Two California laws went into effect today that will help expand the state’s marijuana market despite ongoing federal cannabis prohibition.
Assembly Bill 195 (AB195) makes several changes to the Medicinal and Adult-Use Cannabis Regulation and Safety Act (MAUCRSA) including the repeal of the cultivation tax.
Under the previous taxing scheme, the state levied a flat-rate cultivation tax of $10.08 per dry-weight ounce of cannabis flower and $3 per dry-weight ounce for leaves. There was also a 15 percent excise tax levied at the retail level. The new law eliminates the cultivation tax.