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.
On Monday, July 10, a critical vote took place in the California Assembly Revenue and Tax Committee. The results of this vote will have far-reaching implications for the future of the cannabis industry in California. As we await the final decision, it’s crucial to understand the potential impact of SB 512 on the industry.
Just as joint ventures have provided innovative solutions for cannabis businesses to bolster profits and reduce costs, SB 512 could provide a similar lifeline for the industry. As Nassiri has previously discussed, joint ventures can be an effective way for businesses to pool resources and minimize risk. However, they are not a one-size-fits-all solution, and each situation requires careful consideration and legal guidance.
SB 512 represents a similar opportunity for the cannabis industry. By reducing the tax burden on cannabis businesses, it could free up resources for businesses to invest in growth and innovation. However, like any legal change, it requires careful navigation and understanding.
As a seasoned cannabis attorney with extensive experience in the industry, Nassiri is well-equipped to guide businesses through these changes. Whether you’re seeking a cannabis business license, navigating a joint venture, or trying to understand the implications of SB 512, the Cannabis Law Group is here to help.
They offer legal consultations in person in their Newport Beach office, over the phone, or via Zoom, depending on your preference. Their goal is to provide you with the legal guidance you need to navigate the complex landscape of cannabis law.
The Cannabis Law Group represents cannabis storefront retailers, cultivators, delivery services, manufacturers, and distributors, as well as CBD / Hemp cultivators, retailers, and manufacturers. If you have questions about SB 512, how to initiate a joint venture with your cannabis company, or need a legal review of an agreement, they can help. Call them at 949-375-4734 or visit their website for more information.
Remember, the cannabis industry is constantly evolving, and staying informed is key to success. As your trusted cannabis lawyer, Nassiri is committed to keeping you updated on the latest developments and providing the legal guidance you need to thrive in this dynamic industry.