It’s been more than two centuries since the New World colonists dumped their tea into the sea to protest unfair taxation. Now, legal proprietors of California’s retail cannabis industry say it may be well past time for a “Weed Party” in response to astronomical taxes imposed on them when they can’t compete with black market operators.
Best Delta 8 Gummies
GET Best Delta 8 THC Carts Here
Shop For The Best Delta 8 For Sale Here
20% off: 5,000mg Delta-8 Tinctures
However, rather than toss their crops into the ocean, shop owners are floating the notion of not paying state taxes. If the idea where to gain traction statewide, that would amount to roughly $1.3 billion.
Whether the call will lead to real action is questionable, but Los Angeles marijuana business lawyers know there is no doubt retailers are treading water. Steep competition from illicit providers who don’t follow state rules – yet aren’t unequivocally shut down by the state – have cut into the survival odds for these firms. Some call it a clear case of “taxation without representation,” echoing the Revolutionary War grievances.
This is not a new problem. It’s a situation that has been ongoing for the last five years, ever since state voters approved recreational use cannabis for adults. The prospect of bolstered taxes was one that spurred many government leaders to climb aboard. The problem, business owners say, is that while those firms are happy to rake in the tax revenue, they aren’t doing enough to protect the industry from unfair competition.
Beginning first thing next year, taxes on cultivation of cannabis is increasing by 4.5 percent. This comes even as the state is staring down a budget surplus next year of $31 billion.
The “Weed Party” proposal is to put all taxes in an escrow account rather than handing to the state, in an effort to force their hand and bring them to the table. However, as marijuana business attorneys, we would tend to strongly advise against this, as it’s going to violate a myriad of regulations and tax laws and risk state license suspension. The hope is that there will be viable solutions proposed in the coming year.
Why California Marijuana Industry Tax Hikes Are Unique
Of course, no industry is a fan of tax increases, but there is also no other industry (save tobacco) that is taxed at the same sky-high rates as cannabis retailers. And unlike the tobacco industry, legal marijuana retailers are banned in most cities in the state. Plus, legal tobacco retailers aren’t threatened by a behemoth black market.
And it’s not just retailers who pay the price for it. Black market cannabis has been clearly linked to:
- Fire dangers.
- Environmental risks.
- Felony crimes.
- Health hazards.
While withholding taxes or launching a new political party might seem dramatic, many who have spent decades in the industry say this is the worst the problem has ever been.
What Exactly Is the Cannabis Tax Rate?
Voters opted to permit – and regulate – cannabis for recreational use in 2016. From the very beginning, the law imposed an excise tax of 15 percent. Additionally, cannabis growers pay a tax on the basis of what they sell in weight. That gets passed on to consumers. But that’s not all. There’s also the regular, old state sales tax, which is somewhere between 8-10 percent. On top of that, local governments that have agreed to permit cannabis sales in their jurisdictions take their own cut, sometimes as high as 15 percent.
At the end of the day, some California cannabis businesses are easily forking over 45 percent in taxes.
Meanwhile, the underground market is believed to be double that of the legal market. Products sold at these locations are half the price.
When surveyed, most Californians who buy and consume cannabis are all for purchasing products that are both legally produced and regulated, safe and grown without potentially hazardous chemicals that pollute the environment. But how much of a cost are they willing to absorb to do so? A difference of about 10 percent, research shows.
With taxes continuously on the rise, some marijuana businesses are in the red – even as they are selling overall more volume. It’s little wonder we haven’t lost more than the 6,000 cannabis retailers we had four years ago. In 2018, there were some 16,000 licensed retailers in the state. There are now roughly 10,000 – and falling.
So where is all that tax money going, if not to address the black market? Per Prop. 64 stipulations, it goes toward:
- Research on the impacts of legalization.
- Programs for at-risk youths.
- Development of protocols for roadside officers to ascertain marijuana impairment of drivers.
- Drug use treatment and prevention.
- Environmental restoration efforts.
Some jurisdictions have allowed cannabis retailers to pursue grant money, which can be funneled toward law enforcement efforts. But that doesn’t necessarily help those retailers who may be a hop-skip-jump away from black market operators the next city over.
It’s estimated the state is going to bring in roughly $145 million during the current fiscal year from cannabis businesses for licensing, regulatory fees and penalties. That goes to the operation of the Department of Cannabis Control, which has its own investigators who partner with police to take down unlawful operators. Raids are announced fairly regularly. However, the penalties are pretty weak. It’s become something of a game of whack-a-mole: One goes down, another pops back up in a place.
Some retailers say a more helpful solution would be lowering the barriers to entry (including reduced taxes), ultimately leading to a fair playing field of competition.
Tax hikes are slated to take place each year “as needed,” for the stated purpose of keeping pace with inflation. But retailers are also having to deal with issues of oversupply, resulting in falling prices.
Companies that are struggling to stay afloat may consider working with an experienced cannabis company attorney to discuss legal strategies for staying in business.
The Los Angeles CANNABIS LAW Group represents growers, dispensaries, ancillary companies, patients, doctors and those facing marijuana charges. Call us at 714-937-2050.
With taxes going up, cannabis operators threaten ‘Weed Party’, Dec. 3, 2021, By Brooke Staggs, The Orange County Register
Delta-8 is legal federally, and most state laws don't specifically address it. Due to ambiguities in the 2018 farm bill, which legalized hemp and hemp products, delta-8 is currently not prohibited by federal law.
In the human body, Delta-8 binds to the CB1 and CB2 receptors. Because it binds to both receptors simultaneously, users experience a milder cerebral high. When compared to the effects of THC, users describe a more clear-headed, productive, energetic, and upbeat feeling.
Difference Between Delta-8 THC and CBD Delta-8 THC may not be as prominent as Delta-9 THC, but it is still among the predominant cannabinoids with psychoactive properties. However, CBD is NOT a psychotropic cannabinoid. While CBD can have better results in the long run, Delta-8 THC can give you a quick fix.
Is it Legal to Fly with Delta-8-THC? Often, yes! It is legal to fly with Delta-8 when you are flying to and from areas where Delta-8 is legal, as long as the airline you choose doesn't specifically prohibit Delta-8 products.
Contains less than 0.3% Delta 9 THC. Good for chronic pain and anxiety relief. It does not cause paranoia or increased Anxiety.
Delta-8 is considered a Schedule 1 Controlled Substance by the US Drug Enforcement Administration (DEA) because it is known to cause psychoactive impairment to the consumer.
Delta-9 THC is a property of cannabis discovered all the way back in 1964. The primary difference between Delta-8 THC and Delta-9 THC is that Delta-8 is just a bit less psychoactive than Delta-9. This means that products with Delta-8 THC have a more gradual, and therefore more satisfying, effect on the consumer.
Although in an edible form, Delta-8 THC can metabolize into a natural chemical called 11 Hydroxy tetrahydrocannabinol. Since 11 Hydroxy THC can only be absorbed through the liver, the molecule's possible psychoactive effects can last up to 6 to 8 hours during digestion.
According to the NCI, Delta-8 uniquely binds twice with cannabinoid receptors in the nervous system that play a role in sleep by calming down processes like breath, heart rate, and mental activity.
Delta-8 THC is one of the hottest topics in cannabis right now. It's a minor cannabinoid that can get you high like traditional THC, but much less so. Delta-8 found in small amounts in the cannabis plant and is often converted from other compounds like CBD.
5 benefits delta 8 could offer you According to the National Cancer Institute, delta-8 THC can bind to the CB1 receptor throughout the body. These receptors are part of our endocannabinoid system, which helps our body regulate and maintain homeostasis.
Delta-8 is yet another compound derived from Cannabis sativa or the hemp plant. As you likely know by now, this is the same natural origin that CBD, THC, CBG, CBN, and CBC come from, too. Though all of these compounds are related to some degree, delta-8 is closest to CBD and delta-9 (also often known plainly as THC).
Delta-8 may not produce intense euphoria, but it will take effect pretty quickly. Depending on your mode of intake, of course, the time of impact will vary. If you vape it, you will experience the effects within 1 to 6 minutes. If you use a tincture, you will get the first effects after half an hour.
The Short Answer: Yes. Hemp-derived Delta-8 THC products, containing less than 0.3% D-9 THC is legal in all 50 states of the USA. But what if the extract contains more than 0.3% Delta-9 THC?
A research study from 2004 concluded that delta-8 helps increase appetite while promoting weight loss. This effect is certainly very unique, and scientists will do even more research on this subject. These effects might be due to the potential benefits delta-8 has on metabolism.
Yes, Delta 8 can make you feel hungry. Delta 8 is an appetite-stimulating analogue of tetrahydrocannabinol (or THC). Of course this depends on the amount you smoke (vapes) or consume (edibles), but Delta 8 has been reported to stimulate your appetite, in some cases, even more than Delta 9 (marijuana).
Whatever makes you laugh, Delta-8 is a great way to start the fun. In fact, we've developed Delta-8 products because we love to see people laugh.
Delta-8 THC actually converts into delta-11 THC when processed through the digestive tract. Since delta-9 THC also converts into delta-11 THC when eaten, there's no special benefit to eating delta-8 THC. In general, research suggests that delta-8 has about two-thirds of the potency of delta-9.
In the present study, we have demonstrated that Δ8-THCV exerted protective effects against liver I/R reperfusion damage by attenuating tissue injury, oxidative stress and inflammatory response.
Our Delta-8-THC Gummies — Best for Beginners They contain 10 mg of delta-8-THC per gummy, which is a great dose to start your journey into edibles with. It will give you a relaxing buzz, and you can easily increase the dosage as needed. Our delta 8 gummies are made from a broad-spectrum hemp extract.