Fresh off of news that California is set to raise the cannabis cultivation tax despite projections of a $31 billion surplus, one marijuana entrepreneur is calling for a potential tax revolt this summer. Michael “Mikey” Steinmetz, the co-founder of the company that makes the Flow Kana cannabis brand, is threatening to withhold his taxes unless Gov. Gavin Newsom and the Legislature adjust state marijuana regulations on July 1, 2022. He is calling on other CEOs to join him in this effort. Steinmetz issued the declaration in an op-ed on Medium, published Monday. He criticized the California Department of Tax and Fee Administration’s plans to increase the cultivation tax this January, writing “We simply reply: We’re not going to pay.” Retail marijuana is taxed three times in California: an excise tax paid by buyers, sales tax paid by customers, and the cultivation tax that growers pay. Growers want changes to the cultivation tax because they pay it before they make a sale. California’s current cannabis cultivation tax is $9.65 per dry-weight ounce for cannabis flowers, $2.87 per dry-weight ounce for leaves, and $1.35 per dry-weight ounce for cannabis plants.That will increase to $10.08 for flowers, $3 for leaves, and $1.41 for plants beginning Jan. 1.

Cannabis Business Executive – Cannabis and Marijuana industry news, 11/23/2021 08:24:00

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