise tax to compensate for the lost revenue, up to a maximum of 19%.
At the local Artist Tree, a $100 purchase on July 1 added up to $142.49. Taxes comprised $42.49, which included an excise tax of $20.59, West Hollywood city tax of $7.50, and a state tax of $13.54.
Assembly Bill 564 is under consideration that would set the state sales tax at 15% through 2031.
there are many other dispensaries outside, but by the border of WeHo.
I am no cannabis enthusiast but this tax structure is going to run to the dispensaries out of West Hollywood. California state government right on down to the municipal government have been so unbelievably stupid about cannabis legalization. Nobody I know who uses marijuana purchases from a dispensary. They just use a dealer like people did in the 1970s.
Taxing vices like alcohol, tabbacco and pot is such a cash cow
Would be okay if the money was going to help residents of West Hollywood. All of our money is being stolen by overpaid city employees and their bloated pensions.
42% taxes is insane.
I seem to remember every proponent of legalizing cannabis using the argument that legalization would create tax revenue instead of petty criminals, so there really shouldn’t be any complaints about this truly exorbitant money grab.
And cue more vacancies…majority of the cannabis stores in weho are barely surving atm.
What makes you say that?