In the ever-evolving landscape of cannabis laws and regulations, the Cannabis Law Group, led by Damian Nassiri, stands as a beacon of guidance for businesses in Southern California and across the United States. With over 14 years of experience in the industry, Nassiri and his team primarily assist clients seeking cannabis business licenses, including cannabis retail storefront, delivery, cultivation, manufacturing, and distribution licenses. Today, they shed light on a significant development in California’s cannabis industry: Senate Bill 512 (SB 512).
SB 512, designed to end the double taxation of cannabis in California, is a beacon of hope for an industry struggling under the weight of over-taxation. Currently, under the Adult Use of Marijuana Act, the cannabis excise tax is set at 15% of gross receipts from licensed retail cannabis sales. Many local governments impose additional taxes on cannabis, ranging as high as 10% in some jurisdictions. Retailers are required to include these excise taxes in the definition of gross receipts when charging additional sales taxes of 7.25 – 10.5%. This double or even triple taxation has placed an undue burden on the cannabis industry.
SB 512 aims to rectify this situation by ending this excessive taxation, delivering much-needed relief to an industry that is currently unfairly overtaxed. The bill’s passage would significantly impact the financial health of cannabis businesses, potentially leading to increased profitability and growth.