Disruption

Calif. bill to block cannabis tax hike clears key hurdle

Supporters are concerned about the consequences for an already struggling industry.
Various marijuana buds for sale are displayed at The Green Cross cannabis dispensary in San Francisco, Wednesday, March 18, 2020. (AP Photo/Jeff Chiu)

A California bill that would repeal a planned tax increase on marijuana sales cleared a critical hurdle this week, giving the wheezing industry a breath of fresh air.

Current law requires the state to increase the tax rate from 15% to 19% on July 1 to make up for the loss in expected revenue from the state suspending the cannabis cultivation tax. The bill that the Assembly Business and Professions Committee advanced on a 15-0 vote Tuesday would halt that hike. The measure now goes to the Revenue and Taxation Committee for consideration.

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