Cannabis Tax Intel

California’s annual cannabis sales fell in 2022 for the first time since adult-use launch

Published

2 years ago

February 25, 2023

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Mj Biz Daily write

Annual cannabis sales in California declined in 2022 for the first time since the state launched its adult-use market five years ago, according to state data analyzed by MJBizDaily.

Retailers generated just over $5.3 billion in taxable sales of recreational and medical marijuana last year, down 8.6% from roughly $5.8 billion in 2021, according to the latest statistics released by the California Department of Tax and Fee Administration.

Taxable sales in the fourth quarter dipped to about $1.3 billion – the third straight quarterly decline – down nearly 12% from the same period a year ago.

Depressed wholesale prices, which have made products cheaper for consumers, and the continued lack of retail outlets across wide swaths of the state have been two big drivers of this trend, according to California cannabis industry consultant Hirsh Jain.

“California’s ‘dual-licensing’ system has made it very difficult for new dispensaries to open in the years since adult-use sales began,” said Jain, the principal of Los Angeles-based Ananda Strategy.

Under California rules, cannabis businesses must obtain local authorization from the city and/or the county in which they operate before they can apply for a state license.

This system has caused major delays in issuing annual licenses since the launch of adult-use sales in 2018.

Read full article at

https://mjbizdaily.com/californias-annual-cannabis-sales-fell-in-2022-for-the-first-time-since-adult-use-launch/

STATS

2022	Q4	$108,045,315	$0	$113,600,546	$221,645,861	$1,273,317,480
2022	Q3	$135,403,051	$0	$115,914,817	$251,317,868	$1,294,730,605
2022	Q2	$147,688,374	$27,797,259	$125,910,698	$301,396,331	$1,411,750,487
2022	Q1	$155,072,502	$37,685,502	$118,813,877	$311,571,881	$1,327,688,715
2021	Q4	$160,983,530	$40,090,205	$129,451,952	$330,525,687	$1,445,373,416
2021	Q3	$177,453,322	$43,418,896	$127,955,144	$348,827,362	$1,429,266,150
2021	Q2	$180,434,103	$42,521,801	$138,905,009	$361,860,913	$1,565,098,988
2021	Q1	$162,167,667	$40,367,175	$118,261,146	$320,795,988	$1,340,624,407
2020	Q4	$154,606,825	$42,688,451	$118,040,735	$315,336,011	$1,331,895,518
2020	Q3	$169,515,480	$43,386,101	$119,280,025	$332,181,606	$1,343,093,888
2020	Q2	$137,720,149	$30,867,256	$101,973,139	$270,560,544	$1,153,228,932
2020	Q1	$112,877,640	$27,646,731	$77,778,420	$218,302,791	$877,039,109
2019	Q4	$86,897,511	$24,662,913	$70,925,039	$182,485,463	$799,185,962
2019	Q3	$84,887,286	$22,809,108	$65,839,748	$173,536,142	$742,701,526
2019	Q2	$75,731,295	$23,037,243	$60,370,850	$159,139,388	$681,999,378

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Cannabis Tax Intel

Politico Article: New Jersey – CRC approves social equity tax increase It is far lower than what was considered

Published

7 days ago

December 17, 2024

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The Cannabis Regulatory Commission on Thursday approved a new social equity tax rate on cannabis at $2.50 per ounce — a far lower number than what was previously considered.

The vote came as the commission was considering raising the cannabis Social Equity Excise Fee to $30 for an ounce. Cannabis cultivators pay the tax, which is currently $1.24 per ounce. The vote was supported by all commissioners except for outgoing commissioner Charles Barker, who abstained.

Read the full report at

https://subscriber.politicopro.com/article/2024/12/crc-approves-social-equity-tax-to-2-50-per-ounce-of-cannabis-00194113

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Cannabis Tax Intel

Maryland: Senate recreational cannabis bill differs from House bill over taxes

Published

2 years ago

March 29, 2023

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WBAL TV

The Senate’s bill to map out the legalization of recreational marijuana in Maryland differs greatly from the House proposal over taxes.

Legislation making recreational cannabis legal in Maryland still has a long way to go in a relatively short period of time. And, changes made by the Senate Finance Committee could set up a showdown between the House and Senate.

But legislative leaders put an optimistic spin on the changes, calling the differences minor and will be easy to resolve.

“This is one of those bills that everyone has just one more idea. So, the faster we can get to a place of resolution, I think will be better for everyone,” said Senate President Bill Ferguson, D-District 46.

Early this month, the House gave preliminary approval to House Bill 556, which would tax and regulate marijuana.

Under the Senate version, Senate Bill 516, it would cost Marylanders more to recreational marijuana use. The sales tax would go up from 6% to a 9% flat tax, and local governments would be allowed to tack on an additional 3% sales tax.

“While it’s not perfect, I think it offers enough good points for us to be able to move the bill forward,” said Sen. Clarence Lam, D-District 12, whose district encompasses portions of Anne Arundel and Howard counties.

Under the House bill, cannabis would be taxed at 6% for the first year and increase by 1% each year until 2018. It would be capped at 10%.

The Senate bill would still allow people to possess up to 1.5 ounces of cannabis, and current medical cannabis businesses would be allowed to convert their licenses to recreational before July 1.

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Cannabis Tax Intel

New law could increase taxes on cannabis sales in Montana

Published

2 years ago

March 29, 2023

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BILLINGS, Mont. — In the state legislature cannabis is once again taking center stage. This year, a proposed bill is seeking to undo almost all of the policy changes that were voted into effect by Montanans.

If this Bill were to pass, it would have a major impact on those who not only use cannabis recreationally but also impact the business owners and employees of Montana’s dispensaries. Zack Schopp, owner of Seed of Life Labs in Billings said the ripple effects of a law like this — would go beyond the marijuana industry.

“It’s detrimental to the business, to the employees of those businesses, to those government regulators who are employed, to the contractors of the building, to the real estate agents that are selling property. All of that economic opportunity that’s been created from cannabis is at stake with a Bill like that, there are over 5,000 Montanans who have jobs in the cannabis industry here, you know, what am I supposed to say to them if this goes through,” said Schopp

His business is just one of more than 40 dispensaries in the area according to the department of revenue, Yellowstone County generated an estimated $4,000,000.00 in Tax revenue in February of 2023.

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