As the saying goes, “The grass is always greener on the other side,” but for California’s cannabis industry, it seems the grass is greener everywhere else.
Over the past few years, the Golden State has seen a mass exodus of weed companies leaving the state for greener pastures (pun intended). Some might say it’s high time for California to take a long, hard look at why their once-thriving cannabis industry is going up in smoke.
One of the main reasons for this exodus is the high taxes and fees imposed on pot businesses by the state. California’s cannabis tax rate is 15%, on top of which there are additional taxes and fees imposed by local governments. As a result, cannabis products in California are significantly more expensive than in other states.
To make matters worse, the state’s regulatory framework for the cannabis industry is confusing, making it difficult for businesses to comply with the law. Many companies have reported delays and backlogs in the licensing process, that further increases the cost of doing business in California.
In contrast, other states have adopted more business-friendly policies, making it easier for companies to operate and flourish. For example, Oregon has no sales tax on cannabis, and Colorado has a significantly lower tax rate of just 2.9%.
Moreover, many of the states that have legalized ganja for recreational use, such as Colorado and Oregon, have seen a boom in tourism and job creation as a result. California, on the other hand, has yet to reap the benefits of recreational cannabis legalization due to the high taxes.
So, what can California do to stop the cannabis industry exodus? One solution would be to lower taxes and streamline the regs to make it easier for businesses to operate. However, given California’s notorious bureaucracy, easier said than done.
In the meantime, other states are more than happy to welcome California’s cannabis businesses with open arms. It seems that California’s loss may become gains in new areas. While the Golden State struggles to keep up. And they killed Humboldt!
It’s clear that California needs to take a long, hard look at its policies and regulations if it wants to remain competitive in the cannabis industry. Until then, other states will continue to attract businesses and reap the rewards of a booming industry.
Don’t believe me?
Ask these guys:
https://www.wsj.com/articles/marijuana-industry-and-its-unintended-consequences-11627873200
https://www.engadget.com/why-cannabis-industry-leaving-california-130011551.html
