INDUSTRY DEVELOPMENTS State by State WA VT NH MT OR ID WY NV UT CA CO KS MO KY NC TN AZ NM TX OK AR MS LA FL AK AL GA SC NE IA OH IL IN WV VA DE MD DC SD ND MN MA WI MI PA NJ NY RI CT ME HI ■ Medical ■ Recreational Note: This map does not include states that have legalized only CBD-based oils. ©2022 MJBizDaily, a division of Emerald X. All rights reserved. Data is current as of June 10, 2022. State News California Gov. Gavin Newsom wants to eliminate a tax on marijuana cultivation-but not without raising taxes elsewhere in the state's struggling cannabis industry. In a proposal to the Legislature for a state budget that would start in July, Newsom recommended ending the tax of $161 per pound of flower. To compensate for the lost revenue, the state would raise the retail excise tax on marijuana purchases after three years, from 15% to 19%. California marijuana companies have argued for years that heavy state tax and regulatory burdens are killing small businesses and further empowering the illicit market. Industry members have called for a reduction in the excise tax along with the elimination of the cultivation tax. Not only do California cannabis companies pay a steep tariff at the state level, but they also face taxes from local municipalities. The governor's prospective budget also calls for the state to offer roughly $20 million in grants to encourage municipalities to improve their retail licensing programs. 22 July 2022 | MJBizMagazine