Tax cut for California pot industry: Too little, too late?

By MICHAEL R. BLOOD
Associated Press

LOS ANGELES (AP) — Gov. Gavin Newsom is proposing a temporary tax cut for California’s ailing marijuana industry, but businesses say it falls short of what’s needed to revive the shaky pot economy. Broad legal sales began in 2018, but the industry has struggled with hefty taxes, regulation and competition from a vast illegal marketplace. The administration will recommend eliminating the cultivation tax. But a later increase would come in the retail excise tax to make up for those funds, possibly as soon as 2024. Jerred Kiloh of the United Cannabis Business Association says the plan would not cut consumer prices or lure buyers back from the underground market.