HomeMy WebLinkAbout7.12.22 Board Correspondence - FW_ Budget Wins for the Cannabis Industry
From:Paulsen, Shaina
To:BOS
Subject:Board Correspondence - FW: Budget Wins for the Cannabis Industry
Date:Tuesday, July 12, 2022 8:12:36 AM
Good Morning, please see Board Correspondence below. Also, just heads up I have just returned
from vacation and will be forwarding a bunch of correspondence soon.
Shaina Paulsen
Associate Clerk of The Board
Butte County Administration
25 County Center Drive, Suite 200, Oroville, CA 95965
T: 530.552.3304 | F: 530.538.7120
From: Department of Cannabis Control <outreach@cannabis.ca.gov>
Sent: Friday, July 1, 2022 2:43 PM
To: Bennett, Robin <RBennett@buttecounty.net>
Subject: Budget Wins for the Cannabis Industry
ATTENTION: This message originated from outside Butte County. Please exercise judgment before opening
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July 1, 2022
Good Afternoon,
Yesterday, Governor Gavin Newsom signed legislation implementing the 2022-
23 state budget, including a trailer bill focused on measures that will bring tax
relief to the cannabis industry, support equity businesses, strengthen
enforcement tools against illegal cannabis operators, and protect youth,
environmental, and public safety programs funded by cannabis tax revenue.
The cannabis tax reform trailer bill will:
Indefinitely suspend the cannabis cultivation tax effective July 1, 2022
Move cannabis excise-tax collection and remittance to retail in 2023,
establishing one point of collection and remittance and greatly simplifying
tax requirements for the entire cannabis supply chain
Retain the current 15-percent excise tax rate until at least 2025, and
thereafter increase the tax rate (no higher than 19 percent) as necessary
to make up for cultivation-tax revenue
Allow eligible equity retailers to keep a percentage of the excise tax they
collect
Create new tax credits for equity licensees and some cannabis
businesses with stronger labor standards
Strengthen labor peace requirements
Protect programs funded by cannabis taxes by allocating $150 million
General Fund to backfill potential lost revenue
Make illegal cannabis businesses liable for all unpaid tax and allow bad
actors to be held personally liable for tax evasion
Among many things, this bill invests millions of dollars into equity operators and
retailers and expanding retail access, and contains reforms that will help
stabilize the cannabis market, provide relief to farmers, incentivize stronger
labor standards and crack down on the illegal market. You can access the bill
language here.
This historic budget also provides further economic relief to Californians,
expanding healthcare, boosting small businesses, and pouring billions into
public schools.
DCC is grateful to Governor Newsom and the Legislature for their commitment
to improve California’s cannabis policies and further support an equitable, safe,
and sustainable cannabis industry in California.
Thank you,
Nicole Elliott
DCC Director
About the Department of Cannabis Control
The Department of Cannabis Control (DCC) licenses and regulates commercial cannabis activity within
California. DCC works closely with all stakeholders, including businesses and local jurisdictions, to create
a sustainable legal cannabis industry and a safe and equitable marketplace. DCC develops and
implements progressive cannabis policies with robust protections for public health, safety and the
environment. DCC was recently formed by merging the three state cannabis programs.
Learn more
Integrity • Fairness • Innovation • Knowledge • Collaboration • Support
Department of Cannabis Control (DCC) - Rancho Cordova, CA
Department of Cannabis Control (DCC) - Rancho Cordova, CA
2920 Kilgore Rd
Rancho Cordova, CA 95670-6157
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